Nigerian Fraudsters Exploit Static Images to Steal N329 Million

Fraudsters have stolen N329 million in Nigeria by using static images to register bank accounts with fictitious Bank Verification Numbers (BVNs). This scheme involved unethical agents who enrolled these images, often assigned Nigerian identities. The total loss from fraud in the financial sector surged to N52.26 billion in 2024, emphasizing the need for stringent measures.

Fraudsters in Nigeria have reportedly embezzled N329 million by exploiting static images for registering Bank Verification Numbers (BVNs). A report from the Nigeria Inter-Bank Settlement System highlights these emerging fraud threats within the financial sector. The fraudulent activities were facilitated by unethical BVN enrollment agents who enrolled still images of individuals, presenting them as live enrollees.

These fraudulent BVNs were employed to establish accounts in various microfinance banks, mobile money operators, and payment service banks. This scheme resulted in transactions amounting to N329 million shortly after the fraudulent BVNs were generated and the suspect accounts were activated. Investigative findings revealed that some BVNs linked to static images were assigned Nigerian identities, complicating their detection during the enrollment process.

Consequently, several fraudulent BVNs were deleted from the system, and relevant agents have been reported to law enforcement agencies for appropriate legal action. The report stated, “Still images of Asians and Nigerians are taken and enrolled for BVNs by recalcitrant agents. Accounts are opened with these BVNs in microfinance banks, mobile money operators, and payment service banks.”

The Nigeria Inter-Bank Settlement System report also noted that total losses from fraud in 2024 rose sharply to N52.26 billion, up 350% from N11.61 billion in 2020, despite a 31% decrease in the total number of fraud cases reported within the same timeframe. This increase in financial losses is attributed to more sophisticated fraudulent schemes, system vulnerabilities, and a significant rise in incidents involving high-value fraud.

Attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses increasing by 195% compared to 2023. To combat these fraudulent BVN activities, the Central Bank of Nigeria has mandated that financial institutions report any fraudulent BVNs detected to the Nigeria Inter-Bank Settlement System within 24 hours.

In summary, the illicit actions of fraudsters using static images for BVN registration have resulted in significant financial losses amounting to N329 million. The growing sophistication of fraud schemes underscores the urgency for robust measures to prevent such activities. Reporting fraudulent BVNs swiftly to the Nigeria Inter-Bank Settlement System is imperative to safeguard the integrity of the financial sector.

Original Source: punchng.com