In 2014 the banking system in Nigeria began to use the Bank Verification Number (BVN) introduced by the Central Bank of Nigeria (CBN). The BVN was introduced to address safety of customers fund, avoid loses through compromise of personal identification numbers, prevent identity theft and check fraud. Its introduction was also to secure bank accounts from unauthorised access. The introduction of the BVN also simplified tracking of blacklisted bank customers.
According to the Nigeria Interbank Settlement Scheme (NISS), as at 2019, about 38.5 million accounts have been linked to BVN. The introduction of the BVN into banking system operations has indeed helped to secure bank customers’ accounts. There are rare tales of fraudulent access into bank account without authorization from the account owners since the introduction of the BVN. Any fraud done since its introduction can easily be linked to compromise of the BVN.
However in spite the warning issued by the CBN to all BVN holders not to release their BVN numbers to anyone, there have been increased request in various transactions for the numbers. These requests have been capitalised upon by fraudsters to defraud unsuspecting bank customers. In fact one of the second generation banks in the country had to warn its customers to be wary of messages demanding their bank and personal details like BVN, PIN, OTP, mobile app activation code or password.
Apart from fraudsters, public institution and corporate organisations also demand BVN from individuals to process loan request, generate Tax Identification Number, and other transactions.
If the CBN tells Nigerians that BVN should be guarded with all secrecy, it is however important that there should be mechanism that limit the demand of such details from customers. Requesting such information from bank customers outside banking services should however be discouraged, or at best be regulated by the CBN.
Information like BVN should be between the CBN, banks and customers. The CBN should provide guidelines for requesting for such details. We therefore advise that the Bankers’ Committee and the CBN should come up with a requesting model for customers BVN. This we are sure would reduce fraud and compromises associated with customers’ accounts.
The BVN has helped to secure details of bank customers, this the CBN and Bankers’ Committee have done to improve banking sector and its operations. The implementation of the BVN should however be improved upon to accommodate current realities and further protect the interest of customers and the credibility of the banking sector.
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