Fraudsters have fraudulently registered BVNs using static images, stealing N329 million. A report by NIBSS highlights how these fake BVNs were used to open bogus accounts, leading to significant financial losses. While the number of reported fraud cases has decreased, the monetary losses have surged dramatically. Efforts are underway to combat these fraudulent activities, including mandatory reporting of suspicious BVNs.
Fraudsters have exploited vulnerabilities in Nigeria’s financial sector by stealing N329 million through fraudulent Bank Verification Numbers (BVN) registration. A report by the Nigeria Inter-Bank Settlement System (NIBSS) revealed that deceitful BVN agents used static images of various individuals to register as live enrollees. These fraudulent BVNs were instrumental in facilitating the opening of bogus accounts across various financial institutions, including microfinance banks and mobile money operators.
The scam enabled the immediate execution of transactions totaling N329 million shortly after the fake BVNs and accounts were created. An investigation uncovered that many of these registrations involved images of both Asians and Nigerians assigned fictitious identities, complicating detection efforts during the enrollment phase. As a result of these findings, numerous fraudulent BVNs were deleted, and the implicated agents have been submitted to law enforcement for prosecution.
The NIBSS report emphasized that the total fraud losses for 2024 rose dramatically to N52.26 billion, marking a staggering 350% increase since 2020 when N11.61 billion was recorded. Interestingly, the number of reported fraud cases decreased by 31%, with figures dropping from 101,624 in 2020 to 70,111 in 2024. This paradox indicates that while incidents may have diminished numerically, the schemes have become increasingly sophisticated, leading to higher financial losses.
Additionally, attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses surging by 195% compared to the previous year. In response to rising fraudulent activities surrounding BVN registrations, the Central Bank of Nigeria has mandated that financial institutions report any suspicious BVN activities to the NIBSS within 24 hours.
The NIBSS report underscores a significant rise in both sophistication and financial losses associated with fraud in Nigeria’s banking sector. While the number of reported fraud cases has decreased, the increase in monetary losses indicates more complex schemes are at play. Urgent measures, including prompt reporting of fraudulent activities and stricter enforcement actions, are critical to combat this escalating threat.
Original Source: punchng.com
