EFCC Exposes Financial Institutions for Enabling Massive Fraud Schemes
The Economic and Financial Crimes Commission (EFCC) has leveled serious allegations against multiple banks, fintech companies, and microfinance institutions, accusing them of facilitating widespread fraud through inadequate customer verification procedures. This revelation came during a media briefing in Abuja on Thursday, January 22, 2026, where Wilson Uwujaren, the EFCC's director of public affairs, disclosed the findings of investigations into two major fraud operations that have collectively impacted more than 900,000 Nigerians across the nation.
Systemic Failures in Financial Oversight
Uwujaren revealed that probes uncovered significant compliance lapses across what he described as a new generation bank, six fintech firms, and several microfinance banks. According to his statement, these institutions systematically bypassed standard banking safeguards, allowing fraud proceeds to be converted into digital assets and transferred to secure locations without triggering any security alerts.
The financial scale of these failures is staggering - a total of N18,739,999,027.35 flowed through Nigeria's financial system without proper due diligence from banks. Even more concerning was the revelation that cryptocurrency transactions worth N162 billion passed through one new-generation bank without any form of customer verification or compliance checks.
In one particularly egregious case, another bank permitted a single individual to operate 960 separate accounts, all allegedly established exclusively for fraudulent purposes. This blatant disregard for banking regulations highlights systemic weaknesses in Nigeria's financial oversight mechanisms.
Two Major Fraud Schemes Uncovered
Airline Ticket Scam and Crypto Laundering Operation
The first scheme involved an elaborate airline ticket discount scam where unsuspecting victims were lured with false promises of cheap flight tickets. Payments were cleverly disguised as legitimate transfers to airline accounts, after which victims' bank balances were completely drained. Uwujaren confirmed that over 700 Nigerians lost a combined N651.1 million to this sophisticated operation.
To date, only N33.6 million has been recovered and refunded to victims. Investigations revealed that foreign nationals orchestrated the scam, recruiting young Nigerians as accomplices and utilizing cryptocurrency transactions routed through the Bybit exchange to move illicit funds internationally.
Deceptive Investment Scheme Defrauds Thousands
The second major fraud operation was linked to Fred and Farid Investment Limited (FF Investment) alongside eight affiliated companies. This elaborate scheme defrauded more than 200,000 Nigerians of approximately N18.08 billion through deceptive investment packages promising unrealistic returns.
The companies implicated in this scheme include:
- Credio Banco Limited
- Deliberty Rock Limited
- Liam Chumeks Global Service
- Ngwuoke Daniels Technology
- Icons Autos and Import Merchant
- Newpace Technology Services Limited
- Primepath Ways Ventures Limited
- Kaka Synergy Network Limited
- Sunlight Tech Hub Services Limited
The EFCC has already arrested and arraigned three Nigerian collaborators, while the foreign masterminds behind the operation remain at large.
Regulatory Consequences and Warnings
Uwujaren issued a stern warning that any financial institution found complicit in facilitating fraud risks suspension of operations and criminal prosecution. He urged regulatory bodies to strictly enforce compliance with Know Your Customer (KYC) standards, customer due diligence requirements, and suspicious transaction reporting protocols.
The EFCC's investigation highlights broader concerns about financial sector vulnerabilities. In a related development, the commission recently warned about increasing incidents of bank-related fraud during Episode 145 of #EFCCCONNECT, drawing attention to several fraudulent practices becoming increasingly common within the banking system.
These include:
- Accounting manipulation and financial statement fraud
- Cheque forgery and alteration schemes
- Falsified loan applications and documentation
- Identity theft and impersonation tactics
- Sophisticated money laundering activities
The commission has advised members of the public to remain vigilant and recognize red flags when dealing with financial institutions and investment opportunities. This case represents one of the most significant financial fraud investigations in recent Nigerian history, exposing critical weaknesses in the country's financial regulatory framework and compliance enforcement mechanisms.
