The Economic and Financial Crimes Commission (EFCC) has accused banks, fintech companies, and microfinance institutions of enabling large-scale fraud by failing to carry out basic customer checks, allowing an estimated N18.7 billion to pass through the financial system improperly.
Wilson Uwujaren, the commission’s director of public affairs, disclosed the findings during a media briefing in Abuja on Thursday, following investigations into two major fraud schemes affecting over 900,000 Nigerians.
Uwujaren said a “new generation bank,” six fintechs, and several microfinance banks compromised standard procedures, permitting fraud proceeds to be converted into digital assets and transferred without triggering red flags.
He revealed that cryptocurrency transactions worth N162 billion were processed through one bank without proper Know Your Customer (KYC) checks, while another bank allowed a single customer to operate 960 accounts used exclusively for fraud.
The first scheme involved a fake airline discount offer that emptied victims’ bank accounts, with over 700 people losing N651 million.
The second was a fake investment operation that defrauded more than 200,000 Nigerians of N18.08 billion through companies including Fred and Farid Investment Limited.
Uwujaren warned that financial institutions aiding fraud could face suspension and prosecution, urging regulators to enforce stricter compliance with due diligence and suspicious transaction reporting.
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