The Economic and Financial Crimes Commission (EFCC) on Thursday, January 22, exposed the role of banks and fintechs in facilitating airline and investment fraud amounting to ₦18.7 billion.
EFCC’s director of public affairs, Wilson Uwujaren, revealed that negligence and compromised procedures within these financial institutions allowed fraudsters to launder proceeds, with victims losing millions of naira through bogus flight discounts and fake investment platforms.
The first scheme involves fraudulent airline discounts, where unsuspecting travellers are lured to pay for flight tickets using a manipulated payment system.
“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.
Investigations show that over 700 Nigerians have fallen victim to this scam, losing ₦651 million.
Uwujaren stated that the EFCC recovered ₦33 million, which has been returned to the victims, but warned that foreign actors involved are increasingly using platforms such as Bybit to convert illicit gains into digital assets.
The second scheme centers on a company called Fred and Farid Investment Limited, which offered bogus investment opportunities.
More than 200,000 individuals have been defrauded, with total losses amounting to ₦18 billion, collected through nine linked companies.
Uwujaren noted that foreign nationals orchestrated the schemes with the help of three Nigerian accomplices, who have been arrested and charged to court.
EFCC director of investigations, Abdulkarim Chukkol, and acting director of the Abuja zonal directorate, Michael Wetcas, revealed that financial institutions compromised due diligence processes, enabling fraudsters to move illicit proceeds without scrutiny.
According to them, cryptocurrency transactions worth ₦162 billion passed through a single new generation bank without proper verification, and one customer maintained 960 accounts, which were used for fraudulent purposes.
The commission urged regulatory bodies to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Report (STR) guidelines.
The commission also stated that banks, fintechs, and microfinance institutions found aiding fraudsters should be suspended and referred to the EFCC for investigation and prosecution.
Uwujaren reaffirmed the commission’s commitment to combating money laundering and urged financial institutions to strengthen operational controls to protect the economy from leakages and fraudulent exploits.
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