Fraudsters have embezzled N329 million using static images for Bank Verification Numbers (BVNs), according to a NIBSS report. The fraudulent accounts opened enabled substantial transactions shortly after BVNs were created. The total fraud losses in 2024 soared to N52.26 billion, revealing an alarming trend despite a decrease in reported cases. The Central Bank of Nigeria is urging prompt reporting of fraudulent BVNs by financial institutions.
Fraudsters have successfully embezzled N329 million by exploiting static images to register for Bank Verification Numbers (BVNs). This alarming revelation comes from a report by the Nigeria Inter-Bank Settlement System (NIBSS), which highlights troubling fraud trends within Nigeria’s financial sector. Agents involved in this scheme registered still images of individuals, both Nigerians and foreigners, falsely as living enrollees.
The fraudulent BVNs facilitated the establishment of false accounts in various financial institutions, including microfinance banks and mobile money operators. Just days after generating these BVNs, the accounts were used to execute transactions amounting to N329 million. Investigations uncovered that some of these BVNs bore Nigerian names, complicating the detection of their fraudulent activities at the enrollment stage.
Following these discoveries, multiple fraudulent BVNs were promptly deleted. The agents implicated in these illicit activities have been reported to law enforcement agencies for potential arrest and prosecution. The report asserted, “Still images of Asians and Nigerians are taken and enrolled for BVN by recalcitrant agents.”
In terms of the broader context of financial fraud, the NIBSS report highlighted a significant rise in total fraud losses, escalating to N52.26 billion in 2024, a staggering increase from N11.61 billion in 2020. Conversely, the overall number of reported fraud cases saw a 31 percent decline, decreasing from 101,624 in 2020 to 70,111 in 2024. This increase in financial losses has been attributed to the emergence of more sophisticated fraud tactics and vulnerabilities within the system.
Additionally, attempted fraudulent transactions reached N86.36 billion in 2024, representing a 195 percent increase in actual losses compared to the previous year. To counteract these fraudulent practices, the Central Bank of Nigeria has mandated that financial institutions report any fraudulent BVNs to the NIBSS within 24 hours of detection.
In summary, the fraudulent activities involving static images for BVN enrollment have resulted in considerable financial losses, totaling N329 million. Despite a decline in the number of fraud cases reported, the overall monetary impact of fraud has surged dramatically. Regulatory measures are being implemented to address and mitigate these ongoing challenges in Nigeria’s financial landscape.
Original Source: punchng.com
