Banks, fintechs aiding fraudulent investments – EFCC

The Economic and Financial Crimes Commission (EFCC), on Thursday, accused some new generation banks, fintechs and micro finance banks of aiding fraudulent investments in Nigeria by defrauding Nigerians through what it described as “fraudulent schemes”.

The anti-graft agency said at least six fintechs are involved in the fraudulent schemes, noting that their negligence and compromise have ripped off some customers in two major fraudulent schemes over N18bn.

EFCC Director of Public Affairs, Wilson Uwujaren, at a press briefing in Abuja, called on regulatory bodies to compel financial institutions to comply with regulations.

Speaking on the N18bn fraudulent scheme, Uwujaren said the first scheme involved airline discount fraud through which fraudsters lure their victims to lose their hard-earned money.

He disclosed that over 700 victims have fallen into the trap of fraudsters through the scheme with a total loss of N651, 097, 755.00 to them.

According to him, the commission succeeded in recovering and returning N33,628,000.00 to victims of the scam, while cautioning Nigerians to be more vigilant.

Uwujaren revealed that foreign actors involved in the scheme are converting their illicit sleaze into cryptocurrency and moving it into safer destinations through Bybit.

He added, “A total sum of N18,088,901,272.35k was raked in through nine companies offering diverse investment packages. In all, more than 900 Nigerians have been fleeced by fraudsters through the connivance of banks.”

Uwujaren said that foreign nationals are behind the schemes, with three Nigerian accomplices who have been arrested and charged in court.

On the specific role of banks and Fintechs in the schemes, two other Directors of the EFCC, Abdulkarim Chukkol, Director of Investigations and Michael Wetcas, Acting Director, Abuja Zonal Directorate of the agency, explained that the compromise of the nation’s financial space was done by some financial institutions.

The Commission, however, charged regulatory bodies to suspend deposit money banks, fintechs, and micro finance banks found to be aiding and abetting fraudsters, and refer to the EFCC for thorough investigation and possible prosecution.

It also warned that negligence and failure to monitor suspicious and structured transactions by banks would no longer be allowed.

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