Fraudsters have reportedly looted ₦329 million from Nigerians using static images to register for Bank Verification Numbers (BVNs).
This information is detailed in a recent report by the Nigeria Inter-Bank Settlement System, which highlights emerging fraudulent activities within Nigeria’s financial sector.
As per the report, certain unethical BVN enrollment agents played a crucial role in this scheme by registering still images of both Nigerian and foreign individuals as if they were live enrollees.
Naija News understands that these BVNs were subsequently exploited to establish fraudulent accounts across various microfinance banks, mobile money operators, and payment service banks.
The fraudulent operation facilitated transactions amounting to ₦329 million just days after the creation of the BVNs and the establishment of the counterfeit accounts.
Investigations revealed that some of the BVNs generated from static images were linked to Nigerian names, complicating the detection of their fraudulent nature during the enrollment process.
This revelation prompted the deletion of numerous fraudulently created BVNs, and the agents implicated have been reported to law enforcement for potential arrest and prosecution.
The report read, “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 ₦329m 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 indicated that the total losses due to fraud in 2024 escalated to ₦52.26 billion, marking a staggering 350 percent increase from the ₦11.61 billion recorded in 2020.
Conversely, the overall number of reported fraud cases decreased by 31 percent, falling from 101,624 in 2020 to 70,111 in 2024.
The report attributed the rise in fraud losses to the emergence of more advanced fraud schemes, existing system vulnerabilities, and an increase in high-value fraudulent incidents.
In 2024, attempted fraudulent transactions reached ₦86.36 billion, with actual losses increasing by 195 percent compared to the previous year.
To combat fraudulent activities related to Bank Verification Numbers (BVNs), the Central Bank of Nigeria has mandated that financial institutions report any fraudulent BVNs to NIBSS within 24 hours of their detection.
