EFCC warns Nigerians on rising virtual asset, investment scams

Zawya

11-07-2025

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised the alarm over the growing threat of virtual asset and investment scams across Africa, warning that fraudsters are increasingly leveraging digital technologies to exploit unsuspecting investors.
The warning was delivered on Thursday through the Ilorin Zonal Director of the EFCC, Mr. Daniel Isei, during a public lecture marking the 2025 African Union Anti-Corruption Day in Ilorin.
The African Anti-Corruption Day, observed annually on July 11, aims to raise awareness about the dangers of corruption and to mobilize collective action against it. This year's theme focuses on the evolving nature of financial crimes in the digital age.
In his address, titled 'Understanding Virtual Assets & Investment Scams,' Olukoyede stated that Africa's fight against corruption is being undermined by a surge in illicit financial flows, with money laundering and virtual asset fraud topping the list.
He explained that virtual assets, including cryptocurrencies and digital tokens, are not inherently criminal but become dangerous tools in the hands of fraudsters.
'Technology is advancing rapidly, and while virtual assets were created for legitimate financial innovation, criminals are exploiting them for money laundering and fraudulent investments,' he said.
Olukoyede cited recent investigations revealing how politicians and corrupt individuals hide stolen funds in cryptocurrency wallets to evade detection. He also warned about the growing trend of fraudulent investment schemes that use virtual assets to lure desperate investors with promises of quick returns.
Highlighting the infamous CBEX scam, the EFCC Chairman described it as a case study of how ignorance and negligence among investors can fuel the success of fraudulent schemes.
'The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses,' he said. 'No investment scam can succeed without the negligence of the investing public.'
Despite the increasing complexity of virtual asset fraud, Olukoyede assured the public that the EFCC remains a step ahead through proactive intelligence gathering, continuous training, and operational breakthroughs. He noted that the agency has already recorded significant successes in investigating and prosecuting such crimes.
He emphasized the need for public enlightenment and stakeholder collaboration to tackle the menace.
'Virtual asset and investment fraud are preventable,' Olukoyede said. 'The key is education, vigilance, and timely reporting. This interactive forum is a step in the right direction.'
The EFCC Chairman also urged experts at the forum to demystify virtual assets for the benefit of ordinary Nigerians and help close the 'window of ignorance' that fraudsters exploit.
In his presentation, an Assistant Chief Superintendent of the EFCC, ACE II James Allison, highlighted the growing vulnerability of Nigerians to digital investment scams and cryptocurrency-related frauds.
In his lecture, titled 'Understanding Virtual Assets and Investment Fraud,' Allison explained how fraudsters are exploiting virtual assets such as cryptocurrencies, NFTs, and unregulated investment platforms to defraud unsuspecting members of the public.
'Fraudsters are increasingly taking advantage of people's lack of understanding of virtual assets. They dangle unbelievable returns on investment, create fake trading platforms, and often vanish without a trace once they secure their victims' money,' he said.
Allison cited real-life cases handled by the Commission, including instances where young Nigerians lost millions of naira to Ponzi schemes disguised as crypto-trading platforms. He listed common red flags such as guaranteed high returns, pressure to invest quickly, lack of licensing or registration, and vague company information.
To protect themselves, he advised members of the public to 'research thoroughly before investing, verify regulatory compliance, and never trust unsolicited offers.' He concluded with a strong caution: 'If it sounds too good to be true, it's probably a fraud.'
As the event concluded, he urged participants to engage in open, fact-based discussions, emphasizing that fighting corruption and financial fraud is a shared responsibility.
The event brought together stakeholders from civil society, youth groups, academia, security agencies, and the media. Discussions at the forum focused not only on emerging threats but also on the collective responsibility of citizens in building a corruption-free Nigeria.