The Executive Chairman, Economic and Financial Crimes Commission (EFCC), Mr Ola Olukoyede, has decried the dangerous extent to which virtual assets and investment scam are gaining ground in Nigeria , saying that the financial crimes will soon overtake money laundering.
Olukoyede, who was represented at the African Anti -Corruption Day Commemoration lecture in Sokoto by the acting EFCC Zonal Director, Sokoto Zonal Directorate, DCE Nwanneka Nwokike, further lamented that Nigerians are good at not taking advice.
Noting that Africa continued to be assailed by the scourge of corruption in diverse ways, Olukoyede stated that the issue of illicit financial flows is a monstrous challenge.
Olukoyede however stated that, “another rising criminal engagement that has the potential to outpace even money laundering on the continent is virtual assets and investment scam”.
Continuing on this year’s theme, “Understanding Virtual Assets and Investment Scam” the EFCC boss clarified that virtual assets are not fundamentally criminal except when they are wrongfully or fraudulently used.
Olukoyede however appealed to Nigerians to strive to make the country work for all by ensuring that they report any act of fraud.
Presenting first paper on “Understanding Virtual Assets” ASEI Promise Alaegbu said it’s no longer news that the future of money is virtual currency, hence the world financial system is rapidly changing.
Alaegbu also noted that more than half of the world have adopted crypto currency as over 119 countries globally have adopted crypto.
Sressing that virtual assets is legalized in Nigeria as well, ASEI Alaegbu advised however that it is highly volatile, with regulatory uncertainty and no reversal of transaction as well as prone to scams and high cyber security risk plus technical complexities.
Responding to either virtual assets are good investments, the speaker responded in the affirmative, adding however that, it depends largely on the level of ones understanding.
Delivering another paper on “Investment Fraud”, the Sokoto EFCC Zonal head, Tax Fraud Section, ACE 11 Mustapha Abubakar Yusuf, said investing in digital assets requires certain levels of risk appetite.
Mustapha, who warned that no business can guarantee 100% investment returns in a month or two, advised that any business that promises high return at low or no risk is not worth it.
“Its not realistic to have 100 percent return in investment within 1 or 2 Months. People should not be rushed into making investment as no legitimate organization will pressure people into investing on the spot”.
Giving diffrence between fraud/scam and Ponzi scheme, Mustapha said the former is deceiving people in a way that is illegal or dishonest, or intentional perversion of truth in order to induce another to part with something of value or surrender a legal right while the later is fradulent investment scam where returns are paid to earlier investors using the capital of others
Talking on how to protect Nigerians from financial investment fraud, Mustapha said people should seek advice before making significant financial decisions and also check if the company is regulated by the Security and Exchange Commission’s (SEC) as well.
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