EFCC Raises Alarm Over Banks’ Role in N18.7bn Airline Discount, Investment Fraud Schemes

The Economic and Financial Crimes Commission (EFCC) has uncovered widespread negligence and compromise by some banks and financial technology companies in two major fraudulent schemes that have cost Nigerians a total of N18.74 billion.
The revelation was made in Abuja on Thursday, January 22, 2026, by the Director of Public Affairs of the Commission, Commander of the EFCC, CE Wilson Uwujaren, while briefing journalists on the evolving tactics of fraudsters exploiting gaps in Nigeria’s financial system.
Uwujaren disclosed that one new-generation commercial bank and six Fintech and microfinance banks were implicated in aiding fraudsters through lapses in customer due diligence and transaction monitoring.
Airline Discount Scam
According to the EFCC, the first scheme involved an airline ticket discount fraud, designed to lure unsuspecting Nigerians—particularly foreign travellers—with fake promotional offers.
Fraudsters advertised discounted tickets purportedly linked to a foreign airline, using payment modules that falsely convinced victims that funds were being paid directly to the airline. Once payment was made, however, the victims’ bank accounts were immediately emptied.
Uwujaren revealed that over 700 victims fell prey to the scheme, losing a total of N651,097,755. Although the EFCC has recovered and refunded N33,628,000 to some victims, he warned that the perpetrators—largely foreign actors—are now converting stolen funds into cryptocurrency and moving them offshore through platforms such as Bybit.
Fraudulent Investment Scheme
The second scheme centred on Fred and Farid Investment Limited (FF Investment) and eight other associated companies, which promoted bogus investment packages to Nigerians.
Uwujaren stated that more than 200,000 victims were defrauded through the operation, with proceeds totalling N18,088,901,272.35. The investment fraud alone accounted for the bulk of the N18.7 billion loss.
He added that foreign nationals masterminded the scheme, working with three Nigerian accomplices who have been arrested and charged to court.
Banks, Fintechs Under Scrutiny
Further details were provided by Abdulkarim Chukkol, Director of Investigations, and Michael Wetcas, Acting Director of the EFCC’s Abuja Zonal Directorate. Both officials lamented the extent to which weak controls within some financial institutions enabled the crimes.
They revealed that N18.74 billion passed through the financial system without proper customer due diligence, allowing fraudsters to convert illicit proceeds into digital assets and transfer them to “safe destinations.”
More troubling, EFCC investigations showed that cryptocurrency transactions worth N162 billion were processed through a single new-generation bank without adequate scrutiny. In one instance, a single customer reportedly operated 960 accounts within the same bank, all allegedly used for fraudulent activities.
The Commission described the findings as deeply alarming and warned that banks and Fintech operators that compromise regulatory standards would be held accountable.