Fraudsters have stolen N329 million by using static images to register for Bank Verification Numbers (BVN), according to a report by the Nigeria Inter-Bank Settlement System (NIBSS).
The report revealed that some BVN enrollment agents aided the scheme by registering still images of Nigerians and foreigners as live enrollees. The BVNs were then used to open fraudulent accounts across microfinance banks, mobile money operators, and payment service banks.
The fraudulent accounts facilitated transactions involving N329 million just days after the BVNs were generated. Investigations showed that some of the BVNs were assigned Nigerian names, making them difficult to detect during the enrolment process.
Following the discovery, several fraudulently created BVNs were deleted, while the agents involved have been reported to law enforcement agencies for arrest and prosecution.
The NIBSS report also indicated that total fraud losses in Nigeria surged to N52.26 billion in 2024, a 350 per cent increase from N11.61 billion recorded in 2020, despite a 31 per cent drop in reported fraud cases.
To curb BVN-related fraud, the Central Bank of Nigeria has directed financial institutions to report fraudulent BVNs to NIBSS within 24 hours of detection.
