Nigeria arrests 792 in raid targeting crypto scam operation

Nigeria’s anti-corruption agency arrested 792 people during a raid on Dec. 10 in Lagos, suspecting the location to be a hub for an extensive crypto romance scam operation.

According to the Economic and Financial Crimes Commission (EFCC), the arrested individuals include 148 Chinese nationals, 40 Filipinos, and several Nigerians.

The EFCC revealed that local accomplices were recruited to search for victims online, targeting individuals in the United States, Canada, Mexico, and various European countries.

“Nigerian accomplices were recruited by the foreign kingpins to prospect for victims online through phishing. Once the Nigerians are able to win the confidence of would-be victims, the foreigners would take over the actual task of defrauding the victims,” an EFCC spokesperson stated.

The operation involved pig butchering, a scam method where victims are seduced over social media or lured into fake crypto investment schemes before being pressured to transfer funds.

Ken Gamble, co-founder of cybercrime investigative firm IFW Global, told that Chinese organised crime groups are expanding their operations into regions like Africa, the Middle East, and Eastern Europe.

“The Chinese bring the technology, infrastructure and financing, which allows the local Nigerian scam syndicates to enhance their operations,” he explained.

Gamble added that the Lagos-based scheme appeared smaller than others, where Chinese-led operations sometimes employ thousands.

In Southeast Asia, such schemes have had up to 5,000 workers.

Workers, often recruited through job ads, are paid wages significantly higher than their local averages.

In Nigeria, salaries can reach up to $500 monthly, approximately ten times the country’s minimum wage, with additional bonuses for successful scams.

The EFCC noted that it is working with international partners to investigate possible links between this operation and larger organised crime networks.

Blockchain security firm Chainalysis previously reported that pig butchering scams have increased in 2023, as cybercriminals favor these faster schemes over long-term Ponzi operations.