The Economic and Financial Crimes Commission (EFCC) has sounded the alarm over a rising wave of virtual assets and investment scams in Nigeria and across Africa.
EFCC Chairman, Mr. Ola Olukoyede, issued the warning on Thursday through the Ilorin Zonal Director, Mr. Daniel Isei, during a public lecture at the 2025 African Union Anti-Corruption Day held at Sinclair Hotel, GRA, Ilorin. The event focused on the theme of evolving financial crimes in the digital age.
Olukoyede cautioned that while virtual assets such as cryptocurrencies and digital tokens are not illegal, criminals are increasingly exploiting them to launder money and defraud unsuspecting investors. He highlighted that many fraudsters use these assets to operate under the radar, concealing stolen funds and promising unrealistic returns on bogus investment platforms.
“Technology is advancing rapidly, and while virtual assets were created for legitimate innovation, criminals are exploiting them for money laundering and fraudulent investments,” he said. He further cited recent investigations where politically exposed persons attempted to hide illicit wealth in cryptocurrency wallets.
A major example, according to Olukoyede, was the now-infamous CBEX scam, where a large number of Nigerians were defrauded due to a lack of due diligence and timely reporting. “Investment scams cannot succeed without the negligence of the investing public,” he said, stressing that investor education is key to prevention.
Despite the growing sophistication of cybercriminals, Olukoyede assured the public that the EFCC is enhancing its capabilities through intelligence gathering, specialized training, and proactive investigations. He added that the agency had made notable progress in prosecuting individuals and networks involved in digital fraud.
Also speaking at the event, Assistant Chief Superintendent of the EFCC, ACE II James Allison, explained how fraudsters use misleading schemes involving cryptocurrencies, NFTs, and unregulated investment platforms. He warned that many victims are lured by unrealistic profit margins and pressured into quick investments.
“Fraudsters are increasingly taking advantage of people’s lack of understanding of virtual assets,” Allison said. “They create fake trading platforms, promise unbelievable returns, and then disappear with investors’ money.” He listed common red flags such as guaranteed profits, vague company information, and a lack of licensing.
He advised Nigerians to research thoroughly before investing, verify regulatory approvals, and avoid unsolicited financial offers. “If it sounds too good to be true, it’s probably a fraud,” he warned.
The EFCC urged experts and stakeholders to continue educating the public, demystifying the nature of virtual assets, and promoting financial literacy to shut the door on cybercriminals.
The African Union Anti-Corruption Day forum drew participants from civil society, youth groups, the media, academia, and security agencies. Discussions centered on the collective responsibility of Nigerians in building a corruption-free nation, especially in the face of digital threats.
