Fraud Alert: Opay and Palmpay Implement Account Changes in Response to CBN Directive

In response to a recent Central Bank of Nigeria (CBN) directive and growing concerns over fraud loopholes, two prominent Nigerian fintech companies, Opay and Palmpay, have announced significant changes to their account verification processes.

Opay’s Account Verification Update:

Opay has introduced a new method for securing bank accounts during the onboarding process. Customers are now required to provide bank account verification to authenticate their Bank Verification Number (BVN). The move aims to enhance security and align with the CBN’s guidelines mandating BVN/NIN verification for Tier 1 users. The process involves biometric validation, face verification with the BVN database, and an OTP process to certify user authenticity.

Palmpay’s Security In-App Version:

Palmpay has responded with the launch of a new security in-app version, making it mandatory for all new users to input their BVN or NIN numbers before creating a wallet. This update is a proactive measure to strengthen the Know Your Customer (KYC) procedure and improve overall user security. Chika Nwosu, Managing Director of Palmpay, emphasized the commitment to compliance and the creation of a secure financial ecosystem. Users are encouraged to update their KYC information on the app to ensure compliance with the CBN directive.

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Compliance with CBN Directive:

Both Opay and Palmpay’s initiatives are aligned with the CBN’s recent directive aimed at promoting financial system stability by reinforcing KYC procedures. The changes are designed to address weak security

checks during onboarding, minimize fraudulent activities, and provide a safer banking environment for users.

Opay’s Statement:

Opay’s statement emphasizes the convenience of bank account verification, especially for users who may forget their BVN. The company’s commitment to biometric validation, face verification, and OTP processes underscores its dedication to meeting the latest CBN guidelines for Tier 1 users.

Palmpay’s BVN or NIN Requirement:

Palmpay’s decision to require BVN or NIN input from new users is a strategic response to concerns about weak customer security checks. Chika Nwosu reiterated the company’s commitment to compliance and the creation of a secure financial ecosystem. The additional step of face recognition after BVN or NIN input aims to further limit incidents of impersonation.

As Nigeria’s fintech landscape evolves, Opay and Palmpay’s proactive measures demonstrate their commitment to user security and compliance with regulatory directives. These changes are not only responses to recent fraud concerns but also contributions to building a more secure and resilient financial ecosystem in Nigeria.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Users are encouraged to stay informed and follow the guidelines provided by the respective fintech platforms and regulatory authorities