Nigeria reports rise in digital fraud cases as financial crimes surge by 45%
The Central Bank of Nigeria reported a 45% increase in fraud cases within the past year, mainly involving digital platforms.
Digital financial crimes have exploited regulatory gaps, encompassing schemes using cryptocurrencies and tokenized assets.
Over $56 billion in cryptocurrency transactions were recorded in Nigeria, highlighting its leading role in Africa's digital economy.
In a development that points to serious regulatory gaps in Nigeria's digital economy, 70% of the losses from these crimes were traced to digital platforms, many of which operate outside regulatory oversight.
CBN Governor Olayemi Cardoso, represented by Deputy Governor Muhammad Sani Abdullahi, made the disclosure during a public lecture organized by the Economic and Financial Crimes Commission (EFCC) in Abuja on July 10.
He cited data from the CBN's 2024 Financial Stability Report, noting that the digital finance boom while expanding financial inclusion has also introduced serious vulnerabilities into the system.
According to the CBN, over $56 billion worth of cryptocurrency transactions took place in Nigeria between July 2022 and June 2023, placing the country at the forefront of digital finance on the continent.
However, the rapid pace of innovation is also being exploited by criminal networks, many of which run unchecked on unregulated platforms. At least 30 fraudulent investment schemes mimicking legitimate digital assets have already been flagged by relevant agencies.
CBN, SEC warn of rising scams threatening market trust
While digital services have made payments and investing easier for Nigerians, they have also become a new frontier for fraud. The CBN pointed out that scammers are increasingly leveraging digital currencies and tokenized assets to lure the public into Ponzi-style operations.
These schemes, often disguised as legitimate investments, not only threaten personal wealth but also put the financial system's integrity at risk.
Echoing the CBN's concerns, the Director General of the Securities and Exchange Commission (SEC), Emomotiti Agama, warned that virtual asset scams are fast becoming a major obstacle to investor protection.
He said that such scams do not merely result in financial loss, they chip away at public trust and create long-term damage to market stability.
Officials link fraud to social values, warn of long-term harm
Highlighting the broader consequences of fraud, Director General of the National Orientation Agency (NOA), Malam Lanre Issa-Onilu, warned that financial crimes are not just about economic figures, they leave lasting scars on the lives of everyday Nigerians.
According to him, each stolen Naira could mean a child forced out of school, a business ruined, or a family's livelihood destroyed.
Issa-Onilu revealed that the NOA is leading a national campaign to challenge the growing 'get-rich-quick' mindset, which he believes fuels susceptibility to scams.
The campaign, which has been running for months, seeks to instill values of patience, hard work, and integrity particularly among young Nigerians.
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USA Today
3 hours ago
- USA Today
How Trump's personal aesthetic is redefining White House décor: 'I picked it all myself'
The president's personal design choices are clear as the Oval Office and the White House grounds get a makeover. 'It keeps my real estate juices flowing,' he says. WASHINGTON - Donald Trump once said real estate runs in his blood. In the late 1970s, he made a splashy entrance into the New York City real estate scene with the glitzy transformation of the crumbling Hotel Commodore into the Grand Hyatt on Fifth Avenue. When he bought Mar-a-Lago, the South Florida estate built for socialite Marjorie Merriweather Post, he added a 20,000-square-foot ballroom. In Washington, D.C., he turned the city's historic Old Post Office into a luxury hotel. Now 50 years on, he has a new pet project: 1600 Pennsylvania Avenue. Six months since he moved back into the White House, Trump's Oval Office is bathed in a sea of gold and gives a glimpse of his maximalist design approach. Gold-colored appliqués on the fireplace, gilded mirrors and ornate Rococo-style 18th and 19th century dessert stands and flower vases from London and France sit on the mantle. The walls are choc-a-block with paintings of former presidents in heavily ornate gold frames. The Cabinet Room has been outfitted with new ceiling medallions and a grandfather clock. 