Cryptocurrency

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A Nigerian “romance cryptocurrency fraud” victim who lost $225,000 has seen the money recovered and returned by the <a target="_blank" href="https://www.torontopolice.on.ca/" rel="noreferrer noopener">Toronto Police Service</a> in collaboration with the Economic and Financial Crimes Commission (<a target="_blank" href="https://www.efcc.gov.ng/efcc/" rel="noreferrer noopener">EFCC</a>). The three-year international investigation involved a $335,000 fraud incident by Omonkhoa Precious Afure, a Nigerian national who defrauded the victim in 2021. 
According to the Toronto authorities, the fraud occurred in June 2021 when the victim began communicating on Facebook with a man named “Moshe Theodor McNigh.”&nbsp; 
The Canadian agency in its statement highlighted the significance of the collaborative efforts between the two authorities which resulted in recovering a greater part of the funds. 
“As a result of the collaborative efforts between these units, in December of 2024, Toronto Police was able to return $225,000 back to the victim,” the statement reads. 
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It added that the recovery was the result of a three-year investigation that involved multiple units from Toronto police (Coordinated Cyber Center), 51 Division Fraud Unit, and Financial Crimes Asset Forfeiture Unit Ontario Provincial Police’s Anti-Rackets Branch, Canadian Anti-Fraud Centre (CAFC), Royal Canadian Mounted Police, International Liaison Officers located in Nigeria and Nigeria’s Economic and Financial Crimes Commission. 
The case began when the Toronto police received a fraud complaint from a Toronto resident who claimed they’d been scammed $355,000. The victim was able to recuperate $225,000 as the result of a series of investigation processes. The Police said that the accused’s fraudulent proceeds were seized and some of the money was determined to belong to the Toronto victim.&nbsp; 
In December 2024, the Nigerian courts ordered the proceeds to be returned to the victim. The EFCC then arrested and charged the Nigerian national Omonkhoa Precious Afure in connection with the scam. 
On another end, the Canadian Anti-Fraud Centre estimates that in 2023, more than 50 per cent of the $309 million in reported investment fraud losses were tied to cryptocurrency investment schemes. It again estimated that only 5 to 10 per cent of victims report cases of fraud. 
<h4 id="cryptocurrency-frauds-more-concerns" class="wp-block-heading">Cryptocurrency frauds – more concerns</h4> 
The Federal Bureau of Investigation (<a href="http://www.fbi.gov" target="_blank" rel="noreferrer noopener">FBI</a>) in its September 9, 2023, <a href="https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3CryptocurrencyReport.pdf" target="_blank" rel="noreferrer noopener">Cryptocurrency Fraud Report</a> for 2023 expressed that the agency’s <a href="https://www.fbi.gov/ic3" target="_blank" rel="noreferrer noopener">Internet Crime Complaint Center</a> received more than 69,000 complaints from the public regarding cyber-enabled crime and financial fraud involving the use of cryptocurrency, with over $5.6 billion in reported losses.&nbsp; 
Occasionally, criminal actors exploit cryptocurrencies for all schemes which include tech support, confidence and romance, investment, and government impersonation scams. Out of all, the FBI said that Investment fraud was the most reported cryptocurrency scheme in 2023, and also saw the most reported losses, with about $3.9 billion lost.&nbsp;&nbsp; 
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Likewise in May 2023, a suspect in the person of Eze Harrison Arinze allegedly received $382,000 worth of bitcoins from his victims before his account was blocked by his Virtual Asset Service Provider (VASP).&nbsp; He was later charged on five counts charges bordering on obtaining by false pretence and money laundering to the tune of $769,263. 
Meanwhile, there has been a surge in cryptocurrency and financial fraud over the last few years. Data from the Nigeria Inter-Bank Settlement System (NIBSS) in its <a href="https://nibss-plc.com.ng/2023-annual-fraud-landscape/" target="_blank" rel="noreferrer noopener">2023 Annual Fraud Landscape report</a> said that financial institutions in Nigeria lost ₦17.6 billion ($11.2 million) to fraud in 2023. The report shows that the amount lost to fraud has increased every year in the past five years with significant growth between each year. 
The total amount lost to fraud went from ₦2.96 billion ($1.8 million) in 2019 to ₦ 11.61 billion ($9 million) in 2022. Between 2019 and 2023, the total amount lost to fraud increased by 496 per cent to ₦17.6 billion. 
In its efforts to curb cyber-attacks, the EFCC urged the Nigerian government to approve a 300 per cent increase in its annual budget. The agency in November said that the request if granted, would help to strengthen efforts against escalating financial crimes, particularly cybercrime and cryptocurrency fraud, which have caused substantial financial losses across the country. 
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 <img loading="lazy" decoding="async" width="760" height="372" src="https://technext24.com/wp-content/uploads/2020/10/ajajaa.jpg" alt="Security Awareness Key For Individuals to Tackle Banking Fraud in Africa" class="wp-image-95623" style="width: 100%;height:auto" srcset="https://technext24.com/wp-content/uploads/2020/10/ajajaa.jpg 760w, https://technext24.com/wp-content/uploads/2020/10/ajajaa-300x147.jpg 300w, https://technext24.com/wp-content/uploads/2020/10/ajajaa-640x313.jpg 640w" sizes="(max-width: 760px) 100vw, 760px">
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EFCC estimated that fraudulent crypto trading has resulted in losses amounting to N3.4 billion. The agency added that it has made significant financial recoveries, tracing and recovering nearly N250 billion in cash, millions of dollars in foreign currencies, and various real estate properties. 
“In the past year, we have made significant recoveries, tracing and recovering close to N250 billion in cash and several tens of millions of dollars, as well as numerous real estate properties nationwide. Not all recovered funds go directly to the Federation account; some are returned to victims of financial crimes”, the EFCC Chairman, Ola Olukoyede said. 
He again stressed the need for enhanced tools to combat rising crypto-related fraud. “We need software to investigate crypto and virtual currencies, which could help us recover significant funds annually. We urge collaboration to recover and utilize assets effectively,” he said. 
Also Read: <a target="_blank" href="https://technext24.com/2024/11/25/crypto-ruja-ignatova-changed-appearance/" rel="noreferrer noopener">Cryptoqueen Ruja Ignatova may have changed her appearance, new documentary suggests.</a>

Romance crypto fraud: EFCC and Toronto Police recover $225,000 in a $335,000 fraud case

Technext.ng

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