Fraudsters have exploited vulnerabilities in Nigeria’s banking system, stealing N329 million by using static images to obtain Bank Verification Numbers, according to a recent report from the Nigeria Inter-Bank Settlement System.
The report, obtained by Sunday PUNCH, reveals that some BVN enrollment agents assisted in the scheme by registering still images of both Nigerians and foreigners as live enrollees.
These fraudulently obtained BVNs were then used to open fake accounts across microfinance banks, mobile money operators, and payment service banks.
Once the accounts were set up, transactions involving N329 million took place within days, making it difficult to trace the fraud in real time.
Investigators found that some of the BVNs generated using static images were assigned Nigerian names, further complicating detection during enrollment.
Upon discovery, several of these fraudulent BVNs were deleted, and the agents responsible were reported to law enforcement authorities for arrest and prosecution.
The report stated, “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 N329m 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.”
Beyond this particular scheme, the NIBSS report highlights a sharp rise in financial fraud across Nigeria.
In 2024, total fraud losses skyrocketed to N52.26 billion, marking a 350% increase from N11.61 billion recorded in 2020.
Despite this surge, the number of reported fraud cases actually declined by 31%, dropping from 101,624 in 2020 to 70,111 in 2024.
The report attributes the higher losses to increasingly sophisticated fraud tactics, weaknesses in financial systems, and a growing number of high-value fraud incidents.
Attempted fraudulent transactions in 2024 totaled N86.36 billion, with actual losses surging by 195% compared to 2023.
To combat BVN-related fraud, the Central Bank of Nigeria has now mandated that all financial institutions must report fraudulent BVNs to NIBSS within 24 hours of detection.
