EFCC Flags Banks, Fintechs in ₦18.7bn Fraud Schemes

The Economic and Financial Crimes Commission (EFCC) has raised the alarm over alleged negligence and compromise by some banks and fintech companies in two major fraudulent schemes that have cost Nigerians a total of ₦18,739,999,027.35.

The warning was issued in Abuja on Thursday, January 22, 2026, by the EFCC’s Director of Public Affairs, Commander of the EFCC, CE Wilson Uwujaren, while briefing journalists on the operations of the fraud networks and the role of financial institutions in enabling them.

Uwujaren disclosed that one new-generation bank, alongside six fintech and microfinance banks, allegedly aided fraudsters in defrauding unsuspecting Nigerians through airline discount and bogus investment schemes.

He explained that the first scheme involved airline discount fraud, in which fraudsters advertised fake discounted flight tickets for a foreign airline. Victims were deceived into believing their payments were being made directly to the airline, but once payment was completed, their bank accounts were completely emptied.

According to the EFCC, over 700 victims lost a total of ₦651,097,755 to the scheme. The Commission has so far recovered and refunded ₦33,628,000 to affected victims. Uwujaren, however, warned that foreign actors behind the fraud were converting stolen funds into cryptocurrency and transferring them through platforms such as Bybit.

The second scheme involved a company, Fred and Farid Investment Limited (FF Investment), which lured Nigerians into fraudulent investment arrangements. More than 200,000 victims were reportedly affected, with ₦18,088,901,272.35 generated through nine affiliated companies offering various fake investment packages. In total, more than 900 Nigerians were defrauded through the alleged connivance of financial institutions.

Uwujaren said foreign nationals masterminded the schemes, working with three Nigerian accomplices who have been arrested and charged to court.

Providing further details, the EFCC’s Director of Investigations, Abdulkarim Chukkol, and the Acting Director of the Abuja Zonal Directorate, Michael Wetcas, accused some financial institutions of compromising standard banking procedures. They said the institutions allowed fraud proceeds to be converted into digital assets and moved to foreign destinations without proper scrutiny.

They revealed that ₦18.74 billion passed through the financial system without adequate customer due diligence, adding that cryptocurrency transactions worth ₦162 billion were processed through a new-generation bank without proper checks. Investigations also showed that a single customer operated 960 accounts in the same bank, all allegedly used for fraudulent activities.

The EFCC called on financial regulators to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), Suspicious Transaction Reports (STRs), and related regulations. It warned that any deposit money bank, fintech, or microfinance bank found to be aiding fraudsters should be suspended and referred to the Commission for investigation and possible prosecution.

The Commission further cautioned that negligence or failure by banks to monitor suspicious and structured transactions would no longer be tolerated, assuring Nigerians of its continued commitment to combating money laundering and protecting the integrity of the financial system.