How the EFCC is tracing and freezing Ponzi scheme assets across Nigeria

As soon as an investigation begins, the Commission moves to secure interim forfeiture orders and works closely with banks, regulators and international partners to identify and freeze illicit funds.

Recent high‑profile actions have resulted in thousands of frozen accounts and the seizure of assets valued at billions of naira, although formal recovery and restitution to victims remain in progress.

Below is an overview of the EFCC’s multi step approach to protecting investors and upholding financial integrity.

• Legal authority and interim forfeiture

Under the EFCC Establishment Act, the Commission can investigate economic crimes and apply immediately for court approval to freeze suspected proceeds of fraud. These interim forfeiture orders cover bank accounts, real estate, vehicles and other assets, ensuring that criminals cannot conceal or dissipate stolen funds before trial.

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• Forensic accounting and bank collaboration

EFCC teams use forensic accounting techniques to trace financial flows from the very start of an investigation. Formal requests compel banks and payment providers to share customer data, transaction histories and beneficiary information. This partnership allows investigators to map complex money trails and identify hidden accounts linked to Ponzi operators.

• Digital and cross border tracking

To address modern fraud methods, the EFCC employs digital forensics experts to analyze blockchain records and cryptocurrency transactions. For cases involving funds moved abroad, the Commission liaises with international agencies such as INTERPOL and foreign enforcement bodies to exchange intelligence and secure asset freezes in other jurisdictions.

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• Freezing accounts and seizing assets

Once evidence is gathered, the EFCC obtains court orders to lock down bank accounts connected to fraudulent schemes. In landmark operations, over a thousand accounts were frozen in a single action. Beyond cash, the Commission has seized luxury vehicles, corporate shares and hundreds of properties pending the outcome of legal proceedings.

• Regulatory partnerships and public advisories

The EFCC works hand in hand with the Securities and Exchange Commission and the Central Bank of Nigeria to identify unlicensed investment platforms. Joint alerts and public warnings inform investors about suspect entities and advise them to verify a platform’s registration status before depositing funds.

• High profile recoveries and ongoing investigations

Recent EFCC crackdowns have targeted platforms responsible for trillion naira losses, including CBEX. Arrests of key syndicate members have led to the recovery of significant sums for restitution. Parallel operations against cryptocurrency and romance scams have also yielded record asset recoveries, marking a year of strong enforcement results.

• Challenges and future enhancements

Despite these successes, the EFCC faces challenges such as court delays, rapidly evolving digital scams and limits on post forfeiture asset management. To strengthen its efforts, the Commission is advocating legislative reforms to streamline freezing procedures, expand custodial powers and invest in advanced technology and training for investigators.

By leveraging its legal mandate, strategic partnerships and advanced investigative methods, the EFCC continues to dismantle Ponzi networks and reclaim stolen assets. This consistent enforcement work sends a clear message that financial fraud will not go unpunished and reinforces confidence in Nigeria’s financial system.

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