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Tag: BVN

  • 36.8m bank accounts linked to BVN – NIBSS

    36.8m bank accounts linked to BVN – NIBSS

    Records from he Nigerian Interbank Settlement Scheme (NIBSS) have shown that about 36.8 million bank accounts have been linked to the Bank Verification Number (BVN).

    This represents 51 per cent of the total number of active bank accounts as of February 17 2019.

    The number of active bank accounts, according to the NIBSS data, is 71.79 million.

    BVN is a unique number for customers of banks in Nigeria, which contains biometric details of customers including the fingerprint of all ten fingers and facial image.

    The Central Bank of Nigeria through the Bankers’ Committee and in collaboration with all banks in Nigeria launched a centralised biometric identification system for the banking industry in 2014.

    The biometric identification was introduced to address identity theft, reduce exposure to fraud and enhance the banking industry’s chances of being able to fish out blacklisted customers, among others.

    Analysis of the data showed that the total number of bank accounts as of the end of January 2019 was 118.9 million.

    According to the data, about 25.97 million current accounts were opened by bank customers while savings accounts reached 89.67 million as of January this year.

    The Director, Corporate Communications, CBN, Mr Isaac Okoroafor, reportedly said the incidence of abandoned accounts had always been a feature of the Nigerian banking industry for many reasons.

    He was quoted as saying, “A common reason is the cumbersome procedure of complete closure of an account. Many people in a hurry will withdraw to the last kobo possible and move on, abandoning the account for good.

    “There is also the dearth and the absence of knowledge of a bona fide heir to the estate or poor documentation for inheritance. In most cases, abandoned accounts carry relatively low balances compared to active ones, signifying lack of interest to pursue them. The banks, however, welcome such developments because the funds represent no-cost flow and eventual profits.”

     

  • CBN captures 31m Nigerians in BVN Project

    The Central Bank of Nigeria (CBN) has captured no fewer than 31 million account customers in its Bank Verification Number (BVN) project aimed at ensuring unique identifier in the Nigerian banking industry.

    CBN Director, Banking and Payment System, Mr Dipo Fatokun, disclosed this in a paper titled, `Nigeria’s progress towards the creation of a robust, trusted and inclusive Financial Services Environment’ delivered at the annual meeting of the ID4Africa movement on in Abuja.

    Fatokun said the CBN had also linked a total of 43,959,282 banks accounts in the BVN project.

    “To address the absence of a unique identifier in the Nigerian banking industry and to facilitate the creation of inclusive financial services environment.

    “The CBN in collaboration with the Bankers’ Committee launched the BVN Project on Feb. 14, 2014, with biometric solution, as a unique identifier for all bank customers.

    “The objectives includes the following: increase access, convenience, service levels across the industry; enable greater financial inclusion and integration of financial services into the economy, with its attendant positive impact on economic development,’’ he said.

    Fatokun said the BVN was also targeted at promoting safe and sound financial system in the country.

    He said that the BVN has helped in the provision of unique identity for customers that impact other areas such as credit check, and non-repudiation of transactions.

    According to him, the BVN has also helped to increase deterrent controls on financial transactions and reduce or mitigate fraud risk and identity theft.

    “Most importantly, it has created avenues for people who cannot write regular signature to make financial transactions, thus, facilitating financial inclusion.

    “As at December 2017, the implementation of the BVN Project recorded 31,426,091 registered BVNs and 43,959,282- accounts linked with BVN,’’ he said.

    Fatokun explained that the BVN was part of the Federal Government’s strategy towards accelerating financial inclusion in the country.

    “Nigeria launched its National Financial Inclusion Strategy in October 2012 with the goal of reducing the percentage adult Nigerians that are excluded from financial services from 46.3 per cent in 2010 to 20 per cent by 2020,’’ he said.

    Fatokun added that a number of factors were identified as barriers to financial inclusion among Nigerians.

    “The identified barriers to financial inclusion include lack of income, long distance to access points, lack of knowledge about financial services, high cost of services and cumbersome requirements for account opening.

    “In order to achieve the set target, and to address the aforementioned barriers, different measures and initiatives were put in place by the CBN.

