New Fraud Trend: How Agents Use Fake Images of Nigerians And Asians to Register BVNs, Steal N329m
- According to a new report by the Nigerian Inter-Bank Settlement System (NIBBS), enrolment agents created BVNs using fake images
- The report disclosed that images of Asians and Nigerians were taken and enrolled for BVN by agents and given Nigerian names
- The fraudsters then moved about N329 million a few days after creating bank accounts containing the fraudulent BVNs
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Fraudsters have moved N329 million from bank accounts using stationary images to register for Bank Verification Numbers (BVNs).
The revelation is according to a new report by the Nigeria Inter-Bank Settlement System (NIBBS), showing emerging fraud patterns in the financial industry.
Source: Getty Images
N329m moved into bank accounts with fake BVNs
The report stated that some BVN registration agents helped facilitate the scheme by registering static images of people, both Nigerians and foreigners, as live users.
The BVNs were then used to open fraudulent accounts in microfinance banks, mobile money operators, and payment service banks.
The scheme allowed transactions of about N329 million a few days after registering the BVNs and the fake accounts were created.
Findings show that some BVNs created using static images were assigned Nigerian names, making it difficult to detect their fraudulent nature during the enrolment process.
Fraudsters open bank accounts with fake BVNs
The finding led to more BVNs which were fraudulently created, and the agents involved have reported to security agents for prosecution.
According to the NIBBS report, images of Asians and Nigerians were taken and enrolled for BVN by agents and accounts were then opened with names in the banks and the MNOs.
NIBSS said about N329 million suspected to be fraud proceeds were received into some of the accounts with BVNs generated with the still images a few days before.
The report shows that the total amount lost to fraud in 2024 rose to N52.26 billion, representing a 350% increase from N11.61 billion in 2020.
Fraud cases rise BY 350%
However, the number of reported fraud cases fell by 31% from 101,624 in 2020 to 70,111 in 2024.
The report blamed the increase on more sophisticated fraud patterns, system weaknesses and an increase in high-value incidents.
Attempted fraud transactions last year amounted to N86.36 billion, with actual losses increasing by 195% relative to 2023.
Punch reports that the Central Bank of Nigeria (CBN) has directed financial institutions to report fraudulent BVNs to NIBBS within 24 hours to curb fraudulent activities.
Source: Getty Images
The development comes as a report on fraud and forgeries in Nigerian banks by the Financial Institutions Training Centre (FITC) in the first half of 2024 revealed that at least 105 bank employees were involved in fraud.
However, this figure was a 34.38% decrease from the 160 employees involved in fraud cases in 2023.
Nigerian banks sack 49 employees over fraud
Legit.ng earlier reported that deposit money banks terminated the employment of 49 staff members between April and June 2024 over fraudulent activities.
That is according to a report published by the Financial Institutions Training Centre (FITC).
The report showed a troubling rise in internal misconduct, with bank employees discharged for fraudulent activities rising by 40% relative to 35 employees dismissed in the first quarter of 2024.
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Source: Legit.ng
