A new study from the University of Surrey, in partnership with Nigeria’s Economic and Financial Crimes Commission (EFCC), has revealed significant insights into cryptocurrency fraud trends in Nigeria.
According to the study, young Nigerian men are predominantly involved in these high-stakes crimes, with 100% of convicted cryptocurrency fraudsters being male and nearly two-thirds under 30.
The study also found that a substantial portion of their targets are American, with 55% of fraud cases focusing on U.S. victims.
This study, led by Dr. Suleman Lazarus, a cybercrime expert from the University of Surrey, highlights the increasing sophistication and scale of cryptocurrency-based crimes.
Dr. Lazarus noted that this emerging criminal demographic is marked by a young, tech-savvy generation that exploits the anonymity provided by cryptocurrencies, often utilizing popular social media platforms such as Facebook, Gmail, and Instagram to carry out scams.
Bitcoin was cited as the preferred cryptocurrency, accounting for 46% of cases due to its decentralized and relatively anonymous nature, posing a significant challenge for law enforcement to trace and recover funds.
Financial losses to victims from these scams varied widely, with individual fraudulent gains ranging from $1,000 to over $475,000 in cash, in addition to one notable case involving 1,200 Bitcoin, valued at nearly $82 million.
Interestingly, the study challenges some preconceptions regarding the educational background of cybercriminals.
Only 25% of convicted fraudsters held a college degree, debunking the notion that sophisticated digital fraud requires advanced technical education.
Dr Lazarus stressed that the findings emphasize the urgent need for international collaboration to tackle the transnational nature of cryptocurrency fraud, particularly given the substantial financial harm inflicted on victims.
Experts say the study serves as a reminder to law enforcement, policymakers, and the public about the evolving threats within the digital financial landscape, underscoring the necessity for heightened vigilance and preventive measures as cryptocurrency grows in popularity.
Meanwhile, in a bid to fortify the protection of intellectual property (IP) in Nigeria, the Federal Government has reaffirmed its dedication by revalidating the National Intellectual Property Policy and Strategy Paper.
The initiative, driven by the Ministry of Industry, Trade, and Investment in partnership with the Ministries of Culture and Creative Economy, Justice, and Health and Social Welfare, seeks to provide a robust framework for safeguarding Nigeria’s intellectual assets.
Dr. Doris Anite, the Minister of Industry, Trade, and Investment, reiterated the significance of the revalidation, noting that the original document was completed in 2022 but now requires updating to address unresolved areas and include emerging trends in IP rights.
