Fraudsters’ Paradise: EFCC Reveals How Banks, Fintechs Laundered ₦162 Billion In Cryptocurrency

The Economic and Financial Crimes Commission (EFCC) has revealed serious breaches within Nigeria’s financial system, showing that commercial banks, fintech companies, and microfinance institutions facilitated the movement of ₦162 billion in cryptocurrency transactions and ₦18.7 billion in fraud proceeds without performing required due diligence.

According to the Commission, these lapses allowed fraudsters—many of them foreign nationals—to launder illicit funds, convert them into digital assets, and transfer the money offshore, with over 900,000 Nigerians falling victim to the schemes.

The disclosure was made on Thursday, January 22, in Abuja during a media briefing by the EFCC’s Director of Public Affairs, Commander Wilson Uwujaren, who highlighted the agency’s major investigative breakthroughs at the start of its 2026 operational year.

Uwujaren stated that several financial institutions ignored Know Your Customer (KYC) and Customer Due Diligence protocols, creating vulnerabilities exploited by fraud syndicates.

Fake Airline Ticket Scam Exposed
One scheme involved a syndicate that used a fake airline ticket discount platform to defraud foreign travelers. The fraudsters employed deceptive payment modules mimicking legitimate airline accounts, tricking victims into transferring funds.

“The payment module was designed to convince victims that their payment went directly to the airline. Once the payment was made, the entire bank balance of the passenger was drained,” Uwujaren said.

Although only seven victims initially reported the scam, investigations revealed over 700 affected individuals, with total losses estimated at ₦651.1 million. The EFCC has recovered and returned ₦33.6 million to victims.

The scheme was orchestrated by a foreign national who recruited young Nigerians, supplied them with laptops and specialized software, and exploited compromised bank accounts. The stolen funds were subsequently converted to cryptocurrency and transferred via the Bybit platform.

₦18.1 Billion Investment Fraud, 900,000 Victims
The EFCC also uncovered a larger investment scam involving a firm that lured Nigerians into fraudulent investment packages. Over 900,000 Nigerians were defrauded, with the scheme generating ₦18.1 billion through nine companies posing as legitimate investment platforms.

Investigations indicated that foreign nationals masterminded the scam, while three Nigerian accomplices have been arrested and charged to court, with efforts ongoing to apprehend fleeing suspects.

Financial Institutions’ Compromised Due Diligence
A major concern raised by the EFCC is the role of financial institutions in facilitating the fraud. Uwujaren revealed that a new-generation bank, along with six fintech and microfinance institutions, compromised standard banking procedures, allowing fraud proceeds to move through the system unchecked.

“Banks moved a total of ₦18.7 billion without performing due diligence on customers,” he said, adding that cryptocurrency transactions totaling ₦162 billion passed through a single bank without adequate scrutiny.

Investigators also found that another bank allowed a single customer to operate 960 accounts, all used solely for fraudulent activities.

The EFCC has called on regulatory authorities to enforce strict compliance across the financial sector, warning that institutions found aiding or abetting fraud would face sanctions, investigation, and potential prosecution.

“Deposit Money Banks, fintechs, and microfinance banks found to be complicit in fraudulent activities should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” Uwujaren said.

He emphasized that negligence and failure to monitor suspicious or structured transactions will no longer be tolerated, urging financial institutions to strengthen internal controls to prevent further economic losses.