EFCC Arrests 193 Foreign Nationals and 599 Nigerians for Alleged Crypto Fraud

The EFCC detains 193 foreign nationals and 599 Nigerians involved in an alleged cryptocurrency fraud scheme, marking a significant crackdown on financial crimes.

The Economic and Financial Crimes Commission (EFCC) has reported a significant arrest of 792 individuals involved in cases related to cryptocurrency investment fraud and romance scams.

Wilson Uwujaren, the Director of Public Affairs for the EFCC, informed journalists during a briefing at the commission’s Lagos office on Monday about an unexpected operation conducted on Tuesday, December 10, 2024. During this operation, suspects were arrested in their hideout—a seven-storey structure known as Big Leaf Building—located at No.7 Oyin Jolayemi Street in Victoria Island, Lagos.

Uwujaren stated that “the breakthrough was the result of actionable intelligence and several months of surveillance and monitoring of the syndicate’s activities. Those arrested included 148 Chinese nationals, 40 Filipinos, two Kharzartans, one Pakistani individual, and one Indonesian national.”

The investigation revealed that the foreign nationals utilize the facility at 7, Oyin Jolayemi Street—which could easily be mistaken for a corporate headquarters of a financial institution—to train their Nigerian accomplices in initiating romance and investment scams. They also exploit the identities of Nigerians to carry out their criminal activities.

He mentioned that every floor is outfitted with high-end desktop computers. On the fifth floor alone, investigators found 500 SIM cards from local telecom companies, which were purchased for criminal activities.

Their Nigerian collaborators were enlisted by the international masterminds to search for victims on the internet using phishing techniques, primarily targeting individuals from the United States, Canada, Mexico, and various European nations.

They typically provide them with desktop computers and mobile devices, as well as set up fake profiles for their use.

“The Nigerian partners also receive logs granting them access to international communication lines and potential victims, with whom they interact via WhatsApp, Instagram, and Telegram.”

The building where the suspects were arrested
The building where the suspects were arrested

They are additionally given WhatsApp accounts that are connected to foreign phone numbers, particularly from Germany and Italy.

Their roles involve involving victims in romantic dialogues and fictitious business or investment discussions, with the aim of deceiving them into making purchases on a so-called online investment shopping platform known as www.yooto.com. For individuals expressing interest, account activation fees on this platform begin at $35 USD.

The investigation discovered that the main criterion for recruiting these young Nigerians is their proficiency in computer use, particularly typing skills. Successful candidates receive desktop computers and mobile devices before undergoing a two-week training on impersonating foreign women in romance scam chats to persuade victims into investing in fake cryptocurrency schemes run by their employers.

Once the Nigerians gain the trust of potential victims, foreign collaborators would assume control over defrauding these individuals. Subsequently, they would exclude their Nigerian counterparts from the operation, leaving them unaware of further developments in the transaction.

It is unexpected that the Nigerians are unaware of who owns the “company” they work for, as they receive neither appointment letters nor payments from a corporate account. Investigations showed that their compensation comes either in cash or through an individual’s personal account.

One of the offices in the complex where the foreigners were arrested for alleged fraud

The investigation is continuing to determine the full scope of the scam and identify any accomplices, including the possibility of collaboration with organized international fraud networks.

The Commission is collaborating closely with its international partners on this matter. Items seized from the suspects include desktop computers, mobile phones, laptops, and cars.

The suspects have provided statements, and their systems have been examined. They are currently detained under a valid remand warrant and will be brought before the court in the next few days.

What is clear from this arrest, however, is that the belief that Nigerians are responsible for the massive amounts of fraud originating from our country is incorrect. Foreigners are exploiting our nation’s unfortunate reputation as a hub for fraud to establish their own criminal operations here and disguise them under this perception.

However, as demonstrated by this operation, criminals in Nigeria will find no place to hide.