The Nigeria Inter-Bank Settlement System (NIBSS) has reported that approximately N400 million was stolen by fraudsters through financial accounts opened with stolen identities in 2024.
The latest NIBSS Fraud Report revealed that identities of senior citizens were stolen, and accounts were opened in their names.
According to the report, the estimated N400 million proceeds from fraud were transferred into these accounts and subsequently dissipated.
The accounts were operated by an individual from Asia whose selfie was used for verification, with locations showing as Hong Kong in at least three financial institutions.
However, the report did not disclose the names of these institutions.
Doctored document
On July 30, 2024, a corporate account for an oil and gas company was opened using doctored documents and a registered company number picked from the internet. Supporting documents were also fabricated to open the accounts.
- A total of N335 million from fraud proceeds was received on the same day the account was opened. The funds were then transferred to unlicensed Bureau De Change (BDC) operators in July 2024.
- NIBSS, in collaboration with law enforcement, managed to recover all the funds, and an account officer was found with incriminating documents by the Economic and Financial Crimes Commission (EFCC).
The NIBSS Fraud Report also highlighted that over one billion naira was moved using two accounts after Bank Verification Numbers (BVNs) were registered for two minors by compromised bank staff.
What you should know
An enterprise account was opened for the first minor using the BVN, receiving an estimated N495.3 million, which was later drawn down.
- Similarly, a BVN was registered for the second minor by a compromised agent, and an enterprise account for a bakery was opened with the BVN, into which an estimated N507 million was transferred and subsequently moved out.
- The report emphasized that the bank agent involved has been reported to law enforcement authorities for arrest, and engagement is ongoing with the bank regarding the role played by its staff in the fraud.
The NIBSS Fraud Report documents fraud activities, whether attempted or successful, and related metrics identified by local financial institutions or agencies. NIBSS is the central system responsible for the settlement of inter-bank transactions within Nigeria.
The platform connects Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Switches, and Payment Service Providers (PSPs). The NIBSS Industry Fraud Desk compiles all reported fraud incidents within a period, analyzes them, and delivers industry-wide reports.
