EFCC indicts 9 fintech and investment firms in ₦18bn scam

• EFCC links 9 fintech and investment-related companies to a ₦18 billion investment scam
• Over 200,000 Nigerians are reportedly affected
• Three local accomplices arrested; foreign masterminds remain at large
• Some banks and fintechs allegedly allowed fraudsters to move funds without proper checks, including crypto transactions

The Economic and Financial Crimes Commission (EFCC) has indicted nine fintech and investment-related companies in connection with a massive ₦18 billion scam that reportedly affected more than 200,000 Nigerians.

According to the EFCC, the scheme was orchestrated by foreign nationals working with a few local collaborators. They used fake airline discounts and bogus investment packages to trick unsuspecting victims. Three Nigerians have been arrested, while the main organisers are still at large.

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

EFCC explains how banks and fintechs got involved in the scam

EFCC officials also raised concerns about the role of financial institutions in the fraud. A new generation bank, along with six fintechs and microfinance firms, allegedly allowed fraudsters to move money without proper checks. Some of the funds were reportedly converted into cryptocurrency, making recovery more complicated.

Investigations revealed that a bank processed over N162 billion in unmonitored crypto transactions. Separately, a single customer held 960 accounts at another bank, purportedly for fraudulent activity.

Also read: N50bn Forex scam: EazzyTranzact CEO denies EFCC’s allegation amid legal tussle

The EFCC has recovered part of the stolen funds and returned some to victims, but the losses remain substantial. To prevent similar scams from happening again, the EFCC is urging regulators to more strictly enforce rules such as Know Your Customer (KYC), Customer Due Diligence (CDD), and the monitoring of suspicious transactions.

This event highlights significant weaknesses in Nigeria’s digital financial system as financial technology (fintech) and cryptocurrency services become more widespread. It serves as a stark warning to banks, fintech companies, and users: regulatory gaps can be exploited swiftly, with devastating consequences. Vigilance is no longer optional; it’s imperative.