EFCC Uncovers N18 Billion Fraud Involving Bank, Fintechs

The Economic and Financial Crimes Commission (EFCC) has charged a new generation bank and six fintech and microfinance firms with facilitating a fraudulent scheme that allegedly defrauded Nigerians of over N18 billion. The EFCC disclosed these findings during a press conference in Abuja on Wednesday, highlighting the role of a foreign national and several accomplices in orchestrating the fraud through an airline discount scheme and a fraudulent investment plan.

According to EFCC’s Director of Public Affairs, Wilson Uwujaren, approximately 900 Nigerians have fallen victim to these scams over the past two years. Uwujaren expressed concern over the complicity of certain financial institutions in these fraudulent activities. He stated, “Last year was marked by significant achievements for the Commission, and we are beginning 2026 by sharing advances we made in investigating two major types of criminality impacting over 900,000 Nigerians.”

The first scheme involved a syndicate that employed an airline discount program to deceive victims. Initially, only seven victims were reported, but investigations revealed that more than 700 individuals have been scammed, resulting in a combined loss of approximately N651,097,755. The EFCC has managed to recover and return N33,628,000 to some victims of this scheme.

Investment Fraud Scheme Exposed

In addition to the airline discount fraud, the EFCC is investigating an investment scam linked to a company named Fred and Farid Investment Limited. This scheme has reportedly defrauded over 200,000 victims, amassing losses of around N18,088,901,272.35 through nine companies. These firms include Credio Banco Limited, Deliberty Rock Limited, Liam Chumeks Global Service, among others.

The EFCC noted that foreign nationals are behind these schemes, with three Nigerian accomplices already arrested and charged. The masterminds, however, remain at large. Uwujaren emphasized the alarming nature of these fraudulent activities, stating, “One striking feature of all these schemes is the compromise of the nation’s financial space by some financial institutions.”

Furthermore, the EFCC reported that a total of N18,739,999,027.35 was transferred through the financial system without appropriate customer due diligence from banks. Investigations revealed that cryptocurrency transactions exceeding N162 billion were processed through a new generation bank without proper oversight. One customer allegedly operated 960 accounts in another bank, all utilized for fraudulent activities.

Call for Stricter Regulatory Compliance

In light of these findings, the EFCC has called on regulatory bodies to enforce compliance among financial institutions regarding Know Your Customer (KYC) regulations, Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs). Uwujaren stated, “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.”

He expressed that negligence and failure to monitor suspicious transactions must no longer be tolerated. The EFCC remains committed to combating money laundering and fraudulent activities, urging financial institutions to strengthen their operational protocols to prevent further economic damage.

As investigations continue, the EFCC aims to bring all perpetrators to justice, reinforcing the importance of safeguarding the financial integrity of the nation.