By Atoyebi Nike
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has issued a stark warning over the growing menace of virtual asset-related fraud sweeping across Africa, particularly in Nigeria.
Speaking through the Ilorin Zonal Director, Mr. Daniel Isei, during a public lecture to mark the 2025 African Union Anti-Corruption Day, Olukoyede highlighted how criminal elements are increasingly exploiting digital technologies especially cryptocurrencies to defraud unsuspecting investors and launder illicit wealth.
The event, themed around the evolution of financial crimes in the digital age, brought together stakeholders from civil society, security agencies, the media, and academic institutions.
“Virtual assets were designed for legitimate innovation in finance, but fraudsters are now using them as sophisticated tools for money laundering and investment scams,” Olukoyede stated in a lecture titled “Understanding Virtual Assets & Investment Scams.”
He cited recent EFCC investigations revealing how corrupt individuals, including politicians, use digital wallets to hide stolen public funds. Fraudulent investment platforms—often disguised as crypto-trading businesses—have also surged, targeting desperate Nigerians with promises of high returns.
One notable example referenced was the CBEX scam, which saw numerous investors lose millions due to poor due diligence and the absence of timely reporting. Olukoyede blamed public negligence and lack of awareness for the success of such schemes.
“No scam thrives without the silence or ignorance of its victims,” he said, calling for increased public vigilance and transparency.
Despite the complexity of digital financial crimes, Olukoyede assured that the EFCC is actively closing the gap through enhanced intelligence-gathering, specialized training, and cutting-edge investigative tools. He called on the public to report suspicious activity early and emphasized the importance of financial literacy in curbing scams.
During a technical session, ACE II James Allison, Assistant Chief Superintendent at the EFCC, expanded on the dangers of unregulated digital investment platforms. In his presentation titled “Understanding Virtual Assets and Investment Fraud,” Allison explained that fraudsters often pose as legitimate traders offering guaranteed high profits through fake crypto platforms, only to vanish after collecting funds.
“Fraudsters exploit people’s desperation and lack of knowledge,” he said. “They rely on flashy websites, fake testimonials, and time-sensitive offers to lure victims.”
He identified common red flags including unrealistic returns, lack of verifiable licensing, vague company details, and high-pressure sales tactics.
To avoid falling prey, Allison advised potential investors to verify regulatory status, avoid unsolicited offers, and always research thoroughly. “If an offer seems too good to be true, it likely is,” he cautioned.
The session closed with a call to action: combatting financial fraud is a shared civic duty requiring collaboration between citizens, regulators, and law enforcement.
The African Union Anti-Corruption Day, commemorated annually on July 11, aims to galvanize the continent’s response to corruption and promote dialogue on emerging threats—especially in the rapidly digitizing financial landscape.
