The Economic and Financial Crimes Commission (EFCC) has uncovered deep-rooted compromise within Nigeria’s financial system, revealing that commercial banks, fintech companies and microfinance banks enabled the movement of ₦162 billion in cryptocurrency transactions and ₦18.7 billion in fraud proceeds without conducting mandatory due diligence.
The Commission said the lapses by financial institutions allowed fraudsters, many of them foreign nationals, to launder illicit funds, convert proceeds into digital assets and transfer them to offshore destinations, with more than 900,000 Nigerians falling victim to the scams.
Naijaonpoint reports that the revelations were made on Thursday, January 22, in Abuja during a media briefing by the Director of Public Affairs of the EFCC and Commander of the Commission, Wilson Uwujaren, as he highlighted major investigative breakthroughs recorded by the agency at the start of its 2026 operational year.
Uwujaren said investigations showed that several financial institutions ignored Know Your Customer (KYC) and Customer Due Diligence protocols, creating loopholes exploited by fraud syndicates.
Fake Airline Ticket Scheme Exposed
According to Uwujaren, one of the schemes involved a syndicate that used a fake airline ticket discount platform to defraud unsuspecting foreign travellers.
He explained that the fraudsters deployed deceptive payment modules designed to mimic legitimate airline accounts, tricking victims into making payments.
“The payment module is designed in such a way that their victims would be convinced that the payment is actually made into the account of the airline. No sooner the payment is made than the passenger’s entire funds in his bank account are emptied,” Uwujaren said.
While only seven victims initially reported the fraud, he said extensive investigations revealed that more than 700 victims were affected, with total losses estimated at ₦651.1 million.
The EFCC, he added, has so far recovered and released ₦33.6 million to victims.
Uwujaren disclosed that the scheme was masterminded by a foreign national who recruited young Nigerians, supplied them with laptops and specialised software, and used compromised bank accounts to carry out the fraud.
He said the proceeds were subsequently converted into cryptocurrency and transferred through the Bybit platform.
₦18.1bn Investment Scam, 900,000 Victims
The EFCC also uncovered a far larger investment fraud linked to an investment firm that lured Nigerians into bogus investment packages.
Uwujaren said more than 900,000 Nigerians were defrauded in the scheme, with a total of ₦18.1 billion generated through nine companies posing as legitimate investment platforms.
Investigations again pointed to foreign nationals as the masterminds, while three Nigerian accomplices had been arrested and charged to court. Efforts, he said, were ongoing to apprehend the fleeing suspects.
Banks, Fintechs Compromised Due Diligence
A major concern raised by the anti-graft agency was the role played by financial institutions in facilitating the fraud.
Uwujaren disclosed that a new-generation bank, alongside six fintech and microfinance banks, compromised standard banking procedures, allowing fraud proceeds to be laundered through the system.
“A total sum of ₦18.7 billion had been moved through our financial system without due diligence of customers by the banks,” he said.
He further described as alarming the discovery that cryptocurrency transactions worth ₦162 billion passed through a new-generation bank without adequate checks.
According to him, another bank allowed a single customer to operate as many as 960 accounts, all of which were used exclusively for fraudulent activities.
“It is worrisome that investigations by the Commission showed that cryptocurrency transactions to the tune of ₦162 billion passed through a new generation bank without any due diligence,” Uwujaren added.
The EFCC called on regulatory authorities to enforce strict compliance across the financial sector, warning that institutions found to be aiding or abetting fraud would face sanctions, investigation and possible prosecution.
“Deposit Money Banks, fintechs and microfinance banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” Uwujaren said.
He stressed that negligence and failure to monitor suspicious or structured transactions would no longer be tolerated, urging financial institutions to urgently strengthen internal controls to stop leakages that continue to drain the nation’s economy.