EFCC Warns Nigerians on Rising Virtual Asset, Investment Scams
Stephen Olufemi Oni, Ilorin
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has raised the alarm over the growing threat of virtual asset and investment scams across Africa, warning that fraudsters are increasingly leveraging digital technologies to exploit unsuspecting investors.
The warning was given on Thursday in Ilorin, the Kwara State capital, by the Ilorin Zonal Director of the EFCC, Mr. Daniel Isei, at a public lecture marking the 2025 African Union Anti-Corruption Day.
The Africa Anti-Corruption Day, marked annually on July 11, is aimed at raising awareness about the dangers of corruption and mobilizing collective action to combat it. This year’s theme focuses on the evolving nature of financial crimes in the digital age.
In a thought-provoking address titled “Understanding Virtual Assets & Investment Scam,” Olukoyede said Africa’s fight against corruption is being undermined by a surge in illicit financial flows, with money laundering and virtual asset fraud topping the list.
He explained that virtual assets, including cryptocurrencies and digital tokens, are not inherently criminal but become dangerous tools in the hands of fraudsters.
“Technology is advancing rapidly, and while virtual assets were created for legitimate financial innovation, criminals are exploiting them for money laundering and fraudulent investments,” he said.
Olukoyede pointed to recent investigations that revealed politicians and corrupt individuals hiding stolen funds in cryptocurrency wallets to evade detection. He also warned about the growing trend of fraudulent investment schemes using virtual assets to lure desperate investors with promises of quick returns.
Highlighting the infamous CBEX scam, the EFCC Chairman cited it as a case study of how ignorance and negligence among investors can fuel the success of fraudulent schemes.
He added: “The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses,” he said. “No investment scam can succeed without the negligence of the investing public.”
Despite the increasing complexity of virtual asset fraud, Olukoyede assured the public that the EFCC remains a step ahead through proactive intelligence, training, and operational breakthroughs. He noted that the agency has already recorded significant successes in the investigation and prosecution of such crimes.
He emphasised the need for public enlightenment and stakeholders’ collaboration to tackle the menace.
“Virtual asset and investment fraud are preventable,” Olukoyede said. “The key is education, vigilance, and timely reporting. This interactive forum is a step in the right direction.”
The EFCC Chairman also called on experts at the forum to demystify virtual assets for the benefit of ordinary Nigerians and help close the “window of ignorance” that fraudsters exploit.
In his presentation, an Assistant Chief Superintendent of the EFCC, ACE II James Allison emphasised the growing vulnerability of Nigerians to digital investment scams and cryptocurrency-related frauds.
In his lecture titled “Understanding Virtual Assets and Investment Fraud”, Allison outlined how fraudsters are exploiting virtual assets such as cryptocurrencies, NFTs, and unregulated investment platforms to defraud unsuspecting members of the public.
“Fraudsters are increasingly taking advantage of people’s lack of understanding of virtual assets. They dangle unbelievable returns on investment, create fake trading platforms, and often vanish without a trace once they secure their victims’ money,” he explained.
Allison cited real-life cases handled by the Commission, including young Nigerians who lost millions of naira to Ponzi schemes disguised as crypto-trading platforms. He listed common red flags such as guaranteed high returns, pressure to invest quickly, lack of licensing or registration, and vague company information.
To protect themselves, he advised members of the public to “research thoroughly before investing, verify regulatory compliance, and never trust unsolicited offers, ending with a strong caution: “If it sounds too good to be true, it’s probably a fraud.”
As the event concluded, he urged participants to engage in open and fact-based discussions, emphasizing that fighting corruption and financial fraud is a shared responsibility.
The well-attended event, held at Sinclair Hotel, Ilorin, brought together stakeholders from civil society, youth groups, academia, security agencies, and the media. Discussions at the forum focused not only on threats but also on the collective responsibility of citizens in building a corruption-free Nigeria.