The Economic and Financial Crimes Commission (EFCC) has warned of an alarming rise in virtual asset-related scams and fraudulent investment schemes across Africa, stressing the growing exploitation of digital technologies by fraudsters.
The alert was issued during a public lecture held in Ilorin, Kwara State, to mark the 2025 African Union Anti-Corruption Day, with the theme focusing on “The Evolving Nature of Financial Crimes in the Digital Age.” The EFCC Chairman, Mr. Ola Olukoyede, was represented by the Commission’s Ilorin Zonal Director, Mr. Daniel Isei.
In his address titled “Understanding Virtual Assets & Investment Scam,” Mr. Olukoyede explained that although cryptocurrencies, digital tokens, and other virtual assets were designed to foster financial innovation, criminals now use them as tools for money laundering and fraudulent investment schemes.
“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.
The EFCC Chair highlighted how recent investigations uncovered the use of cryptocurrency wallets by politicians and corrupt individuals to hide illicit funds, making detection more difficult for financial regulators.
Using the now-infamous CBEX fraud case as an example, Mr. Olukoyede underscored the impact of investor ignorance and negligence.
“The CBEX case showed how failure to conduct due diligence and report suspicious transactions on time can lead to devastating losses. No investment scam can succeed without the negligence of the investing public,” he added.
Despite the growing threat, Olukoyede assured the public that the EFCC is enhancing its capacity through training, intelligence gathering, and proactive enforcement, and has recorded notable successes in prosecuting virtual asset-related fraud.
“Virtual asset and investment fraud are preventable. The key is education, vigilance, and timely reporting,” he said.
He called on experts to simplify the concept of virtual assets for the general public, closing the “window of ignorance” exploited by scammers.
Also speaking at the forum, Mr. James Allison, an Assistant Chief Superintendent of the EFCC, detailed the tactics used by fraudsters who exploit digital tools like cryptocurrencies, NFTs, and unregulated platforms to target unsuspecting victims.
“They dangle unbelievable returns, create fake trading platforms, and vanish without a trace,” Allison said, urging citizens to research, verify legitimacy, and avoid unsolicited investment offers.
Red flags highlighted included:Promises of guaranteed high returns, pressure to invest quickly, absence of regulatory licensing and vague company profiles.
The event brought together stakeholders from civil society, youth organizations, academia, security agencies, and the media, fostering dialogue around strengthening the continent’s fight against digital-era corruption.
The EFCC reiterated that tackling financial crimes in the digital space requires collective effort and sustained public enlightenment.