Scammers managed to get away with N329 million through a deceitful scheme involving static images used to register for Bank Verification Numbers (BVNs).
A recent report from the Nigeria Inter-Bank Settlement System revealed this alarming trend in the country’s financial industry.
The report highlighted how dishonest BVN enrollment agents engaged in registering fake live enrollees by submitting still images of individuals, both locals and foreigners.
These fraudulent BVNs were then exploited to create sham accounts across various financial institutions like microfinance banks, mobile money operators, and payment service banks.
The illegal activities resulted in transactions totaling N329 million shortly after the BVNs were issued and the fake accounts were set up.
Investigations revealed that some of the BVNs fabricated with static images were linked to Nigerian names, making it challenging to identify their deceitful nature during the enrollment process.
In response to the discovery, the fake BVNs were promptly deleted, and the involved agents were reported to law enforcement agencies for further action.
The report disclosed that fraud losses in 2024 skyrocketed to N52.26 billion, marking a significant 350% increase from N11.61 billion recorded in 2020.
Despite a 31% decrease in the number of reported fraud cases, the rise in losses was attributed to more sophisticated fraud tactics, system weaknesses, and an increase in high-value fraudulent incidents.
In 2024, attempted fraudulent transactions amounted to N86.36 billion, with actual losses surging by 195% compared to the previous year.
To combat fraudulent BVN activities, the Central Bank of Nigeria has mandated financial institutions to promptly report any suspicious BVNs to NIBSS within 24 hours of detection.