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EFCC Raises Alarm on Digital Investment Scams Crippling Nigeria

EFCC warns digital investment scams in Nigeria could surpass money laundering, urging public awareness as virtual assets grow in popularity and misuse.

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EFCC warns digital investment scams in Nigeria could surpass money laundering, urging public awareness as virtual assets grow in popularity and misuse

Digital investment scams Nigeria is facing today may soon eclipse even traditional money laundering, according to the Economic and Financial Crimes Commission (EFCC).

Also read: EFCC Arrests 74 Fraudsters in Shocking Abuja Raid at Joyous Hotel

During a lecture to mark African Anti-Corruption Day in Sokoto, EFCC Chairman Ola Olukoyede issued a stark warning, describing virtual investment fraud as a rapidly rising threat to the nation’s financial stability.

Represented by DCE Nwanneka Nwokike, Olukoyede said, “Another rising criminal engagement that has the potential to outpace even money laundering on the continent is virtual assets and investment scam.”

He stressed that while virtual currencies themselves are not criminal, their fraudulent misuse is becoming increasingly common.

The lecture, themed “Understanding Virtual Assets and Investment Scam,” explored how virtual assets are changing the global financial system.

According to presenter Promise Alaegbu, “More than half of the world has adopted cryptocurrency, with over 119 countries using it.” He added that although virtual assets are legal in Nigeria, they carry high volatility, regulatory uncertainty, and a risk of cybercrime.

Alaegbu explained, “The future of money is digital. But that future depends on our understanding of how it works.” He warned that virtual transactions are irreversible and technically complex, making them attractive tools for fraudsters.

In a follow-up presentation, Mustapha Abubakar Yusuf, head of the EFCC Sokoto Zonal Office’s Tax Fraud Section, addressed the dangers of investment fraud.

He cautioned the public against unrealistic investment promises, stating, “It’s not realistic to have a 100 percent return on investment within 1 or 2 months. No legitimate organisation will pressure you to invest immediately.”

Yusuf clearly distinguished between scams and Ponzi schemes. “A scam involves deceiving someone to give up something of value. A Ponzi scheme uses new investors’ money to pay previous investors—it’s not sustainable.”

To protect themselves, Yusuf urged Nigerians to seek professional advice before investing and verify that any company is regulated by the Securities and Exchange Commission (SEC). He also warned citizens to report suspicious investment schemes.

Olukoyede appealed to the public to contribute to national stability by reporting fraudulent activities. “Let us make Nigeria work for all by refusing to fall for scams and by blowing the whistle where necessary.”

Also read: N8.5 billion bank fraud: EFCC arraigns three bankers, four suspects in Lagos

As digital finance becomes the norm, the EFCC remains firm on its stance: education, regulation, and vigilance are key to safeguarding Nigeria’s economy.

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EFCC Fugitive Killed in Makurdi Gun Duel Clash

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EFCC Fugitive Makurdi Gun Duel leaves a suspect dead after a clash between security operatives and alleged cult members in Benue State

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Abuja Court Jails Mother of Two for Stabbing Boyfriend to Death

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Court in Abuja sentences a 22-year-old cleaner to 20 years for fatal stabbing of her boyfriend during a fight in Kurudu, FCT (more…)

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NSCDC Shut Inner Galaxy Steel Factory After Infrastructure Theft Burst

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The Commandant General of the Nigeria Security and Civil Defence Corps (NSCDC), Professor Ahmed Abubakar Audi, has read a riot act to economic saboteurs and vandals across the country, stating unequivocally that there is no hiding place for vandals who prey on the nation’s commonwealth and national critical assets. While addressing the media in his Abuja office, the NSCDC boss disclosed that; his leadership will smoke them out of their hiding spots and make them face the full wrath of the law.

He further disclosed that; the NSCDC has secured a sweeping court order and have sealed all operational branches of Inner Galaxy Steel Company and Jiuxing Integrity Industrial Ltd nationwide for railway materials vandalism and other grave infractions. Issuing a strict directive to the Commandant in charge of the Special Intelligence Squad, Appollos Dandaura, the CG ensured that operatives maintain absolute diligence and professionalism throughout this high-impact operation, declaring that every single suspect found culpable in this bleeding of the nation’s commonwealth will face the full wrath of the law.

This landmark action follows the recent exposure of a highly sophisticated syndicate allegedly responsible for the systematic vandalism and theft of Nigeria’s critical public infrastructure, including railway lines, power transmission equipment and telecommunications assets, with authorities now linking the stolen materials to an industrial-scale recycling operation run by the steel companies and proceeds suspected of financing terrorist activities.

Armed with valid search warrants and the newly secured court order, operatives from the Commandant General’s Special Intelligence Squad stormed the Birnin Yero facility in Igabi Local Government Area of Kaduna State, where they recovered large quantities of railway sleepers, steel tracks and other vandalized infrastructure components, all of which have been officially secured and transferred to the Nigerian Railway Corporation to be preserved as vital exhibits for the impending prosecution.

According to confessions extracted from arrested staff, the syndicate operated a well-coordinated logistics network, routinely transporting vandalized national infrastructure from various attack sites to the company’s headquarters in Aba, Abia State, as well as to other branches, where the stolen steel was melted down in industrial furnaces and recycled into commercial products including nails, roofing sheets, and reinforcement bars sold to unsuspecting members of the public.

Suspects linked to the syndicate are now facing a raft of severe criminal allegations, including conspiracy to commit felony and theft, intentional endangering of the safety of persons traveling by railway, obstruction, injury, and damage to railway infrastructure, failure to give notice or information to a public officer, dishonestly receiving and assisting in the concealment of stolen property, and giving support and financing to terrorist groups for the commission of acts of terrorism.

Consequent upon the discoveries in Kaduna and further intelligence gathering, the closure and investigation orders have been extended to cover the headquarters of Inner Galaxy Steel Company and Jiuxing Integrity Industrial Ltd in Ahala Ukwa Village, Umuahala Community, Obuzor Ukwu, Ukwa West Local Government Area of Abia State, as well as the northern hub in Tasha Rawayyah, Gusau, Zamfara State, along with all other branches and subsidiaries nationwide.

The NSCDC has formally summoned the Chinese nationals involved in the management of the industrial complex; however, they are yet to appear before investigators, raising potential diplomatic and legal complexities, though the CG reaffirmed that the NSCDC remains fiercely committed to reducing infrastructure vandalism to the absolute minimum.

The Corps expressed profound gratitude to the judiciary for the swift granting of these legal instruments, which prevented further interference with crucial evidence, and also commended the press for their vital partnership in shining a bright light on these economic crimes, ensuring transparency and public accountability. Members of the public are strongly urged to continue collaborating with the Corps by sharing credible, timely information to help bring an end to infrastructure theft across Nigeria.

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