Customers of PalmPay, who have previously confirmed their bank verification number (BVN) or national identity number (NIN) but fail to reverify it by January 31, 2024, will be blocked by the fintech company. Additionally, user accounts will be frozen if they don’t validate their BVN or NIN by March 31, 2024.
This move aligns with the Central Bank of Nigeria’s (CBN) directive that accounts not associated with a BVN or NIN by April 2024 will be suspended due to reported incidents of fraud and identity theft.
PalmPay previously implemented NIN and BVN requirements for opening wallets. PalmPay Nigeria’s Managing Director, Chika Nwosu, has advised customers to update their KYC details for uninterrupted service and reiterated the firm’s dedication to ensuring a secure financial environment.
PalmPay affirmed that improved support operations have been established to assist users in this process. Parallelly, OPay, another fintech company, announced on January 24, 2024, that it would start blocking customer accounts that don’t meet KYC standards, in order to strengthen its security measures and prevent fraud and impersonation. This enforcement would begin as early as March 2024.
The fintech company announced that it will be eliminating fraudulent accounts from its platform. This is in line with the directive of the Central Bank of Nigeria (CBN) issued in December 2023, stating that accounts without a BVN or NIN would be frozen by April 2024, in an effort to enhance the stability of the financial system and fortify the ‘Know Your Customer’ procedures across financial institutions.
Moreover, the Apex Bank has partnered with the Nigerian Inter-Bank Settlement System (NIBSS) to combat fraud arising from weaknesses in Tier 1 bank accounts, which are a key target for fraudsters.
Tier 1 bank accounts, while having a daily transaction limit of ₦50,000 and a maximum balance of ₦300,000, are generally not linked to the BVN, making them particularly vulnerable to fraudulent activities. The CBN emphasized that these accounts are often used by customers with limited knowledge about cybersecurity, raising their susceptibility to fraud.
