EFCC cautions Nigerians as virtual asset, investment fraud surge nationwide

 BLESSING OMALE, Abuja

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has issued a strong warning to Nigerians, urging them to be cautious about where and how they invest their money to avoid falling victim to fraudulent schemes.

Speaking during a public lecture held at the EFCC headquarters in Abuja to mark the 2025 African Union Anti-Corruption Day, themed “Understanding Virtual Asset and Investment Fraud,” Olukoyede said the growing trend of digital and investment scams requires urgent attention from both regulators and the general public.

He emphasized that many fraudulent schemes, particularly those involving virtual assets, often succeed because investors fail to carry out proper due diligence before parting with their money.

Citing the now-infamous CBEX scam as a case in point, Olukoyede said the unfortunate losses suffered by investors could have been avoided.

He stressed that the public often plays a role in enabling fraudsters by ignoring early warning signs and not reporting suspicious schemes until it’s too late. According to him, no scam can thrive without a level of negligence from the investing public.

Olukoyede raised concerns about the growing use of virtual assets by corrupt politicians to conceal stolen funds and evade detection.

He revealed that the EFCC has uncovered several cases where illicit wealth is being hidden in cryptocurrency wallets and used to facilitate transactions beyond the reach of traditional financial monitoring systems.

While acknowledging that virtual assets are not inherently criminal, he warned that when misused, they become powerful tools for corruption and financial crime.

Despite these concerns, the EFCC chairman expressed confidence in the Commission’s capacity to deal with the challenges posed by virtual asset fraud.

He said the EFCC has made significant progress through intelligence gathering, specialized training, and successful prosecutions, including the recent breakthroughs in investigating and prosecuting the CBEX operators.

In a message delivered on his behalf, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the country’s rapid adoption of digital financial services, including cryptocurrencies, has brought both benefits and risks.

Represented by the Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, Cardoso noted that over $56 billion in crypto-related transactions were recorded in Nigeria between July 2022 and June 2023.

While this cements Nigeria’s position as Africa’s digital transaction leader, it has also contributed to a sharp rise in fraud cases.

Cardoso pointed to the CBN’s 2024 Financial Stability Report, which recorded a 45 percent increase in financial fraud incidents, with 70 percent of the losses traced to digital channels, including unregulated virtual asset platforms.

He also disclosed that more than 30 fraudulent investment schemes exploiting the hype around digital currencies had been flagged by regulatory authorities.

These developments, he said, not only threaten consumer confidence but also damage the country’s reputation within the global financial system.

Director-General of the Securities and Exchange Commission (SEC), Emomotiti Agama, described corruption as a major barrier to economic growth and development in Nigeria and across Africa.

He noted that as digital innovation reshapes global financial systems, new threats such as virtual asset fraud and sophisticated investment scams are emerging.

These challenges, he said, undermine market integrity and investor trust, ultimately diverting resources meant for sustainable development.

Agama reaffirmed SEC’s commitment to increasing public awareness about investment risks, updating regulatory frameworks to match the pace of financial innovation, and strengthening international cooperation to combat illicit financial flows.

He also explained that while the CBN regulates virtual assets used for payment, the SEC oversees those classified as securities or investment products.

Also speaking at the event, Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, praised the EFCC’s continued efforts to protect Nigerians from evolving financial crimes. He described fraud as a deeply personal crime that can destroy lives and livelihoods.

According to him, every naira lost to fraud has real consequences, such as a child being withdrawn from school or a business shutting down.

He emphasized that the NOA is responding to the rise in fraudulent schemes with a national value reorientation campaign, particularly targeting the youth and challenging the “get-rich-quick” mentality.

Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, also addressed the audience, warning that while virtual assets can drive economic growth, they are increasingly being exploited for money laundering and financial manipulation.

He stressed the importance of proactive collaboration among regulatory bodies and reaffirmed CAC’s commitment to upholding transparency and corporate accountability in the virtual financial space.

A paper presentation by ACE II Dein Whyte, Head of the Cybercrime Section at EFCC headquarters, provided insights into the nature of virtual assets and how they are being used to commit fraud.

He defined virtual assets as digital representations of value used for transactions, investment, or as a medium of exchange. He explained that these include cryptocurrencies such as Bitcoin, Ethereum, Ripple, and Litecoin, as well as non-fungible tokens (NFTs), which represent ownership of assets on digital platforms.

Whyte emphasized that the key to combating this growing crime typology lies in better public understanding of red flags and risky schemes.

The presentation was followed by a lively question-and-answer session, with participants engaging in discussions around investment safety and virtual asset regulation.

Across all EFCC zonal offices, similar lectures and discussions were held to spotlight the rising threat of virtual asset and investment fraud.

The Commission says these efforts form part of a national campaign to raise awareness and equip citizens with the knowledge they need to protect their money in an increasingly digital world.

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