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