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Scam Alert: N329m lost in BVN fraud as agents register static images

POSTED ON March 2, 2025 •   BUSINESS      BY Abiodun Saheed Omodara
Nigeria Inter-Bank Settlement System.

Fraudsters have stolen N329 million by utilizing static images to register for Bank Verification Numbers (BVN).

This is highlighted in a recent report from the Nigeria Inter-Bank Settlement System (NIBSS), which details emerging fraud trends within Nigeria's financial sector.

The report indicates that unscrupulous BVN registration agents facilitated the operation by enrolling still images of both Nigerian and foreign individuals as genuine live applicants.

These BVNs were subsequently used to set up fraudulent accounts across microfinance banks, mobile money operators, and payment service banks.

The fraudulent scheme led to transactions involving N329 million just days after the BVNs were created and the false accounts established. Investigations revealed that some of the BVNs generated using static images were assigned Nigerian names, complicating the detection of their fraudulent nature during the registration process.

The revelation resulted in the removal of multiple fraudulently created BVNs, and the implicated agents have been reported to law enforcement agencies for arrest and prosecution.

The report stated, "Still images of Asians and Nigerians are captured and registered for BVN by noncompliant agents. Accounts are opened using these BVNs in microfinance banks, mobile money operators, and payment service banks. An estimated N329 million, being the proceeds of fraud, was received into some of the accounts opened with the BVNs generated from these still images shortly before the fraud occurred. Additional BVNs created with still images of Asians were given Nigerian names, which were uncovered during reviews and subsequently deleted. Agents have been reported to law enforcement agencies for arrest and prosecution."

The NIBSS report noted that the total amount lost to fraud in 2024 increased to N52.26 billion, marking a 350 percent rise from the N11.61 billion recorded in 2020. However, the overall number of fraud cases reported dropped by 31 percent, from 101,624 in 2020 to 70,111 in 2024. The report attributed the surge in fraud losses to increasingly sophisticated fraudulent schemes, system vulnerabilities, and a rise in high-value fraud incidents. Attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses rising by 195 percent compared to 2023.

To mitigate fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report fraudulent BVNs to NIBSS within 24 hours of detection.

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