Fraudsters manipulate BVN to steal N329m from banks

Fraudsters manipulate BVN to steal N329m from banks

The Nigeria Inter-Bank Settlement System reveals how fraudsters stole N329m through the use of static images to register for Bank Verification Numbers (BVNs).

The report outlines emerging fraud trends in Nigeria’s financial sector.

It says some unscrupulous BVN enrollment agents facilitated the scheme by registering still images of individuals, both Nigerians and foreigners, as live enrollees.

The BVNs were then used to open fraudulent accounts across microfinance banks, mobile money operators, and payment service banks.

The fraud led to siphoning of the sum of N329m just days after the BVNs were generated and the fake accounts were created.

The BVNs created using static images were assigned Nigerian names, which made it difficult to detect their fraudulent nature during the enrolment process.

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The discovery led to the deletion of several fraudulently created BVNs, and the agents involved have been reported to law enforcement agencies for arrest and prosecution.

According to the report, still images of Asians and Nigerians are taken and enrolled for BVN by recalcitrant agents and accounts are opened with the BVNs in MFBs, MMOs, and PSBs.

“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,” the NIBSS report says, adding that the total amount lost to fraud in 2024 surged to N52.26bn, representing a 350 per cent increase from N11.61bn recorded in 2020.

Fraudsters manipulate BVN to steal N329m from banks