How Fraudsters Stole N329m Using Images for BVN Registration

Fraudsters have stolen N329 million by exploiting a loophole in the Bank Verification Number (BVN) enrolment process, according to a report by the Nigeria Inter-Bank Settlement System (NIBSS). The report, which highlights emerging fraud trends in Nigeria’s financial sector, reveals that some BVN enrollment agents facilitated the scheme by registering still images of individuals—both Nigerians and foreigners—as live enrollees.

The fraudulent BVNs were then used to open accounts across microfinance banks, mobile money operators, and payment service banks. Investigations showed that within days of creating these fake accounts, transactions totaling N329 million were conducted. Some of the fraudulent BVNs were assigned Nigerian names, making them difficult to detect during the enrolment process.

Following the discovery, multiple fraudulent BVNs were deleted, and the agents responsible have been reported to law enforcement agencies for arrest and prosecution. The report states, “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.”

The NIBSS report also reveals a sharp increase in fraud-related losses in Nigeria’s financial sector. In 2024 alone, financial fraud losses surged to N52.26 billion—a 350 percent jump from the N11.61 billion recorded in 2020. Despite this, the total number of fraud cases reported dropped by 31 percent, from 101,624 in 2020 to 70,111 in 2024. The rise in fraud losses has been attributed to more sophisticated fraud schemes, system vulnerabilities, and an increase in high-value fraud incidents.

Attempted fraudulent transactions in 2024 amounted to N86.36 billion, with actual losses rising by 195 percent compared to 2023. In response to the growing threat, the Central Bank of Nigeria has mandated that financial institutions report fraudulent BVNs to NIBSS within 24 hours of detection to curb further exploitation of the system.