Fraudsters Exploit Static Images to Steal N329 Million through BVN Registration
Fraudsters have embezzled N329 million through the registration of Bank Verification Numbers (BVNs) using static images. A report by the Nigeria Inter-Bank Settlement System details how these actions have led to fraudulent accounts being opened across various financial institutions. Total fraud losses in Nigeria have surged to N52.26 billion in 2024, necessitating rapid responses from regulatory bodies to address such fraudulent activities.
A group of fraudsters has illicitly acquired N329 million by utilizing static images to register for Bank Verification Numbers (BVNs). According to a report published by the Nigeria Inter-Bank Settlement System (NIBSS), these fraudulent activities highlight emerging threats within Nigeria’s financial sector. Agents involved in BVN enrollment unlawfully registered still images of individuals, both domestic and foreign, as if they were live applicants.
The fraudulent BVNs were subsequently employed to establish illegitimate accounts across various financial institutions, including microfinance banks, mobile money operators, and payment service banks. This scheme resulted in the execution of numerous transactions totaling N329 million merely days after the fraudulent accounts were initiated. Investigations revealed that several of these BVNs were assigned Nigerian identifiers, complicating their detection during the enrollment process.
In response to these actions, numerous unlawfully created BVNs have been deleted, and the implicated agents have been referred to law enforcement agencies for potential arrest and prosecution. The NIBSS 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.”
Furthermore, the report indicated an alarming escalation of total fraud losses for 2024, amounting to N52.26 billion, marking a 350 percent increase compared to the N11.61 billion recorded in 2020. In contrast, the overall number of reported fraud cases declined by 31 percent, from 101,624 in 2020 to 70,111 in 2024. The rise in financial losses has been attributed to increasingly sophisticated schemes and vulnerabilities within the system.
Attempted fraudulent transactions in 2024 reached N86.36 billion, with actual losses rising by 195 percent relative to 2023. To combat these fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report any fraudulent BVNs to NIBSS within 24 hours of identification.
In summary, fraudsters have exploited static images to illegally register BVNs, resulting in a significant financial loss of N329 million. The rise in fraudulent activities, as reported by NIBSS, emphasizes the need for rigorous security measures within the financial sector. As losses from fraud escalate, authorities are urged to implement stricter reporting protocols and enhance monitoring to mitigate such threats.
Original Source: punchng.com
