By Micah Jonah
January 22, 2026
The Economic and Financial Crimes Commission, EFCC, has raised the alarm over negligence and complicity of banks and Fintechs in two major fraudulent schemes that have defrauded Nigerians of a total of N18,739,999,027.35.
The disclosure was made in Abuja on Thursday, January 22, 2026, by the Commission’s Director of Public Affairs, Commander CE Wilson Uwujaren, while briefing the media on the modus operandi of fraudsters using the nation’s financial system.
Uwujaren said one new generation bank, alongside six Fintechs and Micro Finance Banks, have been implicated in facilitating the schemes.
The first scheme involved airline discount fraud in which unsuspecting victims are lured into losing their funds. Fraudsters advertise discounted tickets for foreign airlines and convince victims that their payments are made directly to the airline. Once the payment is made, the victims’ bank accounts are emptied.
Over 700 Nigerians have reportedly fallen victim to this scam, losing a total of N651,097,755. The EFCC has recovered and returned N33,628,000 to victims but warned that foreign perpetrators continue to convert illicit funds into cryptocurrency and transfer them to secure destinations using platforms such as Bybit.
The second scheme centers on a company named Fred and Farid Investment Limited, or FF Investment, which offered fraudulent investment opportunities. More than 200,000 Nigerians were defrauded, with a total of N18,088,901,272.35 moved through nine companies offering various investment packages. Uwujaren said foreign nationals orchestrated the schemes, aided by three Nigerian accomplices who have since been arrested and charged to court.
Further details on the role of financial institutions were provided by EFCC Directors Abdulkarim Chukkol, Director of Investigations, and Michael Wetcas, Acting Director of the Abuja Zonal Directorate. They explained that a new generation bank and six Fintechs and Micro Finance Banks compromised banking procedures, enabling fraudsters to convert their proceeds into digital assets and move them to safe destinations.
Investigations revealed that a total of N18,739,999,027.35 flowed through the financial system without proper customer due diligence. Alarmingly, cryptocurrency transactions amounting to N162 billion passed through one new generation bank without scrutiny. One individual was found to maintain 960 accounts in a single bank, all allegedly used for fraudulent activities.
The EFCC has called on regulatory authorities to enforce compliance with Know Your Customer, Customer Due Diligence, and Suspicious Transaction Report regulations. The Commission warned that any bank, Fintech, or Micro Finance Bank found aiding fraudsters will face suspension and referral for investigation and prosecution.
Uwujaren stressed that the EFCC remains committed to combating money laundering and financial crime. He urged financial institutions to strengthen internal controls and operational protocols to prevent leakages, protect the national economy from fraudulent actors.
