BANK FRAUD ATTEMPT UP 28.2% 2017 IN NIGERIA -- CENTRAL BANK

The Central Bank of Nigeria says that attempt to defraud banks in Nigeria increased by 28.2% in 2017 when compared to 2016.

According to the 2017 Annual Report released this week, 25,043 frauds were attempted in 2017 compared to 19,531 in 2016.

However, the value of the attempted fraud decline slightly within the year. It dropped to N4.034bn from 2016's N4.368bn. This represents 7.65% drop and implies that fraudsters were less daring in 2017.

In the same vein, says the CBN, actual fraud value dropped by 25.7% in 2017 to N1.631bn compared to N2.196bn in 2016.

One of the measures introduced to help reduce fraud in the system was the Bank Verification Number (BVN) introduced under which banks were given December 2016 to link all customers accounts to their BVN or resort to "Post no debit".

They were also expected to by that date to correct invalid BVNs or delinked them and correct any BVN platform and core banking application mismatch by then.

According to the CBN, the follow up report released after the deadline showed that all banks complied with the post no debit directive, while 17 banks had some invalid BVNs and 20 still had some mismatch.

The causes of BVN invalidity included deletion of BVN after linkage, linking of accounts without validation and typographical errors.

In the case of mismatch, the causes were kids accounts linked to parents BVN, correction of name at enrollment after other banks had linked and typographical errors.

By December 2017, says the CBN, out of 66,974,029 active customer accounts in banks 43,959,282 were already linked to valid BVN registered by 31,426,091 customers.

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