In a proactive move to address vulnerabilities exploited by fraudsters, two prominent Nigerian fintech companies, Opay and Palmpay, have announced significant changes to their customer account verification processes. The adjustments come in alignment with the Central Bank of Nigeria’s (CBN) directive and a recent revelation of loopholes in the system.
Opay’s Account Verification Changes:
Opay has introduced alterations to its account verification process to enhance security during onboarding. Customers will now be required to provide bank account verification, streamlining the authentication of Bank Verification Numbers (BVN). This process includes biometric validation, where Opay’s system verifies the user’s face with the BVN database and cross-checks with the user’s real-name. The addition of a one-time password (OTP) further certifies the authenticity of the user. Opay emphasizes that these changes align with the CBN’s guidelines mandating BVN/NIN verification for Tier 1 users.
Palmpay’s Enhanced Security Measures:
Similarly, Palmpay has rolled out a new in-app security version that mandates all new users to input their BVN or National Identification Number (NIN) before creating a wallet. This initiative is a response to the CBN’s recent directive aimed at strengthening the Know Your Customer (KYC) procedure for financial system stability. Chika Nwosu, Managing Director of Palmpay, assures users that these changes apply to both existing and new users with BVN or NIN. The company emphasizes the importance of users updating their KYC information on the app to ensure compliance with the directive.
Nwosu states, “We are committed to ensuring compliance and fostering a secure financial ecosystem. This measure will enhance the overall security of users’ wallets, protect users’ data, and provide seamless financial services.”
In light of concerns about weak customer security checks during onboarding, these proactive measures by Opay and Palmpay are expected to reduce fraudulent activities and create a more secure banking environment for all users.
