Fraudsters have stolen N329 million by using static images to register for Bank Verification Numbers, according to a report by the Nigeria Inter-Bank Settlement System.
According to the PUNCH report, that some BVN enrolment agents were involved in the scheme by registering still images of Nigerians and foreigners as live enrollees. These fake BVNs were then used to open fraudulent accounts across microfinance banks, mobile money operators, and payment service banks.
The fraudulent accounts enabled transactions amounting to N329 million just days after the BVNs were generated and linked to the fake accounts.
“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,” the report stated.
It further explained that some of the BVNs created with static images were given Nigerian names, making it hard to detect the fraud during the enrolment process.
“More BVNs created with still images of Asians are given Nigerian names; these were discovered during reviews and subsequently deleted. Agents were reported to law enforcement agencies for arrest and prosecution,” the report added.
Following the discovery, several fraudulently created BVNs were deleted, and the agents involved have been reported to law enforcement agencies for arrest and prosecution.
The NIBSS report also highlighted a significant rise in financial fraud, with N52.26 billion lost to fraud in 2024 — a 350 percent increase from N11.61 billion recorded in 2020.
Although the total number of reported fraud cases dropped by 31 percent — from 101,624 in 2020 to 70,111 in 2024 — the report attributed the surge in fraud losses to more sophisticated schemes, system vulnerabilities, and high-value fraud incidents.
Attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses rising by 195 percent compared to 2023.
To tackle fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report fraudulent BVNs to NIBSS within 24 hours of detection.
