The Economic and Financial Crimes Commission (EFCC) has called for the suspension and prosecution of deposit money banks, Fintech companies, and microfinance banks accused of aiding and abetting fraudsters in defrauding Nigerians through large-scale financial scams.

The Director of Public Affairs at the Commission, Mr. Wilson Uwujaren, made the call in Abuja on the sidelines of a news briefing on negligence and alleged compromise within financial institutions, which he said had cost victims billions of naira.

Mr. Uwujaren disclosed that the Commission uncovered widespread compromise within Nigeria’s financial system, involving an N18.7 billion investment scam and fraudulent cryptocurrency transactions amounting to N162 billion.

He accused one new-generation bank, six Fintech firms, and several microfinance banks of facilitating the laundering of proceeds derived from criminal activities.

“It is worrisome that investigations by the Commission revealed that cryptocurrency transactions to the tune of N162 billion passed through a new-generation bank without any due diligence,” Mr. Uwujaren said.

“Investigations also showed that a single customer maintained 960 accounts in the same bank, all of which were used for fraudulent purposes.”

He stated that the affected financial institutions clearly compromised standard banking procedures, enabling fraudsters to convert illicit proceeds into digital assets and transfer them to safe destinations.

The EFCC, he said, was calling on regulatory bodies to compel financial institutions to comply strictly with regulations on Know Your Customer (KYC), Customer Due Diligence (CDD), Suspicious Transaction Reports (STRs), and related requirements.

“Deposit money banks, Fintechs, and microfinance banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” he said.

Mr. Uwujaren explained that the N18.7 billion investment scam fell into two categories. The first involved a syndicate of fraudsters who deployed an airline ticket discount scheme to lure victims.

According to him, the fraudsters advertised discounted ticket purchases for a foreign airline, with a payment module designed to convince victims that funds were being paid directly into the airline’s account.

“No sooner is the payment made than the passenger’s entire funds in his bank account are emptied,” he said.

Mr. Uwujaren revealed that more than 700 victims had fallen prey to the airline ticket scam, with total losses amounting to N651.1 million.

He added that the Commission had recovered and returned N33.63 million to victims of the scheme, while cautioning Nigerians to remain vigilant.

The second scheme involved a company identified as Fred and Farid Investment Limited, also known as FF Investment, which lured Nigerians into bogus investment arrangements.

“More than 200,000 victims have been defrauded in this regard. A total sum of N18.1 billion was raked in through nine companies offering diverse investment packages,” he said.

Mr. Uwujaren disclosed that foreign nationals were behind the schemes, working with three Nigerian accomplices who have since been arrested and charged to court.