Uncovering the Scam: How Fraudsters Stole N329m Through BVN Enrolment

A shocking revelation has emerged from a recent report by the Nigeria Inter-Bank Settlement System – fraudsters have managed to steal a staggering N329 million by exploiting a loophole in the Bank Verification Number system. These criminals used static images to register for BVNs, allowing them to open fraudulent accounts across various financial institutions.

The report uncovered a disturbing trend where unscrupulous BVN enrollment agents registered still images of individuals, both Nigerian and foreign, as live enrollees. This devious scheme enabled transactions involving the stolen N329 million to take place just days after the BVNs were generated and fake accounts were created.

What’s even more alarming is that some of these fraudulently created BVNs were assigned Nigerian names, making it incredibly challenging to detect their fraudulent nature during the enrollment process. This discovery prompted the deletion of several fake BVNs, and the agents responsible have been reported to law enforcement agencies for arrest and prosecution.

The report paints a grim picture of the state of fraud in Nigeria’s financial sector, with total losses skyrocketing to N52.26 billion in 2024 – a staggering 350% increase from the previous year. Despite a 31% drop in the total number of reported fraud cases, the increase in losses can be attributed to the rise of more sophisticated fraud schemes and system vulnerabilities.

This report serves as a stark reminder of the constant threat posed by fraudsters in the financial industry and the urgent need for enhanced security measures to protect innocent individuals from falling victim to such malicious activities. The battle against fraud continues, and it is crucial for all stakeholders to remain vigilant and proactive in combating this ever-evolving threat.

In 2024, attempted fraudulent transactions reached a staggering N86.36 billion, marking a 195% increase in actual losses compared to the previous year. The alarming rise in fraudulent activities has prompted the Central Bank of Nigeria to take decisive action.

In a bold move to combat fraudulent BVN activities, the Central Bank of Nigeria has issued a mandate requiring financial institutions to report any suspicious BVNs to NIBSS within 24 hours of detection. This swift response is crucial in protecting the integrity of the financial system and safeguarding the interests of all stakeholders. The battle against fraud is intensifying, and the Central Bank of Nigeria is leading the charge to ensure a secure and trustworthy banking environment for all.