'I picked it all myself," he said. "I'm very proud of it." There's even a painting of Trump by an 87-year-old artist who said he was surprised to find out his work was being showcased in the West Wing. Meanwhile, Trump has also ripped up the sod in the Rose Garden in favor of a 'gorgeous stone' patio − work paid for by the same nonprofit that funded the Washington Monument's restoration work after a 2011 earthquake − and announced plans to build a ballroom in the White House. He recently erected two 88-foot-tall flagpoles on the south and north lawns of the White House. To be sure, presidents for decades have put their own personal touches on the Oval Office and the White House. President Franklin D. Roosevelt built an indoor swimming pool for physical therapy while coping with polio and President Richard Nixon installed a one-lane bowling alley at the White House's adjacent Old Executive Office Building. The Oval Office often gets new carpet and other furnishings for new presidents. Under Joe Biden, it sported a decidedly muted and understated look. Swedish ivy that has been in the Oval Office for decades graced the fireplace mantle, busts of famous Civil Rights leaders sat on desks and a few gold-framed portraits of past presidents hung on the walls. But for Trump, the work feels far more personal. 'It keeps my real estate juices flowing,' he told a reporter in February. Penchant for gold One common thread that runs through most of the interior redecoration efforts: a penchant for gold. During a recent meeting in the Cabinet Room, Trump waxed poetic about 'gold-leafing' the trims, the need for decorative ceiling medallions around hanging lights and finding the right frames for the new portraits of presidents that adorn the room's walls. Barbara Res, a former vice president at Trump Organization who oversaw construction, has long been familiar with Trump's fascination with the color gold. While working on projects such as the Trump Tower and Plaza Hotel, he had been adamant about incorporating polished bronze and brass which can give the appearance of gold, she said. Public areas such as atriums, ballrooms and restaurants were awash with polished bronze or brass on door frames, railings, elevators and ceilings. 'He used the word 'class' a lot, and it was a high-class thing for him,' Res told USA TODAY. 'It conveyed an illusion of taste and wealth, and that's why he wanted to gild everything.' For his Trump Tower triplex apartment in the early 80s, he hired the famed design veteran Angelo Donghia to do up the place. Taking into consideration Trump's favorite color and after trying to reason with him ("that's the worst thing you can do with Donald," said Res), Donghia introduced subtle gold touches throughout. 'It wasn't normal, but it was almost normal,' Res said with a laugh. Trump's sensibility for 'highly polished metals' went into overdrive after he visited Russia in the late 1980s, touring such places as the Hermitage State Museum and the Winter Palace, Res said. 'He came back, and he changed everything,' she said. 'He hired a guy who was a decorator for the high-roller suites in casinos. They have a lot of gold and mirrors everywhere.' After the apartment was done, Res, who then worked in the 58-story Midtown Manhattan building, said Trump brought her up to show her the remodeled place and asked her what she thought of it. 'I said 'how can you sleep here?,' she said. 'He was highly insulted by it.' Trump has always had an eye for design details. On his recent presidential visit to Qatar, he admired the white marble in a palace, saying it was 'very hard to buy.' 'As a construction person…this is perfect marble. This is what they call 'perfecto',' he said. Decorating the White House Now, as commander-in-chief, Trump has access to the White House Vault. A treasure trove of silver and bronze gilded objects he may have marveled at in palaces and museums around the world is now at his disposal. And he is not wasting his chance to play decorator. During the June Cabinet meeting, he said he had been spending a lot of time there, scooping up pieces he might call perfecto. 'The vaults are where we have a lot of great pictures and artwork,' he said, before offering insights into his obsession with right-sized and right-looking frames. 'I'm a frame person. Sometimes, I like frames more than I like the pictures,' he said. During Canadian Prime Minister Mark Carney's visit to the White House in May, Trump sought to highlight his efforts. 'You see the new and improved Oval Office as it becomes more and more beautiful with love,' he said. 'You know, we handle it with great love and 24 karat gold.' Other than gold, the president also favors patriotic touches as design flourishes. A copy of the Declaration of Independence occupies pride of place in the Oval Office, placed behind two blue velvet curtains that hang from a gold-colored rod. There are also some bright and cheerful-looking design elements such as colorful military campaign ribbons on the flags. A painting of Trump flanked by fellow Republican presidents Abraham Lincoln and Ronald Reagan hangs in the corridor close to the Oval Office by artist Dick Bobnick. When USA TODAY tracked down Bobnick, the 87-year-old artist based in Burnsville, Minnesota, said he had no idea his work was gracing the walls of the West Wing. He said he'd sent a photo print to the White House but never heard back. The artist, who is a Trump supporter, said he wanted to portray 'three of the strongest, most influential presidents this country has ever had at some of the most tumultuous times.' Bobnick, who has never visited Washington D.C., said he was 'flattered' the print had made an impression. 