Fraudsters Embezzle N329 Million by Exploiting Static Images for BVNs
Fraudsters have embezzled N329 million by registering static images as Bank Verification Numbers (BVNs). The NIBSS report indicates that this scheme involved corrupt BVN agents who facilitated fraudulent account creation. Total fraud losses surged to N52.26 billion in 2024 despite a decrease in reported cases, prompting the Central Bank of Nigeria to enforce stricter BVN reporting regulations.
Fraudsters have managed to steal approximately N329 million by utilizing static images to register for Bank Verification Numbers (BVNs), as detailed in a recent report by the Nigeria Inter-Bank Settlement System (NIBSS). The report highlights emerging fraudulent trends within Nigeria’s financial sector. Unscrupulous BVN enrollment agents were found to have registered still images of individuals, both Nigerian and foreign, as live enrollees, leading to the opening of fraudulent accounts across various microfinance banks and payment service banks.
Once these fraudulent BVNs were created, they were used to facilitate transactions totaling N329 million within a few days. Investigations revealed that some BVNs generated from static images were assigned Nigerian names, complicating detection during the enrolment process. Following the revelation, numerous fraudulent BVNs were deleted, and the agents responsible were referred to law enforcement for appropriate action against them.
The NIBSS report elaborated on the modus operandi of the agents. It stated that, “Still images of Asians and Nigerians are taken and enrolled for BVN by recalcitrant agents.” The report further noted that these accounts were opened with the fraudulently obtained BVNs, highlighting the alarming rates of financial losses attributed to such schemes.
In 2024, the total loss to fraud within Nigeria surged to N52.26 billion, a staggering increase of 350 percent from the recorded N11.61 billion in 2020. Interestingly, the total number of reported fraud cases diminished by 31 percent, from 101,624 in 2020 to 70,111 in the following years. This anomaly points to the emergence of more sophisticated fraud techniques and system vulnerabilities.
Furthermore, attempted fraudulent transactions in 2024 were valued at N86.36 billion, marking a notable increase of 195 percent in actual losses as compared to the previous year. To combat fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report any fraudulent BVNs to NIBSS within 24 hours of detection, ensuring a prompt response to such illegal activities.
The fraudulent exploitation of BVNs through the registration of static images highlights serious vulnerabilities within Nigeria’s financial system. The alarming rise in fraud losses and the sophistication of criminal techniques call for urgent and robust measures to enhance security protocols. The commitment of the Central Bank of Nigeria to enforce timely reporting of fraudulent activities demonstrates a proactive approach to mitigate such risks.
Original Source: punchng.com
