Insider Fraud Foiled as Bank Flags Ex-Staff to EFCC Over $510,000 Diversion

Insider Fraud Foiled as Bank Flags Ex-Staff to EFCC Over $510,000 Diversion

The Economic and Financial Crimes Commission (EFCC) has arraigned a former bank employee, Obinna Nwaobi, before the Federal High Court in Enugu for allegedly diverting $510,000 belonging to a customer.

Nwaobi was docked before Justice C.O. Ajah on a seven-count charge bordering on obtaining money by false pretence, fraudulent conversion, and stealing. The EFCC accused him of exploiting his role as a banking officer to illegally divert funds entrusted to him for management and investment.

According to the charge sheet, Nwaobi allegedly received the sum of $510,000 from a bank customer under the pretext of assisting with investment decisions but subsequently converted the money for personal use. The offences contravene Section 1(1)(a) of the Advance Fee Fraud and Other Fraud-Related Offences Act 2006, as well as Sections 342 and 343 of the Criminal Code Law of Enugu State.

The alleged fraud came to light after the new generation bank where he previously worked detected suspicious movements linked to his accounts. An internal audit reportedly uncovered anomalies, prompting the bank to alert the EFCC. This led to a detailed investigation and eventual arraignment.

A senior compliance officer at the bank said enhanced surveillance systems and routine monitoring were instrumental in detecting the irregular transfers early. He added that the bank remains committed to strengthening its anti-fraud operations by investing in advanced monitoring tools capable of identifying unusual account activities in real time.

The bank reaffirmed its collaboration with law enforcement agencies to ensure any staff member implicated in fraudulent activities is swiftly identified and prosecuted—an effort aimed at safeguarding customer funds and boosting public confidence in the financial sector.

Nwaobi pleaded not guilty to all charges. Following his plea, the prosecution requested a trial date and asked the court to remand the defendant. Justice Ajah ordered that he be remanded at the Enugu State Correctional Facility pending the hearing of his bail application and adjourned the case to a later date for further proceedings.