EFCC: Banks, fintechs helped siphon N18.7bn through weak KYC, due diligence

The Economic and Financial Crimes Commission (EFCC) has accused several banks, fintech firms and microfinance institutions of enabling a major fraud network by failing to enforce basic customer due diligence and Know Your Customer (KYC) rules.

At a media briefing in Abuja on Thursday, EFCC spokesman Wilson Uwujaren disclosed that investigations into two large-scale scams showed that financial institutions allowed suspicious transactions to pass through the system without proper checks.

According to Uwujaren, a total of ₦18.74 billion moved through the banking system without due diligence, with proceeds converted into digital assets and transferred to safe destinations without triggering red flags.

He revealed that one bank processed ₦162 billion in cryptocurrency transactions without conducting adequate KYC checks. In another case, a single customer was permitted to operate 960 accounts, all allegedly used for fraudulent activities.

“These institutions compromised standard banking procedures,” Uwujaren said. “Their negligence allowed fraudsters to convert stolen funds into digital assets and move them to safe destinations.”

Two major scams exposed

The EFCC said the funds were linked to two separate criminal schemes affecting over 900,000 Nigerians.

1. Airline discount scam The first scheme involved fake airline ticket discounts. Victims were lured with offers of heavily discounted tickets, made payments to accounts structured to appear legitimate, and later found their accounts drained.

Uwujaren said more than 700 victims lost ₦651.1 million, but only ₦33.6 million has been recovered so far.

He added that foreign nationals orchestrated the fraud, recruiting young Nigerians and using cryptocurrency, especially through the Bybit exchange, to move proceeds.

2. Fake investment scheme The second scam was linked to Fred and Farid Investment Limited (FF Investment) and eight other companies. The EFCC said the investment operation defrauded more than 200,000 Nigerians of ₦18.08 billion through fake investment packages.

Other companies named include Credio Banco Limited, Deliberty Rock Limited, Liam Chumeks Global Service, Ngwuoke Daniels Technology, Icons Autos and Import Merchant, Newpace Technology Services Limited, Primepath Ways Ventures Limited, Kaka Synergy Network Limited and Sunlight Tech Hub Services Limited.

Three Nigerian suspects have been arrested and charged to court, while the foreign masterminds remain at large.

EFCC warns financial institutions

Uwujaren warned that banks and fintech companies found to be aiding fraudsters could face suspension or prosecution.

He urged regulators to enforce stricter compliance with KYC, customer due diligence and suspicious transaction reporting.

“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” he said.

The EFCC added that it would intensify its crackdown on money laundering and the abuse of digital assets, signaling a renewed focus on institutional accountability in the financial sector.