    “To address the cumbersome documentation requirement for account opening, the CBN introduced the Three-tiered Know-Your-Customer (T-KYC) in 2013, which was modified in July, 2016.

    “The three-tiered KYC guideline allows individuals who may not meet the formal identification requirements and in banks to operate and enjoy banking services within defined thresholds.

    “The simplification consists of lowering the account opening requirements and less-paper documentation in exchange for lower threshold.

    “The CBN T-KYC is one of the initiatives for improving financial inclusion in Nigeria to facilitate easy access to a broad range of formal financial services,’’ he said.

  • FG set to seize funds in accounts without BVN

    FG set to seize funds in accounts without BVN

    Justice Nnamdi Dimgba of the Federal High Court in Abuja has granted a request by Attorney General of the Federation, Abubakar Malami, for a temporary forfeiture of all funds held in bank accounts not linked to BVNs.

    The latter are accounts without sufficient know-your-customer credentials, PREMIUM TIMES has reported. .

    The order followed an originating motion of notice filed by Mr. Malami on behalf of the Nigerian government on September 28. Justice Dimgba granted all the nine reliefs sought by Mr. Malami —himself represented by a lawyer, Usman Dakas— on October 17.

    The court ordered all the 19 deposit money banks, DMBs, operating in the country to release to Nigerian government names of accounts not yet connected to BVN; account numbers; their outstanding balances; domiciling locations; and domiciliary accounts without BVN and where they are domiciled.

    Nigeria deposit money banks that were listed as respondents in the ex-parte suit are: Access Bank, Citi Bank, Diamond Bank, Ecobank, Fidelity Bank, First Bank and First City Monument Bank. Others are: Guaranty Trust Bank, Heritage Bank, Keystone Bank, Skye Bank, Stanbic IBTC Bank, Standard Chartered Bank, Sterling Bank, Union Bank and United Bank for Africa.

    The remaining three are: Unity, Bank Wema Bank and Zenith Bank. The court also ordered all of them to disclose any investments made with funds and to withhold authorisation for any outward inflow of funds from the accounts.

    All the details are to be submitted to Nigeria Inter-Bank Settlement System, NIBSS, and the CBN for authentication.

    The banks were also directed to publish all bank accounts not linked to BVN in national newspapers with a 14-day notice for individuals with interest in such accounts to come forward and justify why their funds should not be forfeited to the Nigerian government.

    Mr. Dimgba also ordered the CBN, which was joined as 20th respondent alongside the 19 DMBs, to appoint an official who will examine all the details submitted to the apex bank for compliance. The government argued the matter under Section 3 of the Money Laundering Act, 2011.

    The section said banks must “ensure that documents, data or information collected under the customer due diligence process is kept up-to-date and relevant by undertaking reviews of existing records, particularly for higher risk categories of customers or business relationships.”

    The Bank Verification Number is a unique identification number that can be verified and used to transact business across all the banking platforms in Nigeria.

    The CBN imposed the policy to capture customers’ data for financial transactions and check fraud in the banking system. Registration for BVNs commenced on February 14, 2014, across the country.

    The CBN said over 20.8 million customers enrolled 40 million bank accounts before the October 31, 2015, final deadline for customers residing within the country.

    The CBN extended the deadline for Nigerians in the diaspora to December 2016 to sign up for the BVN system. But hundreds of thousands home and abroad are still believed to be left behind.

  • BVN: CBN directs banks to keep database of fraudulent customers

    The Central Bank of Nigeria (CBN) on Thursday ordered banks to establish a database of customers identified through their Bank Verification Numbers (BVNs) as fraudsters.

    The directive was contained in the Regulatory Framework for Bank Verification Number (BVN) Operation and Watch-list for Nigerian Financial System released by the CBN.

    According to the apex bank, the implementation of the framework takes immediate effect.

    The Director Banking & Payments System of the regulatory bank, Dipo Fatokun, who signed the framework, said bank customers are to abide by the regulatory framework for BVN operations and the watch-list for the Nigerian Banking Industry and also report all suspicious or unauthorised activities on their accounts.

    TheNewsGuru.com reports that recent data from the CBN showed that Nigeria experienced a total of 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last one year mainly through cross channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

    Although e-fraud rate in terms of value dropped by 63 per cent, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent.

