The Economic and Financial Crimes Commission (EFCC) has revealed a deeply troubling development involving thousands of Nigerian youths actively participating in a sophisticated fraud scheme that compromises the personal data of innocent citizens. In a statement released on Friday, the EFCC disclosed that approximately 12,000 young individuals across various regions of the country are currently engaged in selling highly sensitive information—including Bank Verification Numbers (BVNs), National Identity Numbers (NINs), passport photographs, and other personal identifiers—to certain fintech organizations for as little as N5,000 per victim.

According to the EFCC, these individuals lure unsuspecting Nigerians into surrendering their data under false pretenses. The fraudsters typically offer small payments ranging between N1,500 and N2,000 in exchange for victims’ personal details. After obtaining the information, they resell it to fintech companies at a higher price, enabling the fraudulent creation of financial accounts that are then used to conduct illegal activities.

The Rise of “Account Suppliers” and “KYC Groups”

The perpetrators of this scam have adopted seemingly harmless identities. They brand themselves as “Account Suppliers” or part of “KYC Groups,” thereby disguising their malicious intent. These self-proclaimed canvassers approach ordinary citizens—many of whom are unaware of the dangers involved—and offer them minor compensation for the release of critical identity documents.

The EFCC explained that these fraudsters request items such as BVNs, NIN registration slips, passport photographs, and sometimes even physical ID cards. Once they secure this information, they use it to open multiple accounts across various fintech platforms. These accounts then serve as vessels for investment scams, fraudulent transfers, and money laundering operations.

Nationwide Network of Data Traffickers

Investigations by the EFCC have uncovered that this fraud network is not localized but rather operates across the entire country. From Lagos to Kano, Port Harcourt to Jos, young Nigerians are actively involved in data peddling, forming an underground digital economy that undermines national security and financial integrity.

The Commission warned that the trend represents not just a case of individual misconduct but a coordinated fraud scheme. It noted that some of the fintech companies involved might be unaware that the data they are processing comes from illegitimate sources, but others could be turning a blind eye in exchange for rapid customer growth and profits.

Fraudulent Fintech Accounts and Investment Scams

Once these illicit fintech accounts are opened using compromised identities, the fraudsters use them to launch a variety of financial scams. One prominent tactic includes promoting fake investment windows with promises of huge returns, which convinces unsuspecting victims to deposit money into these accounts.

The EFCC stated that the fraudsters manipulate victims into sharing bank details or transferring funds under the impression that they are participating in a legitimate investment scheme. Instead, the money is quickly moved across multiple fintech platforms or used to purchase cryptocurrencies, making it difficult to trace and recover.

Additionally, these fraudulent accounts are used in online transactions and “giveaway” promotions, which often appear on social media. Once victims participate, their personal data and banking information are exploited.

Promo Scam Involving Foreign Airline Discounts

In the same statement, the EFCC highlighted a recent case that further illustrates the ingenuity and evolving nature of such frauds. A particular scheme involved a so-called “promotional offer” that promised a 50% discount on airline ticket purchases from a reputable foreign airline.

Victims were asked to make a token payment of N500, which was presented as a charity donation. However, that seemingly innocent payment served as a backdoor for cybercriminals to install malware or gain backdoor access to the victims’ bank apps and digital profiles. The victims were also required to download an app that, once installed, extracted sensitive information stored on their devices.

Subsequently, funds were siphoned from the victims’ bank accounts and transferred into accounts held in unnamed microfinance institutions, further complicating efforts to track and recover the stolen money.

Use of Malware and Digital Intrusion

The EFCC elaborated on how modern fraud techniques now include the use of malicious software (malware) to infiltrate the financial systems of individuals. These viruses or spyware can be embedded in mobile applications, websites, or promotional emails. Once a user installs the infected software, the attackers gain unauthorized access to banking apps, payment platforms, and personal emails.

Through this unauthorized access, criminals control and manipulate digital wallets and accounts, diverting funds to their preferred fintech accounts. In many cases, these stolen funds are used to purchase crypto assets, which are notoriously difficult to trace.

Arrests and Ongoing Investigations

The anti-graft agency confirmed that it has already made several arrests connected to this fraud ring. Law enforcement officials are actively pursuing more suspects while intensifying efforts to recover the funds lost to these elaborate scams.

According to the EFCC, investigations are being expanded to uncover the full extent of the fraud, including potential accomplices within fintech companies and financial service providers who may be enabling or benefiting from the illegal activities.

The Commission stated that its primary goal remains safeguarding Nigeria’s financial system, and it will not relent until the country is free from such digital crimes.

EFCC Issues Nationwide Warning

As part of its ongoing campaign to protect citizens from financial fraud, the EFCC issued a strong public warning. It urged Nigerians to refrain from participating in any scheme that requires them to provide personal data in exchange for money, however small the amount may be.

“No Nigerian should allow themselves to become an Account Donor,” the EFCC cautioned, emphasizing that those who knowingly or unknowingly provide their identity for illegal activities could face criminal prosecution.

Furthermore, the agency warned fintech companies to conduct more thorough Know-Your-Customer (KYC) verification processes to prevent the opening of fake or unauthorized accounts. It also advised Nigerians to remain vigilant and avoid downloading suspicious apps or clicking on unverified promotional links online.

National Security at Stake

The EFCC concluded that this growing trend of digital fraud poses a serious threat to Nigeria’s national security, economic stability, and global reputation. With the country increasingly relying on digital platforms for banking, commerce, and governance, the need to protect citizens’ data and financial systems has become more urgent than ever.

By cracking down on these fraud networks and raising public awareness, the EFCC aims to strengthen trust in Nigeria’s fintech sector while safeguarding the digital future of all Nigerians.