Key Highlights
- Nigerian authorities found N162 billion in cryptocurrency and N18.1 billion in other fraud moved through banks, fintechs, and microfinance banks.
- Two major scams were exposed: a fake airline ticket scheme with over 700 victims and a fake investment platform, FF Investment, with over 200,000 victims.
- N33.62 million has been recovered and returned to some victims, while some foreign suspects are still at large.
Nigerian authorities have uncovered a large-scale financial fraud involving a new-generation commercial bank, six fintech companies, and several microfinance banks.
The Economic and Financial Crimes Commission (EFCC) said these institutions allowed suspicious crypto transactions to move through their systems without proper checks, helping fraudsters launder huge sums of money.
Weak controls flagged in customer transactions
Authorities said crypto transactions worth N162 billion, along with N18.7 billion in other fraud proceeds, were processed without adequate verification. “A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks,” said Wilson Uwujaren, Director of Public Affairs.
Investigators said the banks and fintechs allowed suspicious transactions to pass through their systems, which exposed some serious weaknesses in internal controls. In some cases, criminals were converting stolen funds into digital assets and sending them to accounts outside the country.
In one case, a single person operated 960 accounts in a bank, all used for fraudulent activities. The authorities said they have already recovered N33.62 million and returned it to some victims.
EFCC exposes two major scams
According to EFCC, two major scams were spotted. The first involved a fake airline ticket scheme. Victims were told they were paying a foreign airline directly for discounted tickets, but after they made payment, funds were emptied from their accounts.
“The payment module was designed in such a way that the victims’ payments appeared to be credited to the airline,” Uwujaren said. Over 700 people lost an estimated N651 million in this scam. Authorities said the scheme was run by a foreign national who recruited young Nigerians to carry out the fraud using specialized software.
The second scam involved a fake investment company known as Fred and Farid Investment, also known as FF Investment. More than 200,000 Nigerians were tricked into buying fake investment plans, which resulted in about N18 billion stolen from them. The company ran through several smaller firms, including Credio Banco Limited, Deliberty Rock Limited, and Newpace Technology Services Limited. Three Nigerian accomplices have been arrested, while the foreign leaders are still on the run.
Crypto push and response
Nigeria remains Africa’s largest crypto market. According to a recent report, the country processed about $92.1 billion in crypto transactions from 2024 to 2025. This is almost three times more than in other major countries in Africa, such as South Africa.
Assets like Bitcoin and stablecoins are used the most, particularly among young, tech-savvy users, students, and entrepreneurs. Recently, the government passed new regulations that allow authorities to tax up to 25% on crypto profits made by citizens.
However, following recent scam reports, authorities have issued a warning that institutions must check their customer records properly and report any suspicious transactions immediately. They said companies that help fraudsters should be suspended and handed over for investigation.
Also Read: Kansas Proposes Bitcoin Reserve Using Unclaimed Digital Assets
