EFCC Uncovers Over N18.7bn Investment Scam

The Economic and Financial Crimes Commission (EFCC) has busted a large-scale investment fraud scheme that has defrauded Nigerians of over N18.7 billion.

The fraud was perpetrated by a foreign national on the International Police (INTERPOL’s) wanted list, with the collaboration of some Nigerians.

At a media briefing in Abuja yesterday, the director of Public Affairs of the EFCC, Wilson Uwujaren, said over 900,000 Nigerians have been exploited and defrauded, while unnamed new-generation banks, microfinance, and fintech companies were indicted in the investigation.

The EFCC revealed that the fraud involved a fake investment platform operating under the name Fred and Farid Investment Limited, also known as FF Investment, which has defrauded more than 200,000 Nigerians.

He said investigations showed that the syndicate raked in a total of N18,088,901,272.35 through multiple affiliated companies that offered bogus investment packages to the public.

Uwujaren stated that foreign nationals were the masterminds of the investment fraud, while three Nigerian accomplices have been arrested and charged in court.

He added that one of the principal suspects had been apprehended, while efforts are ongoing to track down other fleeing suspects.

A major concern highlighted by the EFCC was the alleged compromise of Nigeria’s financial system by some banks and fintech institutions.

Uwujaren disclosed that one new-generation bank, alongside six fintech and microfinance institutions, failed to comply with basic Know Your Customer and customer due diligence procedures, allowing fraud proceeds to flow freely through the banking system.

According to him, investigations revealed that N18.74 billion linked to the fraud schemes passed through the financial system without proper scrutiny.

Uwujaren also revealed another scheme, a fraudulent airline ticket discount operation targeting unsuspecting Nigerians, especially foreign travellers.

According to him, the fraudsters advertised heavily discounted tickets from foreign airlines, designed payment platforms that appeared legitimate, convincing victims that payments were being made directly into airline accounts, and then explained that shortly after payments were made, victims’ bank accounts were emptied.

The anti-graft agency revealed that only 7 victims initially reported the case to the EFCC, but further investigation revealed that more than 700 people had been defrauded, with losses totalling N651,097,755.

He said the commission has so far recovered and returned N33.6 million to the victims.

Uwujaren said the airline fraud scheme was masterminded by a foreign national who recruited young Nigerians and equipped them with laptops and specialised software to compromise victims’ bank accounts.

He added that the proceeds from the fraud were converted into cryptocurrency and transferred through digital platforms, including Bybit.

The commission also stated that cryptocurrency transactions valued at N162 billion were processed through a single new-generation bank without adequate due diligence, noting that in another instance, a single customer operated as many as 960 bank accounts at the same bank, all of which were allegedly used for fraudulent purposes.

The EFCC called on the Central Bank of Nigeria to compel financial institutions to fully comply with existing regulations on “Know Your Customer”, customer due diligence and suspicious transaction reporting.