Fraudsters have swindled N329m by registering for Bank Verification Numbers (BVNs) using static images.
This alarming revelation comes from a new report by the Nigeria Inter-Bank Settlement System (NIBSS), highlighting emerging fraud trends in Nigeria’s financial sector.
According to the report obtained by Sunday PUNCH, unscrupulous BVN enrolment agents facilitated this scheme by registering still images of both Nigerians and foreigners as if they were live enrollees.
These fraudulent BVNs were then exploited to open fake accounts across microfinance banks, mobile money operators, and payment service banks.
Remarkably, this fraudulent scheme enabled transactions involving N329m within mere days after the BVNs were generated and the counterfeit accounts created.
Investigations revealed that some BVNs created from static images were assigned Nigerian names, making it challenging to detect their fraudulent nature during enrollment.
As a result of these findings, numerous fraudulently created BVNs were deleted, and the agents involved have been reported to law enforcement agencies for arrest and prosecution.
The report stated, “Still images of both Asians and Nigerians are captured and enrolled for BVN by recalcitrant agents. Accounts are subsequently opened with these BVNs at MFBs, MMOs, and PSBs.
“An estimated N329m, proceeds of fraud, was received into accounts opened with BVNs generated from these still images just days before the fraudulent activities occurred.
“Further reviews uncovered more BVNs created from static images of Asians assigned Nigerian names; these were subsequently deleted. Agents involved were reported to law enforcement agencies for arrest and prosecution.”
The NIBSS report indicated that total fraud losses in 2024 soared to N52.26bn, marking a staggering 350 per cent increase from N11.61bn recorded in 2020.
However, the overall number of reported fraud cases dropped by 31 per cent, from 101,624 in 2020 to 70,111 in 2024.
The report attributed the rise in fraud losses to increasingly sophisticated schemes, system vulnerabilities, and an uptick in high-value fraud incidents.
Attempted fraudulent transactions in 2024 reached N86.36bn, with actual losses surging by 195 per cent compared to 2023.
To combat fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report fraudulent BVNs to NIBSS within 24 hours of detection.