Still images of Asians and Nigerians are taken and enrolled for BVN by recalcitrant agents. Accounts are opened with these BVNs in MFBs, MMOs, and PSBs.
The use of static photographs to register for Bank Verification Numbers has resulted in the theft of N329 million by fraudulent individuals.
A recent report published by the Nigeria Inter-Bank Settlement System provides an overview of the developing fraud patterns in Nigeria’s financial sector.
Certain dishonest BVN enrollment agents made the plan possible by enrolling still photographs of individuals, both Nigerians and foreigners, as live enrollees.
Following the generation of the BVNs and the creation of the phony accounts, the fraudulent plan made it possible for transactions to take place involving the N329 million.
During the enrollment process, it was difficult to identify the fake nature of some of the BVNs that were produced using static photos because they were given Nigerian names, as found by the investigations.
Several BVNs that had been created fraudulently were removed as a result of the discovery, and the agents who were involved have been reported to law enforcement agencies so that they might be arrested and prosecuted.
It reads, “Still images of Asians and Nigerians are taken and enrolled for BVN by recalcitrant agents. Accounts are opened with these BVNs in MFBs, MMOs, and PSBs.
“An estimated N329m being proceeds of fraud was received into some of the accounts opened with the BVN generated with these still images a few days before the fraud.
“More BVNs created with still images of Asians are given Nigerian names these were discovered during reviews and subsequently deleted. Agents were reported to LEAs for arrest and prosecution.”
Compared to the N11.61 billion that was reported in 2020, the total amount that was lost to fraud in 2024 increased to N52.26 billion, which represents a 350 percent increase. This information was emphasized in the NIBSS report.
On the other hand, the overall number of incidents of fraud that were recorded decreased by 31%, going from 101,624 in the year 2020 to 70,111 in the year 2024.
As a result of more sophisticated fraud schemes, system vulnerabilities, and an increase in high-value fraud occurrences, the analysis concluded that the increase in fraud losses was due to system flaws.
Actual losses increased by 195% in 2024 compared to 2023, with attempted fraudulent transactions totaling N86.36 billion. This represents a significant increase from 2023.
In an effort to put a stop to fraudulent BVN activity, the Central Bank of Nigeria has ordered that financial institutions submit fake BVNs to the National Independent Bank for Securities and Securities (NIBSS) within twenty-four hours of their discovery.