Mkpoikana Udoma
Port Harcourt — The Economic and Financial Crimes Commission, EFCC, has raised the alarm over the role of some banks and fintechs in two massive fraudulent schemes that have defrauded Nigerians of over N18.7 billion.
Addressing the press in Abuja, the EFCC’s Director of Public Affairs, Wilson Uwujaren, said the commission discovered the schemes involved a combination of airline ticket discount scams and bogus investment arrangements.
“The first scheme involves airline discount fraud, where unsuspecting travelers are lured to believe they are paying foreign carriers for discounted tickets. Instead, their entire bank accounts are emptied,” Uwujaren explained.
According to the EFCC, over 700 victims have lost a total of N651 million through the airline scam, although N33.6 million has been recovered.
The second scheme, linked to Fred and Farid Investment Limited, FF Investment, defrauded over 200,000 Nigerians through bogus investment packages, raking in N18.08 billion across nine companies.
Uwujaren noted that foreign nationals orchestrated the fraud with the assistance of three Nigerian accomplices, all of whom have been arrested and charged.
Highlighting the role of financial institutions, EFCC directors Abdulkarim Chukkol and Michael Wetcas said, “A new generation bank and six fintechs and microfinance banks compromised banking procedures, enabling fraudsters to convert illicit funds into digital assets and move them to safe destinations.”
According to the EFCC, Investigations revealed that cryptocurrency transactions totaling N162 billion passed through a single new generation bank without proper due diligence.
Alarmingly, one customer maintained 960 accounts used exclusively for fraudulent purposes.
The EFCC has urged regulatory bodies to enforce strict compliance on Know Your Customer, KYC, Customer Due Diligence, CDD, and Suspicious Transaction Reporting, STRs, warning that financial institutions found aiding fraudsters would face suspension, investigation, and possible prosecution.
Uwujaren stressed, “Negligence by banks in monitoring suspicious transactions will no longer be tolerated. Financial institutions must firm up operational dynamics to save the nation from leakages and compromises bleeding the economy.”
The commission reaffirmed its commitment to combating money laundering and protecting Nigerians from sophisticated fraud schemes exploiting weaknesses in the country’s financial system.