    The new regulation is expected to assist the CBN to a great deal, in curbing the menace of fraudsters

    According to Fatokun, the new framework is in exercise of the powers conferred on the CBN, by Sections 2 (d) and 47 (2), of the CBN Act, 2007, to promote the development of efficient and effective payments systems for the settlement of transactions.

    He said the framework provides standards for the BVN operations and watch-list for the Nigerian Banking Industry. The watch-list comprises a database of bank customers’ identified by their BVNs, who have been involved in confirmed fraudulent activity in the banking industry in Nigeria.

    Fatokun said the regulatory framework shall guide activities of the participants in the provision of the BVN operations in Nigeria and that the CBN, Nigeria Inter-Bank Settlement System (NIBSS), Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Bank Customers are participants in its implementation.

    He said the CBN, in collaboration with the Bankers Committee, proactively embarked upon the deployment of a centralized BVN System and launched the BVN in February, 2014. This, he said, is part of the overall strategy of ensuring effectiveness of the Know Your Customer (KYC) principles, and the promotion of a safe, reliable and efficient payments system.

    The BVN gives a unique identity across the banking industry to each customer of Nigerian banks.

    “This framework also defines the establishment and operations of a Watch-list for the Nigerian Banking Industry, to address the increasing incidences, of frauds, with a view to engendering public confidence in the banking industry.

    This framework, without prejudice to existing laws, is a guide for the operations of the watch-List in the Financial System”.

    The Watch-list is a database of bank customers identified by their BVNs, who have been involved in confirmed fraudulent activities.

    The framework is expected to clearly define the roles and responsibilities of stakeholders; clearly define the operations of the BVN in Nigeria; define access, usage and management of the BVN information, requirements and conditions and provide a database of watch-listed individuals.

    It is also expected to outline the process and operations of the watch-List and deter fraud incidences in the Nigerian Banking Industry.

    In implementing this framework, the CBN is expected to approve the Regulatory Framework and Standard Operating Guidelines as well as approve eligible users for access to the BVN information.

    The Nigeria Interbank-Settlement System (NIBSS) is to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN while the banks are to ensure proper capturing of the BVN data and validate same before the linkage with customers’ accounts.

     

  • 6 tricks financial fraudsters use to steal your money

    6 tricks financial fraudsters use to steal your money

    You could have been the victim of this terrifying crime or had calls from some fraudsters, or most probably know someone who has been.

    Usually, they will tell you they are your friend abroad and ask you to guess their names or even tell you they work with Dangote cement that there is this contract on offer they want you to grab.

    There are so many phone scams these days that you would think the Nigerian Communications Commission Do-Not-Disturb policy is mere child’s play.

    ImageFile: BVN fraudster SMS
    Scam SMS financial fraudsters send to victims

    It is like clockwork. You sit down to eat dinner and your phone starts ringing incessantly or some disturbing text messages start bumping in for you to call a certain number to re-activate your Bank Verification Number (BVN).

    Of course, they want your money. You might think, “how can anyone be tricked by these people?”

    Well, it turns out that they use scientifically proven techniques to convince you or your elderly loved ones, that they are who they claim to be. They will convince you that they are trying to be helpful. They will even tell you they know you from your place of worship.

    There are six techniques they use to convince you to give them your money. Do you know these six tricks?

    6 tricks phone scammers use

    We do not want you to be the next victim of a phone scam. Nigerians lose millions of nairas every year to phone scams.

    Here are six ways they convince you to pay up.

    1. They will call, tell you they are your friend abroad and ask you to guess their names or tell you “you need to re-activate your BVN”
    2. Any name you mention, they will go with it, and they will make you start even talking about the person you mentioned (that they do not know) the more. Then they will mention your names and share information about you to gain your trust
    3. They will welcome your skepticism, saying they understand your concerns
    4. Scammers will lie about who they are, and where they work, whether they say they are with Zenith, GTB, or Fidelity banks or they will tell you they are Dangote staffs, or some other reputable companies
    5. They will take their time to explain who they are and why they are calling
    6. They will ramp up their pressure and threats by changing the tone of their voice, especially when the narration is not going as they have planned it

    It is really important that you never share personal information, such as your address, with anyone over the phone. Of course, never give your credit card information or bank account numbers to anyone, unless you contact them first.