'I still have the original,' he said. Trump also believes the White House grounds are in need for improvement. The installation of the flagpoles on the White House lawns in June cost about $50,000 each, which Trump said he'd paid for himself. Congress gives every new president an allowance of $100,000 to refurbish the private residence and the Oval Office, for things such as furnishings and curtains. Work is currently in progress on the Rose Garden, which is located just outside the Oval Office, and where bilateral meetings with world leaders and news conferences are often held. The manicured lawn was ripped up to make way for a stone patio, like the one in Mar-a-Lago. Trump said he reached the decision after watching women in high heels at events struggling on the muddy lawn. The foliage, including the 200 rose bushes planted during a 2020 renovation overseen by First lady Melania Trump, will not be disturbed. "President Trump is a builder at heart, and he wants to help make the White House as exceptional as possible for generations of Americans to come," White House Press Secretary Karoline Leavitt told USA TODAY. The Rose Garden project, which is slated for completion in August, is funded by the Trust for the National Mall, a nonpartisan, nonprofit organization that has sponsored more than $75 million in restoration projects with the National Park Service since 2007. Some projects they have led include $22 million for the design and construction of the U.S. Park Police Horse Stables and Education Center on the National Mall in 2023 and a $7.5 million restoration of the Washington Monument after a 2011 earthquake. Julie Moore, a spokesperson for the nonprofit, said it accepts private donations to support the National Park Service's projects at the White House gardens not supported by federal funding. Moore said the project will not use taxpayer dollars but declined to name donors saying they have chosen to remain anonymous. Moore said the funds for the project had already been secured. A White House ballroom? Trump's next project, if it gets off the ground, promises be a grand one — and one that he has, offered to pay for himself. Trump first floated the idea for a ballroom, like the one in Mar-a-Lago, during his first run for president in 2016. The Obama administration confirmed to USA TODAY in 2016 that Trump had offered to spend $100 million on a new White House ballroom, but that the offer was quickly rejected. Back then, Trump derided White House events for foreign dignitaries held in tents, saying that was an inappropriate way to entertain them. State dinners are generally held in the East Room, which at 3,000 square feet is the biggest of the state rooms and the only one that runs the entire width of the executive mansion. It's also where dances, receptions, concerts and news conferences are held. During an executive signing in the East Room in February, Trump recalled his offers to both Obama and Biden. 'This was going to be the reception room,' he said referring to his idea for a revamped East Room that would have served as the entrance to the ballroom he proposed. He said the East Room felt "too crowded." In June, Trump announced in a Truth Social post that he had 'inspected" the site, which according to a White House official, is located on the east side of the White House. Trump also highlighted his construction and real estate credentials in the post, saying no president before him had "any knowledge or experience in doing such things." Leavitt said "discussions about how to execute this plan (for a ballroom) are ongoing." Trump's day job may have changed to more weighty subjects, but passion projects from his former life are still what bring him joy, he recently mused on Truth Social. "These are the 'fun' projects I do while thinking about the World Economy, the United States, China, Russia, and lots of other Countries, places, and events," he wrote. Swapna Venugopal Ramaswamy is a White House correspondent for USA TODAY. You can follow her on X @SwapnaVenugopal
Yahoo
8 hours ago
- Yahoo
Christine Hunsicker Indicted in $300M Fashion Rental Fraud Case
