Anti-graft agency uncovers massive airline ticket, investment scams; flags N162bn crypto transactions at single bank.
The Economic and Financial Crimes Commission (EFCC) has launched a sweeping investigation into multiple banks and financial technology companies for their alleged complicity in two major fraud schemes that defrauded Nigerians of N18.7 billion, exposing what officials called “deliberate breaches” of banking protocols.
Unveiling the findings on Thursday, EFCC’s Director of Public Affairs, Wilson Uwujaren, detailed two distinct operations: a fake airline ticket discount scam and a bogus investment scheme, both heavily facilitated by lapses within the financial sector.
The Scams: N651m Airline Fraud & N18bn Fake Investment
The first scheme targeted travelers through fraudulent discount offers for a foreign carrier. “The payment module is designed…that their victims would be convinced payment is made into the airline’s account,” Uwujaren explained. Instead, victims’ entire bank balances were emptied. Over 700 people lost N651,097,755 to this scam, with only N33.6 million recovered. The EFCC warned the fraud remains active, with foreign actors converting stolen funds to cryptocurrency via the Bybit exchange.
The second and far larger operation involved ‘Fred and Farid Investment Limited’ (FF Investment), which lured over 200,000 Nigerians with false promises. More than N18 billion was funneled through nine companies offering fake investment packages. Uwujaren stated that “more than 900 Nigerians were fleeced through the direct connivance of banks.” Foreign nationals masterminded the scheme alongside three arrested Nigerian accomplices.
Systemic Failures: 960 Accounts for One Customer, N162bn Crypto Flow
EFCC investigators presented a damning picture of institutional failure. Directors Abdulkarim Chukkol (Investigations) and Michael Wetcas (Abuja Zonal Directorate) stated that “a new generation bank and six Fintechs and Micro Finance Banks” clearly compromised procedures, allowing fraudsters to launder proceeds into digital assets.
Investigations revealed that N162 billion in cryptocurrency transactions passed through a single new-generation bank without proper checks. In an egregious case, one customer operated 960 accounts at the same bank, all allegedly used for fraud.
Regulatory Crackdown & Warnings
The EFCC declared that negligence enabling suspicious transactions “would no longer be allowed.” It called on financial regulators to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs) requirements. Any bank or fintech found aiding fraudsters should be suspended and prosecuted, the Commission warned.
Uwujaren urged financial institutions to strengthen internal controls, stating continued lapses expose the economy to “leakages and compromises.” The EFCC reaffirmed its commitment to protecting Nigeria’s financial system integrity as the probe continues.
