EFCC Raises Alarm Over Rising Virtual Asset Scams, Urges Public Vigilance and Due Diligence

Nigerians have been warned to exercise greater caution when engaging in online investment opportunities, particularly those involving virtual assets. The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, issued the caution during a lecture commemorating African Union Anti-Corruption Day, held on June 11, 2025.

Speaking through Assistant Commander of the EFCC (ACE I) Johnson Oshodi, who represented him at the event in Uyo, Olukoyede expressed deep concern about the rising number of virtual asset and investment scams, warning that these schemes are becoming increasingly sophisticated. The theme of the public lecture was “Understanding Virtual Assets and Investment Scam,” reflecting the urgency and relevance of the issue at hand.

Technology continues to reshape the financial landscape globally, and while digital innovation brings new opportunities, it also opens new frontiers for criminal exploitation. Fraudsters are capitalizing on the ignorance and desperation of unsuspecting investors, using elaborate digital schemes to defraud them of hard-earned money. The EFCC chairman emphasized that fraud of this nature is preventable, but only if individuals arm themselves with adequate knowledge and skepticism.

Virtual assets, he explained, are digital representations of value that operate on blockchain or distributed ledger technology. These include cryptocurrencies and digital tokens that can be used for transactions, investments, or as means of exchange. Olukoyede clarified that while virtual assets themselves are not inherently illegal, the criminal misuse of such technologies is what turns them into instruments of fraud.

Fraudulent investment operations, including Ponzi and pyramid schemes, have grown more prevalent, targeting individuals through seemingly legitimate digital platforms. Olukoyede noted that these schemes often rely on misleading advertising and promises of unrealistic returns. He stressed that many of these fraudulent operations thrive due to the negligence of investors who fail to investigate the legitimacy of the platforms or promoters involved.

Referring to recent fraudulent cases such as the CBEX scheme, the EFCC chairman pointed out that poor judgment and a lack of due diligence are consistent factors that allow scammers to succeed. According to him, many victims of such schemes do not report suspicious transactions until they have lost their investments, which undermines timely intervention by the authorities.

“Every exploitation of investors in any guise is a fraudulent act,” Olukoyede warned, urging the public to be proactive rather than reactive. He insisted that no scam could gain ground without the passive complicity of those who ignore warning signs and refuse to seek credible information.

The EFCC, he assured, remains committed to combating financial crimes through both investigative and preventive efforts. The agency is working on strengthening collaboration with stakeholders across various sectors to curb the rising tide of virtual investment fraud. Public enlightenment, surveillance, and regulatory synergy are key components of the Commission’s strategy in addressing this growing threat.

During the event, the keynote address was delivered by ACE II Emeka Ukpai, who echoed similar sentiments. He emphasized that ignorance among investors continues to be a major enabler of fraud. According to him, many people fall victim to scams not because the schemes are brilliant, but because they lack the knowledge or skepticism to question them. Ukpai urged stakeholders and community leaders to play an active role in educating the public, especially the youth, about the dangers of unchecked digital investment offers.

Ukpai also called on tech innovators and regulators to stay ahead of the curve, stressing the need to identify and neutralize fraud vulnerabilities before they can be exploited. He highlighted that the window of ignorance being exploited by scammers must be firmly shut with awareness campaigns, regulatory action, and public cooperation.

The public lecture concluded with a renewed commitment from the EFCC to continue spearheading efforts that combine law enforcement, policy dialogue, and education. Citizens were encouraged to report suspicious activities promptly and avoid chasing “get-rich-quick” opportunities that lack transparency and credibility.

As Nigeria and other African countries continue to embrace digital transformation, the EFCC’s message is clear: a tech-savvy society must also be a fraud-aware society. Only through vigilance, education, and proactive collaboration can the continent protect itself from the financial pitfalls of the digital age.