The next shoe has fallen for Christine Hunsicker — who built CaaStle up to be the future of fashion rental only to have it all disappear into scandal, a Chapter 7 liquidation, a host of lawsuits and, now, a $300 million federal indictment for fraud. The U.S. Attorney's office in Manhattan unsealed an indictment against Hunsicker on Friday, laying out charges of wire fraud, securities fraud, money laundering, making false statements to a financial institution and aggravated identity theft. More from WWD CaaStle Files for Chapter 7 Bankruptcy, Setting Up Liquidation Vince Meets Expectations With Slight Q1 Declines CaaStle Meltdown: P180 Sues 'The Hunsicker Enterprise' for Conspiracy Hunsicker, 48, surrendered herself to authorities on Friday morning and was due to appear before a U.S. magistrate judge later in the day. The wire fraud, securities fraud and money laundering charges each carry a maximum sentence of 20 years in prison while the making false statements to a financial institution charge could cost her as much as 30 years in prison. A lawyer representing her on a separate federal case did not immediately return a WWD request for comment. Not very long ago Hunsicker was an on-the-rise entrepreneur in fashion, very practiced at selling herself and the future of rental and seen as a very smart fundraiser. More than a little too smart, according to the indictment, a separate suit by the Securities and Exchange Commission on Friday and pending cases against her and CaaStle in federal and New York state court. While a certain amount of hyperbole is generally tolerated when chief executive officers of private companies tout their businesses and cite revenue figures that are, well, optimistic, things necessarily get real and the financials are laid bare when investors buy in. But according to the growing stack of legal paperwork, Hunsicker was not just tiptoeing across the line, but sprinting past it, doctoring audit reports, falsifying other documents, faking a screen shot of CaaStle's bank accounts and overstating revenues by more than 7,300 percent. 'Christine Hunsicker allegedly submitted fraudulent financial statements to swindle investors and banks of more than $300 million,' FBI assistant director in charge Christopher Raia said in a statement Friday. 'This alleged scheme was stitched together with repeated deception and misinformation, ultimately betraying the trust of the defendant's clients.' The indictment shines a harsh light on Hunsicker, but might take some of the heat off of CaaStle's board, which was responsible for overseeing her. 'From the indictment, I think the board gets a little relief,' said Douglas Hand, an attorney who specializes in fashion. 'Hunsicker was really rogue here, beyond what a board or audit committee could easily catch. You don't often see this kind of egregious behavior in fashion deals but often do from tech deals — it underscores for me that the company was a tech platform first and foremost.' While there are any number of people in tech and fashion looking to raise money for their companies, Hunsicker was much more successful than most, selling her dreams to well-known and sophisticated players, reportedly investor Bill Ackman among them. 'Hunsicker solicited investments from prominent venture capitalists — including investors located in Manhattan, New York — and, at times, valued the CaaStle business at more than $1.4 billion,' the attorney general's statement said. 'In fact, and as Hunsicker well knew, CaaStle was in financial distress with limited available cash and significant expenses.' In one case, Hunsicker sent an investor an income statement showing CaaStle had an operating profit of nearly $24 million in the second quarter of 2023, when operating profits actually tallied less than $30,000. She is charged with fraudulently inducing more than $275 million in investments between February 2019 and March this year — more than half the $520.9 million CaaStle raised since it was founded 14 years ago. There were some close calls along the way. In October 2023, Hunsicker was almost caught when an auditor approached her about a false report that she gave to an investor. 'During a call with the audit firm, Hunsicker falsely claimed that she had created the fake audit in connection with a lecture that she gave at Princeton University, and that sending the audit to Investor-2 had been a one-time error, unrelated to the solicitation of any investment,' the indictment said. 'In fact, there was no such lecture, and Hunsicker had provided two fabricated audits to Investor-2 while soliciting an investment from Investor-2. Just a few hours before the call with the audit firm, Hunsicker had conducted internet searches for 'fraud,' 'created an audit firm fake.'' A year later, Hunsicker was out in the market with a new venture — P180, a partnership with industry veteran Brendan Hoffman. Hoffman was keen to invest in fashion brands, plug them into CaaStle and use rental to boost profits by side stepping steep markdowns on slow-moving inventory. P180 did start to do its dealmaking, linking up with Altuzarra last year. But as P180 was gearing up for its biggest deal — buying control of the publicly traded Vince Holdings — Hunsicker's role at CaaStle was already unraveling. She was removed as chairman of CaaStle in December and, although she remained chief executive officer, she was prohibited from taking any actions on behalf of the company. Hunsicker is alleged to have had other motives for P180. The government said Hunsicker 'intended to sell millions of P180 securities — in the form of shares and convertible notes — to existing CaaStle investors and then to funnel that money back to CaaStle disguised as payments by P180 for the use of CaaStle's technology.' 