The Economic and Financial Crimes Commission (EFCC) has sounded a strong warning over what it described as negligence and complicity by some banks and fintech companies in two large scale fraud schemes that have collectively cost victims ₦18.74 billion.
The alert was issued in Abuja on Thursday, January 22, 2026, by the Commission’s Director of Public Affairs, Commander of the EFCC, CE Wilson Uwujaren, during a media briefing on two separate scams currently under investigation.
Uwujaren disclosed that one new-generation commercial bank and six fintech and microfinance institutions played enabling roles in the fraudulent activities, allowing scammers to exploit Nigeria’s financial system.
According to him, the first scheme involved a fake airline discount operation, designed to deceive unsuspecting travelers, particularly those booking international flights. Fraudsters advertised what appeared to be discounted tickets from a foreign airline and structured the payment process to make victims believe their money was being paid directly to the airline. Once payment was made, however, the victims’ bank accounts were swiftly drained.
The EFCC revealed that over 700 people fell victim to this scheme, losing a total of ₦651,097,755. Although the Commission managed to recover and refund ₦33,628,000 to some victims, Uwujaren warned that the fraudsters mostly foreign-based are now converting stolen funds into cryptocurrency and transferring them through platforms such as Bybit to avoid detection.
The second and more extensive scheme involved Fred and Farid Investment Limited (FF Investment), which allegedly operated bogus investment packages that attracted unsuspecting Nigerians. Investigations showed that more than 200,000 victims were affected, with fraudsters carting away ₦18,088,901,272.35 through nine different companies offering various fake investment opportunities.
In total, over 900 Nigerians were reportedly defrauded through schemes linked to compromised banking channels.
Uwujaren stated that the scams were largely orchestrated by foreign nationals, working with three Nigerian collaborators who have since been arrested and arraigned in court.
Further details were provided by Abdulkarim Chukkol, EFCC Director of Investigations, and Michael Wetcas, Acting Director of the Abuja Zonal Directorate. They explained that certain financial institutions blatantly ignored standard banking procedures, enabling fraudsters to convert illicit funds into digital assets and transfer them abroad.
The EFCC disclosed that ₦18.74 billion passed through Nigeria’s financial system without proper customer due diligence. More troubling, investigations revealed that cryptocurrency transactions worth ₦162 billion were processed through a single new-generation bank without adequate scrutiny. In one extreme case, a single customer reportedly operated 960 accounts within the same bank, all allegedly used for fraudulent activities.
The Commission has urged regulatory authorities to enforce strict compliance with financial regulations, including Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs). It called for banks, fintechs, and microfinance institutions found to be aiding fraud to be suspended and referred to the EFCC for investigation and possible prosecution.
The EFCC warned that failure by financial institutions to monitor suspicious or structured transactions would no longer be tolerated. It reaffirmed its commitment to combating money laundering and urged banks and fintech firms to strengthen their internal controls to prevent further economic losses and systemic abuse.
