A recent report by the Nigeria Inter-Bank Settlement System (NIBSS) has revealed that fraudsters stole N329 million by registering Bank Verification Numbers (BVNs) with static images instead of live enrollees.
It was gathered that certain fraudulent BVN enrollment agents facilitated the scheme by enrolling still images of both Nigerians and foreigners as genuine applicants. These BVNs were then used to open fraudulent accounts across microfinance banks (MFBs), mobile money operators (MMOs), and payment service banks (PSBs).
The fraudulent scheme enabled transactions involving N329 million just days after the BVNs were created. Investigations further revealed that some BVNs generated using static images were assigned Nigerian names, making them harder to detect during the verification process.
Following the discovery, authorities deleted several fraudulently created BVNs, and the agents involved have been reported to law enforcement agencies (LEAs) for arrest and prosecution.
The report stated, “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.”
The NIBSS report also highlighted a significant rise in financial fraud, with total losses in 2024 surging to N52.26 billion, a 350% increase from N11.61 billion in 2020.
To curb fraudulent BVN activities, the Central Bank of Nigeria (CBN) has directed financial institutions to report fraudulent BVNs to NIBSS within 24 hours of detection.
