A Financial expert, Mr Tunji Adepeju, has clarified that recent guidelines on Bank Verification Number (BVN) are measures designed to fortify banking security and curb fraud.
Adepeju stated this in an interview with the News Agency of Nigeria (NAN), in Ibadan, on Tuesday, when speaking on what the recent BVN guidelines entails.
He said that contrary to some reports, the Central Bank of Nigeria (CBN) was not issuing fresh BVN numbers, but introducing stricter rules on how existing BVN-linked services must be used.
According to Adepeju, “CBN is not giving new BVN numbers. What the apex body is saying is that the phone number used in registering for BVN, must be the same used for transactions.”
He noted that another key changes is the restriction of mobile banking applications to a single device at a time.”
“Logging into a banking app on a new device, will automatically deactivate access on the previous device and trigger additional authentication checks,
“This is to ensure that banks can trace the exact device used for transactions,
“Each device has a different internet protocol address, making it easier to monitor suspicious activities.” Adepeju said.
He, however, noted that the policy could pose initial challenges for customers, especially in cases of lost or stolen phones.
“In such situations, customers may need to visit their banks physically to report and register a new device. It may be inconvenient at first, but banks are expected to provide solutions.” he said.
Adepeju also highlighted another major provision limiting the number of times a customer can change the phone number linked to their BVN.
“Under the new rules, you can only change your BVN-linked phone number once in your lifetime. This is largely to address SIM swap fraud, where criminals take over phone numbers to access bank accounts,” he said.
He advised customers to link their BVN to a secure and long-term phone number, preferably one tied to their National Identification Number (NIN).
The expert further explained that the measures were part of broader efforts to tackle rising fraud cases within the financial system.
He cited instances of large-scale fraud and insider abuses in the banking sector as justification for stricter controls.
“A lot of things are happening in the financial system. Although the regulators are trying to close gaps and improve monitoring by harnessing available databases,” he said.
Adepeju acknowledged concerns that the measures might not completely eliminate fraud, but said they would enhance traceability and reduce risks.
He added that transaction limits and authentication processes would also help prevent large-scale losses in cases of theft or coercion.
“In the end, it may be inconvenient for some users, but it is necessary to safeguard customers’ funds. We should allow the system to run and see how it evolves,” he said.
(NAN)
