EFCC Warns of Soaring Crypto Crimes as Losses Hit $160bn

The Economic and Financial Crimes Commission (EFCC) has raised fresh concerns over the escalating wave of cryptocurrency-related crimes, warning that illicit digital transactions are costing the global economy billions of dollars annually.

EFCC Chairman, Ola Olukoyede, sounded the alarm in Abuja during the inauguration of the United Nations Office on Drugs and Crime (UNODC) Country Programme for Nigeria (2026–2030).

Olukoyede disclosed that more than $160 billion was lost globally in 2025 to illegal cryptocurrency transactions, highlighting the growing scale and sophistication of financial crimes driven by digital assets.

He warned that cryptocurrencies, including Bitcoin, are increasingly being exploited by criminal networks to move funds across borders with little or no detection.

According to him, rapid technological advancements, weak regulatory frameworks, and loopholes in the global financial system have combined to create fertile ground for cyber-enabled financial crimes.

The EFCC boss stressed that confronting the threat would require coordinated national strategies, stronger institutions, and intelligence-led enforcement mechanisms.

He noted that the UNODC programme comes at a critical time, as Nigeria and the international community grapple with rising threats from organised crime, cybercrime, and illicit financial flows.

Olukoyede described the initiative as a strategic platform aimed at strengthening the rule of law, enhancing the criminal justice system, and safeguarding citizens from both financial and violent crimes.

In his remarks, Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Musa Aliyu, called for deeper collaboration among law enforcement agencies.

Aliyu warned that Nigeria faces complex and interconnected security challenges, including violent extremism, smuggling, organised crime, and illicit financial flows, stressing that no single agency can tackle them in isolation.

Meanwhile, a new industry report has revealed that while cryptocurrency platforms across Africa are improving identity verification systems in response to tighter regulations, the region remains a major target for scams.

The report by Sumsub, a global verification platform, identified Nigeria, Ghana, South Africa, and Kenya among countries experiencing heightened scam activity, despite a 28 per cent drop in attempted fraud across the region.

The firm’s fourth annual State of the Crypto Industry Report highlighted how companies are increasingly balancing fraud prevention, regulatory compliance, and user experience as they expand operations in 2026.

Vice President of Sales (Africa) at Sumsub, Hannes Bezuidenhout, said the continent’s crypto ecosystem is entering a new phase where operational discipline is taking precedence over rapid growth.

“As platforms scale, the focus is shifting from how fast they can grow to how effectively they can operate under increasing regulatory scrutiny,” he said.

“Compliance, fraud resilience, and onboarding efficiency are becoming interconnected challenges that must be addressed together,” Bezuidenhout added.