Fakoyejo OlalekanBank accounts not linked to Bank Verification Number (BVN) system will be closed down by the financial regulator, the Central Bank of Nigeria (CBN).
The central bank said it will take the step to crack down on fraud, as the accounts without BVN are the most prone to attacks within the banking system.
Join our WhatsApp ChannelAccording to the CBN’s Risk Management Department and Chief Risk Officer, Blaise Ijebor, who made this known on Thursday, 6 April 2023, cybercriminals exploit accounts that are not connected to the BVN system.
In Nigeria, there are about 13 commercial banks, some of which are Stanbic IBTC, Fidelity Bank, Zenith Bank, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA) and Access Bank.
Over 134.39 million accounts are not linked to the BVN system according to data obtained from the Nigerian Inter-Bank Settlement System (NIBSS).
While there are 133.5 million active accounts, out of the total 191.4 million bank accounts in Nigeria, only 57.01 million are registered on the BVN system.
The CBN director said the majority of the accounts at risk are on the platform of digital banks or fintech firms, as most of them haven’t fully complied with the CBN regulatory requirements.
Ijebor said there are three loopholes; the first being the lack of BVN, failure to meet regulatory requirements and other unseen vulnerabilities.
“This account is dominated by digital banks or fintech firms, and often lacks BVN linkage, which makes it an easy entry point for hackers.
“Secondly, some banks, especially digital ones, may not meet regulatory requirements, creating a second loophole for fraudulent activity.
“Lastly, hackers can exploit any vulnerability to gain access to bank accounts,” Ijebor said during the Prembly Compliance Breakfast Dialogue.
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