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- Fraudsters stole N400 million in 2024 through accounts opened with stolen identities, according to the Nigeria Inter-Bank Settlement System
- The NIBSS said the identities of senior citizens were stolen and accounts were opened in their names
- It also stated that fraudulent accounts were opened for two minors
The Nigeria Inter-Bank Settlement System (NIBSS) says fraudsters stole approximately N400 million in 2024 through financial accounts opened with stolen identities.
This is according to the latest NIBSS Fraud Report, which documents fraud activities, whether attempted or successful, and related metrics identified by local financial institutions or agencies.
The report stated that the identities of senior citizens were stolen, and accounts were opened in their names, adding that the estimated N400 million proceeds from fraud were transferred into these accounts and subsequently withdrawn.
Details of fraudsters’ operations
The NIBSS report stated that the financial accounts through which the N400 million was stolen were operated by an individual from Asia whose selfie was used for verification.
It stated that the locations were showing as Hong Kong in at least three financial institutions, whose names the NIBSS did not disclose.
According to the report, a corporate account for an oil and gas company was opened on July 30, 2024, using doctored documents and a registered company number picked from the internet.
The supporting documents were also fabricated to open the accounts.
The report further disclosed that a total of N335 million being fraud proceeds was received on the same day the account was opened.
It added that the funds were then transferred to unlicensed Bureau De Change (BDC) operators in July 2024.
The NIBSS disclosed that in collaboration with law enforcement, it managed to recover all the funds, and an account officer was found with incriminating documents by the Economic and Financial Crimes Commission (EFCC).
Fraudulent accounts were opened for two minors
The NIBSS Fraud Report further revealed that over N1 billion was moved using two accounts after Bank Verification Numbers (BVNs) were registered for two minors by compromised bank staff.
It said an enterprise account was opened for the first minor using the registered BVN, which received an estimated N495.3 million that was later drained.
According to the report, a BVN was registered for the second minor by a compromised agent, which was used to open an enterprise account for a bakery.
It said an estimated N507 million was transferred into the account and subsequently moved out.
The report added 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.
5 common scams every Nigerian should be aware of
Meanwhile, TheRadar earlier reported that scams in Nigeria had become a prevalent issue that affects many Nigerians daily. Unlike international fraudsters who target foreign, dollar-earning victims, local scammers typically target unsuspecting individuals in the country.
These frauds are often carried out through simple but cunning methods, often ranging from small-scale financial fraud to petty online fraud, and these five common scams.
