- The Nigeria Inter-Bank Settlement System said banks and fintechs flouted the Central Bank of Nigeria’s policy on daily withdrawal limit
- It said a fraudster was able to withdraw N374 million from a wallet in a day against the CBN’s limit of N5 million withdrawal per day
- The NIBSS said the funds were transferred to gift cards/vouchers and subsequently withdrawn
The Nigeria Inter-Bank Settlement System (NIBSS) says Nigerian banks and financial technology (fintech) companies flouted the Central Bank of Nigeria’s (CBN) daily withdrawal limit on accounts and wallets.
It said a fraudster withdrew N374 million from a wallet in a day, against the CBN’s limit of N5 million withdrawal per day.
According to the NIBSS, seven other wallets received an estimated N438 million, which was also withdrawn like the first.
The NIBSS disclosed this in its latest Fraud Report, which documents fraud activities, whether attempted or successful, and related metrics identified by local financial institutions or agencies.
It said the action was a breach of Section 16.0 of Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements of the CBN Regulatory Framework for Mobile Money Services in Nigeria, which stipulates daily cumulative transaction limit (outflow) for Tier 3 to be N5 million.
“There were instances of one wallet receiving an estimated N374 million and the same instantly withdrawn.
“In the same incident, seven other wallets received an estimated N438 million and the same was withdrawn.
“Maximum transfer limit on wallet/accounts increased with no historical transaction to support such increase,” the NIBSS stated.
Fraud proceeds transferred to gift cards/vouchers
According to the report, funds from major fraud are transferred to accounts in financial institutions and thereafter transferred to gift cards/vouchers in other financial institutions.
The report stated that multiple transfers of N5 million and above are transferred to these vouchers and are instantly drawn down.
The NIBSS, however, did not mention the specific banks or fintechs, but said some financial institutions are notorious for these fraudulent transactions.
“The financial institutions always keep mum when inquiries of final beneficiaries are requested.
“Some financial institutions are notorious for this,” it stated.
Fraudsters stole N400 million through accounts opened with stolen identities
Recall that the NIBSS also disclosed that fraudsters stole approximately N400 million in 2024 through financial accounts opened with stolen identities.
It 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.
The NIBSS also 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 enterprise accounts were opened with the minors’ BVNs, which received an estimated N495.3 million and N507 million, respectively, that was later withdrawn.
Financial institutions lose N52.26 billion to fraud in 2024 – NIBSS
Meanwhile, TheRadar earlier reported that the Nigeria Inter-Bank Settlement System (NIBSS) said financial institutions in Nigeria lost N52.26 billion to fraud in 2024.
According to the latest Fraud Report of the NIBSS, the amount is N34.59 billion more than the N17.67 billion recorded in 2023.