'But just as she had done to raise money for CaaStle, Hunsicker attempted to raise money for P180 by providing prospective investors with false information regarding CaaStle's commercial success,' the indictment said. 'In addition to repeating affirmative misstatements about CaaStle's revenue, income, and operating profit, Hunsicker also failed to disclose that her prior representations regarding CaaStle's financial performance — including those made through fake documents – had been false and thus that P180 would not have the strong commercial engine in CaaStle that Hunsicker claimed.' Hunsicker used false information about CaaStle's success to raise about $30 million for P180, as well as a $20 million personal loan from a bank, according to the indictment. Even as the wheels were coming off, Hunsicker tried to sell $19 million in CaaStle shares in February to an investor, whom she continued to court even after law enforcement officials seized her electronic devices in March. When P180 sued the rental company in New York state court in April, the company said: 'Nothing about CaaStle was true. CaaStle is one of the largest frauds in history and will live in infamy alongside the likes of Theranos, [Bernie] Madoff and Enron.' CaaStle filed for Chapter 7 bankruptcy on June 20 and is expected to be liquidated. For Hunsicker, who was once a judge on a 'Project Runway' spin-off, featured on Crain's New York Business '40 Under 40' list and selected as one of Inc.'s 'Most Impressive Women Entrepreneurs,' it's been a hard fall and one that is still reverberating through fashion — although without the impact that it would have had if CaaStle's business were really as large as advertised. 'Given that both fashion brands and women entrepreneurs have a harder time attracting investment capital than stereotypical tech guys with a startup, this may have indirect negative effects for the industry,' said Susan Scafidi, founder and director of the Fashion Law Institute at Fordham Law School. 'Whatever the ultimate truth of the allegations, it's sad to see another female founder go up in flames.' 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New York Post
9 hours ago
- New York Post
Mob-tied hockey boss returns to the rink: ‘Intimidation never goes out of style'
The boss is back and he's ready to clean up the trash. AJ Galante, the teenager behind the mob-tied pro hockey team of Netflix fame, is back in the game as the general manager of the Danbury Hat Tricks, an entry-level pro team based in Connecticut. 'I believe there's still a place in the game for toughness,' Galante, 38, told The Post. 3 AJ Galante, 38, who was the teenager behind the mob-tied pro hockey team of Netflix game has returned to the sport. Danbury Hat Tricks/X 'Intimidation never goes out of style, man, and you when you have that you have that X factor.' In 2021, the story of how Galante's father, Jimmy, inserted his son as the general manager of the Danbury Trashers, named after the family's garbage-hauling business, became the stuff of Netflix gold. The film recounts how Trashers players were treated like big league stars and were even given 'no-show jobs' and under-the-table money — until the FBI started digging through the garbage. In June 2008, Galante Sr. admitted to charges of racketeering, conspiracy to commit wire fraud, and defrauding the Internal Revenue Service. He was also forced to forfeit interest in 25 different garbage-related businesses, estimated to be worth more than $100 million. 3 Galante is now the General Manager of the Danbury Hat Tricks, a professional hockey team based in Danbury, Connecticut. Danbury Hat Tricks/X Galante Sr. was released in 2014 after serving a seven-year sentence. 'It was a sad day when the Trashers folded, but the legacy still lives on, and I'm excited to build on that history with the Hat Tricks,' said the younger Galante, now a married father of two. Following the release of the Netflix film, demand grew for Danbury Trashers jerseys, with even rappers like Drake and Fabolous spotted wearing the team's sweater, which features demonic eyes peeking out of a trash can. 3 Galante told The Post, 'I believe there's still a place in the game for toughness.' Danbury Hat Tricks/X Since then, Galante has run a Danbury boxing gym, helped develop a UFC-style hockey fight circuit called Ice Wars, and most recently served as the Hat Tricks' senior advisor to the previous general manager. The Hat Tricks, who are members of the Federal Prospects Hockey League, open their season on Oct.10 at Danbury Arena. 'It's going to be the 20 years later movie sequel,' said Galante. 'I'm giving it my all.' While Galante won't shy away from the on-ice toughness that made the Danbury Trashers famous, he says he wants to focus on winning. 'I know what the fans here are starving for, and we want to bring the toughness back,' Galante says. 'At the same time, if we're not winning, it means nothing.'