    How to outwit phone scammers

    1. Stay cool, be in control of the phone call
    2. Do not let them rush you. At least waste the scammer’s airtime — a call offering a 10 million naira contract should last at least 5 or more hours (i.e. if you have the time anyways)
    3. But, most importantly, pay attention to your intuition

    The most effective tool you have with phone scams is your power to hang up. If someone starts asking you for personal information or for money, immediately hang up.

    If you are worried that the person calling could have been from your bank, go to your bank; or from a reputable company, find the genuine website of the company and look for contact information. Then, you call them.

     

    Read: Best way to block spam calls on your Smartphone

     

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  • Financial sector loses N2.19bn to fraudsters

    The nation’s financial sector lost N2.19 billion to fraudsters in 2016, according to Annual Report of the Nigeria Electronic Fraud Forum (NeFF), released in Abuja.

    According to the report, the actual money lost to fraudsters is slightly less than the N2.256 billion recorded in 2015.

    However, the volume of fraud cases jumped to 19,531, against 10,743 cases in 2015, an indication that the financial system had increasingly suffered attacks from fraudsters.

    The report noted that the attempted fraud value in the year under review slightly decreased to N4.368 billion from the 2015 figure of N4.374 billion.

    The report indicated that some banks shield fraudsters in the financial system by refusing to expose them, thereby making it easy for such criminals to continue in their evil.

    It said that 1,020 were those who benefitted from fraud in the year under review but that the affected bank sent the Bank Verification Number, BVN, of a mere 217, representing 21 per cent of them.

    It said, “It is quite unfortunate that despite several awareness and tips about BVN watch-list, some institutions still refuse to send BVNs of their customers who have been involved in fraudulent acts for watch-list, thereby leaving these fraudsters free in our ecosystem and subsequently perpetrating more fraud .

    “Out of the 1, 020 unique individuals who were beneficiaries of fraudulent transactions in 2016 across listed channels, only 217 BVNs were sent to the NIBBS (Nigeria Inter-Bank Settlement System) for watch-listing.

    “If we do not cut off these unscrupulous elements from the financial ecosystem, they will continue to migrate from one institution to another wreaking more havoc.

    Also, the report revealed that the Nigerian investing public lost N11.9 billion to the Mavrodi Mundial Moneybox, MMM, Ponzi scheme.

    It indicated that Nigerians invested over N28.7 billion in the scheme between June and December 2016.

    The report also showed that the N28.7 billion was money that passed through the NIBSS, involving only 14 banks that are currently on the NIBSS industry Anti-fraud System, HEINDALL, an indication that the aggregate amount Nigerians invested in the MMM and the loss could be much higher than the above figures.

    Commenting on the fraud in the banks, the Central bank of Nigeria (CBN) Deputy-Governor, Operations, Mr. Adebayo Adelabu, noted that advancement in technology on which the country drive modern businesses presented great challenges to check the activities of fraudsters.

    “Today, not only are there more Internet users in developing countries than in developed ones; almost all critical sectors of many developing economies have adopted and currently are utilising ICT to deliver sensitive services in shared, interconnected, real time, and interdependent ecosystems.

    “This is the situation in our country, with the financial services sector being a shining example,’’ he said

  • Jonathan developed framework for whistle-blowing, TSA, BVN, others – Rep

    Jonathan developed framework for whistle-blowing, TSA, BVN, others – Rep

    …says National Assembly will pass whistle blowing bill soon

    A member of the House of Representatives, Abiodun Olasupo (representing APC- Iseyin/Iwajowa/Kajola/Itesiwaju Federal Constituency) has said former President Goodluck Jonathan’s administration developed the framework for the whistle-blowing, Treasury Single Account (TSA) and Biometric Verification Number (BVN).

    Olasupo also said the bill on whistle blowing is at an advanced stage of being passed by the National Assembly.

    He noted that the National Assembly was working hard to ensure that all enabling laws protect the identity of whistle blowers and strengthen the principle.

    The federal lawmaker spoke in Iseyin during a routine tour of his constituency to inaugurate projects and brief constituents.

