Nigeria’s anti-corruption agency has arrested 792 individuals in a raid targeting a crypto romance scam hub in Lagos, the country’s largest city.
The raid, conducted on December 10, included the arrest of 148 Chinese nationals and 40 Filipino nationals, according to a spokesperson for Nigeria’s Economic and Financial Crimes Commission (EFCC). The operation is believed to have been part of a large-scale scam known as pig butchering.
How the Crypto Scam Operated
The EFCC explained that the scheme operated through a partnership between foreign “kingpins” and local accomplices. Nigerians were recruited to locate and contact potential victims online through phishing attempts, primarily targeting individuals in the United States, Canada, Mexico, and European countries.
Once victims were approached and their trust was gained, foreign operatives would step in to carry out the actual fraud. Scammers typically used social media platforms to lure victims with romance schemes or fake cryptocurrency investment opportunities. Victims were then pressured into transferring funds, often under false promises of significant returns.
Organized Crime Groups Expanding to Africa
Ken Gamble, co-founder of cybercrime investigation firm IFW Global, highlighted the growing presence of Chinese organized crime groups in regions with weaker cybersecurity enforcement, including Africa, the Middle East, and Eastern Europe.
Gamble noted that Chinese groups often bring the technology, funding, and infrastructure necessary to scale these operations, while local crime syndicates provide the workforce.
According to Gamble, operations like the one in Lagos are relatively small, employing hundreds of people. In contrast, similar schemes in Southeast Asia, such as those based in Myanmar, have involved up to 5,000 workers.
Workers are often recruited through deceptive job advertisements. They receive wages that significantly surpass local earnings. In Nigeria, for instance, workers could earn as much as $500 per month—ten times the country’s minimum wage—along with bonuses based on the success of their scams.
Rise of Pig Butchering Scams
Pig butchering scams involve building fake relationships with victims, only to defraud them later. The scams typically combine elements of romance fraud with fraudulent crypto investments.
The EFCC said it is working with international partners to determine whether this particular operation is linked to larger organized crime networks.
In a report released in August, blockchain security firm Chainalysis stated that pig butchering scams are becoming more prevalent in 2023. Cybercriminals are increasingly shifting to these quicker, deceptive schemes instead of traditional Ponzi setups.
The EFCC’s raid in Lagos underscores the growing global threat of organized cybercrime and highlights the importance of international collaboration in combating such operations.
