Investment Fraud Epidemic: EFCC Warns Nigerians To Beware Of Digital Swindlers
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The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has issued a stern warning to Nigerians about the growing menace of virtual asset and investment fraud, urging the public to exercise extreme caution before putting their money into unfamiliar schemes.....KINDLY READ THE FULL STORY HERE▶
Speaking at a public lecture held at the EFCC headquarters in Abuja to commemorate the 2025 African Union Anti-Corruption Day, themed “Understanding Virtual Asset and Investment Fraud,” Olukoyede emphasized the urgent need for vigilance from both regulators and investors as scams rooted in digital platforms multiply nationwide.
According to NIVONEWS, the EFCC boss lamented that many of these frauds—especially those involving cryptocurrency and other virtual assets—succeed not only due to their sophistication but also because of investors’ failure to conduct basic due diligence. He referenced the now-notorious CBEX scam, noting that the financial losses endured by victims could have been avoided if early warning signs had been heeded.
He pointed out that the public’s negligence plays a critical role in enabling fraudsters, stating, “No scam thrives without some level of complicity or indifference from the public.” Olukoyede also revealed that corrupt politicians have increasingly turned to virtual assets to conceal illicit wealth, using crypto wallets to conduct transactions beyond the reach of traditional financial oversight.
While reaffirming that virtual assets are not inherently illegal, he cautioned that their misuse poses a significant threat to Nigeria’s anti-corruption fight. Nonetheless, he expressed confidence in the EFCC’s growing ability to tackle the challenge through enhanced intelligence, specialized training, and successful prosecutions, including breakthroughs in the CBEX case.
In a message delivered on his behalf, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, represented by Deputy Governor for Economic Policy Muhammad Sani Abdullahi, highlighted the dual-edged nature of Nigeria’s digital finance boom. According to NIVONEWS, Cardoso revealed that over $56 billion worth of crypto-related transactions occurred in Nigeria between July 2022 and June 2023, making the country Africa’s digital transaction leader—but also exposing it to heightened fraud risks.
He cited the CBN’s 2024 Financial Stability Report, which recorded a 45% surge in fraud incidents—70% of which were traced to digital platforms, including unregulated crypto and investment schemes. More than 30 fraudulent projects exploiting cryptocurrency hype were flagged by regulators, posing serious risks to investor confidence and Nigeria’s financial reputation globally.
Emomotiti Agama, Director-General of the Securities and Exchange Commission (SEC), echoed the concerns, warning that new digital threats like virtual asset fraud are undermining market trust and diverting critical development funds. He reaffirmed SEC’s commitment to updating regulations, increasing public education, and collaborating globally to curb illicit financial flows.
Also speaking at the event, NOA Director-General Lanre Issa-Onilu described financial fraud as a deeply personal crime that devastates households and businesses. “Every naira lost means a child may drop out of school or a business may never recover,” he said. The NOA, he added, is launching a national values reorientation campaign targeting youth and pushing back against the dangerous “get-rich-quick” mentality.
According to NIVONEWS, the Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, warned that while virtual assets can drive growth, they’re increasingly used to launder money and finance crime. He stressed the importance of stronger coordination among regulators and reiterated CAC’s commitment to corporate accountability.
A detailed presentation by ACE II Dein Whyte, Head of EFCC’s Cybercrime Section, offered insights into how virtual assets—including cryptocurrencies like Bitcoin, Ethereum, and NFTs—are weaponized for fraud. He emphasized the importance of public education on spotting red flags and avoiding high-risk investments.
Similar town halls and lectures were simultaneously held across EFCC zonal offices, underscoring the agency’s nationwide push to combat digital financial crimes. The EFCC reaffirmed that these outreach efforts form part of a broader campaign to arm Nigerians with the knowledge they need to protect their finances in an increasingly digital world.
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