A new report by the Nigeria Inter-Bank Settlement System (NIBSS) has revealed a shocking fraud scheme in which criminals stole N329 million by manipulating the Bank Verification Number (BVN) registration process. Instead of registering real individuals, some corrupt BVN enrollment agents used static images—photos of people, both Nigerians and foreigners—to create fraudulent BVNs.
Once these fake BVNs were generated, they were used to open accounts across microfinance banks, mobile money operators, and payment service banks. Within days, the fraudsters had funneled N329 million through these accounts, exploiting loopholes in the banking system.
Investigations uncovered that some of the fraudulent BVNs had been given Nigerian names, making it difficult to detect them as fake during registration. However, financial regulators eventually identified the fraud, leading to the deletion of several compromised BVNs. The agents responsible have now been reported to law enforcement for further investigation and prosecution.
“This fraud involved still images of both Nigerians and Asians being enrolled as if they were real individuals,” the report stated. “These fake BVNs were then used to open accounts, allowing criminals to receive and move N329 million within days.”
The report also provided a broader picture of the growing fraud crisis in Nigeria’s financial sector. In 2024 alone, total financial losses due to fraud skyrocketed to N52.26 billion—an alarming 350% increase from N11.61 billion recorded in 2020. While the number of fraud cases has actually declined by 31% over the years, the methods used by criminals have become more sophisticated, targeting larger sums of money with greater precision.
Attempted fraudulent transactions in 2024 amounted to a staggering N86.36 billion, with actual losses rising by 195% compared to the previous year. Experts say vulnerabilities in banking systems, coupled with increasingly advanced fraud tactics, have contributed to these rising figures.
In response, the Central Bank of Nigeria has tightened regulations, mandating that financial institutions report any fraudulent BVNs to NIBSS within 24 hours of detection. Authorities hope this swift action will prevent similar schemes in the future and restore confidence in the banking system.
