Fraudsters Exploit BVN System to Steal N329m Using Static Images

A shocking new Nigeria Inter-Bank Settlement System (NIBSS) report has revealed that fraudsters successfully stole N329 million by exploiting weaknesses in the Bank Verification Number (BVN) registration process. The fraud involved unscrupulous BVN agents who used static images of individuals—both Nigerians and foreigners—to generate fraudulent BVNs, which were then used to open fake bank accounts.

How the BVN Fraud Was Carried Out

According to the report obtained by Sunday PUNCH, fraudsters manipulated BVN enrollment agents into registering still images instead of live enrollees. These fraudulent BVNs were subsequently used to create fake accounts across:

• Microfinance Banks (MFBs)
• Mobile Money Operators (MMOs)
• Payment Service Banks (PSBs)

Once activated, these accounts were used to facilitate transactions amounting to N329 million within just days of creation. Investigations revealed that some BVNs generated with static images of Asians were assigned Nigerian names, making detection difficult.

Crackdown on Fraudulent BVNs

Upon discovery, several fraudulently created BVNs were deleted, and the BVN enrollment agents involved were reported to law enforcement for prosecution.

The NIBSS 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.”

Rising Fraud Trends in Nigeria’s Financial Sector

The report highlighted a massive surge in financial fraud in Nigeria, with total losses reaching N52.26 billion in 2024, a staggering 350% increase from N11.61 billion in 2020.

However, despite the rising financial losses, the number of reported fraud cases dropped from 101,624 in 2020 to 70,111 in 2024, indicating that fraudsters are now using more sophisticated techniques to conduct high-value fraud.

Additionally, the total attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses increasing by 195% compared to 2023.

CBN’s Response to Curb BVN Fraud

In response to the rising fraud cases, the Central Bank of Nigeria (CBN) has introduced stricter regulations. Banks and financial institutions are now required to report fraudulent BVNs to NIBSS within 24 hours of detection.

With financial fraud becoming increasingly sophisticated, authorities are under pressure to tighten security measures and hold fraudulent BVN agents accountable.