As digital assets grow in popularity, so too does the risk and Nigeria’s top anti-corruption agency is raising the red flag.
At an awareness event held to mark the 2025 African Union Anti-Corruption Day in Ilorin, the Economic and Financial Crimes Commission (EFCC) warned that fraudsters are increasingly using virtual assets and online investment platforms to deceive the public and launder illicit funds.
The warning came through the Commission’s Ilorin Zonal Director, Mr. Daniel Isei, who delivered a keynote on behalf of the EFCC Chairman, Mr. Ola Olukoyede. The event, hosted at the Sinclair Hotel, drew stakeholders from government, civil society, academia, and security agencies.
Speaking on the theme “Understanding Virtual Assets & Investment Scam,” Olukoyede highlighted how fast-moving technologies such as cryptocurrency, digital tokens, and unregulated online trading have opened new avenues for fraud.
“Virtual assets were designed to support financial innovation,” he noted, “but in the wrong hands, they are becoming a dangerous weapon for fraud and money laundering.”
Citing the CBEX scam as a cautionary example, the EFCC chief explained how many victims were lured into the fraudulent scheme with promises of fast, unrealistic returns. Lack of due diligence and failure to verify basic investment information contributed to the scam’s success.
Olukoyede revealed that some high-profile individuals have even hidden misappropriated public funds in crypto wallets, using the anonymous nature of digital finance to evade detection.
Despite the rising complexity of these scams, he said the EFCC is stepping up its game with improved intelligence gathering, advanced investigations, and strategic enforcement actions. Still, he emphasized that public cooperation is key.
“Education, awareness, and quick reporting are essential in tackling this threat,” he said. “Fraudsters thrive in ignorance — we must shut that door.”
Also speaking at the event, EFCC officer James Allison walked participants through the mechanics of digital scams. He explained how criminals create fake trading platforms, push urgency tactics, and promise guaranteed profits — all to manipulate unsuspecting investors.
“Nigerians are increasingly falling victim to online investment schemes that sound too good to be true — because they are,” he warned. “People must learn to ask questions, research thoroughly, and never invest under pressure.”
The lecture concluded with a call for stronger collaboration between financial institutions, law enforcement, and the general public, emphasizing that combating digital fraud must be a shared mission.