    “You should not be surprised that all the measures used in the anti-corruption crusade today were developed by President Goodluck Jonathan’s administration.

    “The Jonathan administration developed the policies of whistle blowing, Bank Verification Number (BVN), Treasury Single Account (TSA) but lacked the political will to implement them.

    “You can see that the implementation by President Muhammadu Buhari’s administration is bringing the desired results,’’ he stated

    Reacting to the N125 billion National Assembly Budget for 2017, he said that the budget was only N10 billion above that of 2016.

    The lawmaker stated that the increment in the budget was not limited to the National Assembly alone, but also affected the State House, Judiciary, Nigeria Customs Service and other parastatal agencies.

    “When the 2017 Appropriation Bill is signed into law by the president or Acting President, it would be accessible to all and you will see that it was increased across board.

    “When you look into the budget and do the analysis properly, I am sure you will believe that the National Assembly is one of the most poorly funded arms of this government.

    “For the first time in the history of the nation, the eighth National Assembly made the details of the budget public and you will see a budget of economic recovery.

    “The old, present and future National Assembly members should know that legislatures the world over cannot win popularity contest when it comes to budgeting,’’ he said.

    Appraising the implementation of the 2016 budget, Olasupo said it was the first time the budget of the country passed the threshold of N1 trillion in terms of capital expenditure.

    He said that apart from this, funds were judiciously used inspite of the nation’s low income.

    The lawmaker also said that it was the first time in a long while that there was a budget of less than 30 percent capital expenditure and over 60 percent recurrent expenditure.

    “This is a very good development for the nation and I am sure that by the time
    the 2017 budget is fully implemented, we would be a little over 40 percent in terms of capital expenditure.

    “When Buhari came on board, he said that he was looking forward to seeing more of the budget going for capital expenditure and lower recurrent expenditure,’’ he said.

    Olasupo, however, dismissed the speculations that there was a face-off between the executive and the National Assembly.

    “It might look like we are antagonising each other but that is what we are meant to be doing. It is out of this that we put many things in the right shape.

    “The separation of power principle entrenched in the constitution encourages checks and balances.

    “What the people are seeing is democracy in action. This will not affect the development of the nation.

    “ Nigerians should not be afraid, we are doing what the law empowers us to do,’’ he said.

    The lawmaker, however, promised not to relent in giving the quality representation required of him in the National Assembly.

     

     

     

    NAN

     

  • CBN to deactivate accounts not linked to BVN August 1

    The Central Bank of Nigeria (CBN), on Monday, said it will effective from August 1, 2017, deactivate accounts of customers whose Biometric Verification Number (BVN) have not been linked to their accounts.

    The Director, Other Financial Institutions Supervision Department, Mrs. Tokunbo Martins, disclosed this in in a circular on Monday.

    Martins explained that the CBN’s proposed deactivation will affect both customers of Deposit Money Banks (DMOs) and Other Financial Institutions (OFI).

    She noted that due to broken identification link in the banking system, it became necessary to extend the BVN enrolment to the customers of OFI especially those located in the rural areas of the country, and have customers that may not have enrolled with the DMBs.

    According to her, the BVN enrollment will support the achievement of zero default credit targets set for the participating Financial Institutions (FPIs) in the Micro, Small and medium Enterprises Development Fund (MSMEDF).

    “It will also open opportunities for credit to millions of Nigerians without standard means of identification,” she explained.

    She highlighted that OFIs are required to enroll their customers on or before July 31, 2017; conspicuously display notices sensitising customers on BVN in the banking hall; ensure that all new customers have BVN and forward to the Director, Other Financial Institutions Supervision Department schedule of customers account with BVN on August 7, 2017.

    She explained further that the absence of identifier in the banking industry has been a major challenge inhibiting the effectiveness of the Know Your Customers (KYC) principle.

    “To address this challenges and complement the existing means of identifications of customers, which include; the Driver’s License; the international/passport; the National identity card; and the permanent Voter’s card; the CBN, in collaboration with the banker’s Committee, launched the BVN project in February 2014.

    “The BVN is expected to also minimise the incidence of fraud and money laundering in the financial system, as well as enhance financial inclusion,” Martins explained.