Right from when the BVN (bank verification number) was introduced in Nigeria in 2014, many of us have been worried about losing our funds to fraudsters who manage to lay hands on it. Well, the BVN isn’t your bank account’s password or your debit/credit card PIN. It’s just part of your financial information, and financial institutions like banks and loan apps like to call it an 11-digit financial identity card. This is true because it contains personal information about each holder. It’s a unique number every bank account holder must have.
And concerning the question, nobody can steal your money with your BVN. However, that does not mean that your BVN cannot be used as part of a process to withdraw your money without your consent.
As a Nigerian, the CBN (Central Bank of Nigeria) makes it mandatory to have a BVN. You can’t even open a new, fully verified bank account right now without providing your BVN.
What is BVN?
Your BVN is your financial identification, and it is unique to everyone. This ID is used in the Nigerian Banking industry to identify and verify at Point of Banking operations. The Central Bank of Nigeria introduced BVN to help manage identification, alongside any challenges banks and other financial institutions have been facing that has to do with customers’ identity.
Can Someone Use My BVN to Steal My Money?
Nobody can steal your money directly if they have your BVN. However, they can open a bank account in your name and use it for fraud if they discover the information associated with it. A BVN contains your facial recognition, and other personal information, including your full name, date of birth, and contact details.
Someone can use your BVN to take out loans in your name, leaving you with the responsibility of repaying it with interest to the lender. Loan sharks are the typical targets since it’s easier to obtain a loan here, sometimes without providing additional ID.
Some financial institutions, including banks and lenders, require other forms of identification before alongside your BVN, so you are mostly safe. This doesn’t mean you should publish your BVN on social media or give it to a stranger or any institution not authorized to request for it.
So, Why Do Financial Institutions Like Banks and Loan Apps Ask for My BVN?
The CBN makes it mandatory to have a BVN. But it’s not even about this. You can’t open a fully verified bank account without a BVN in the first place. It’s part of the KYC (know your customer) process you have to fulfill.
Let’s say you are taking a loan. The lender has to verify your Identity and confirm that you indeed own the account and are of age, typically at least 18 years old. Some lenders also use it to determine if you are Nigerian, as such loans may be limited to Nigerians. Note that no legit lender will lend you money without your BVN.
With your BVN, a lender or a bank can tell if you have multiple accounts with different banks. Each bank on the BVN will then be able to work together to offer you convenient services.
As for loan apps, it’s perfectly safe to share your BVN as long as you trust that app. The only concern should be what the lender can do with your personal information, including your name, facial image, and other personal information. A loan app can’t use your BVN to remove money from your bank account.
The information you should be mostly worried about is your credit or debit card details you enter in their app for the card binding and loan disbursement. This is because you have authorized the loan app to take money from your bank through your card whenever it’s time to pay back. A fraudulent loan app could still take money from your account whenever they feel like it.
Conclusion
See your BVN as your financial ID card, and only share it with authorized financial institutions. Do not give your BVN to a stranger or post it on social media for whatever reason. BVNs aren’t the only source of ID financial institutions require these days, so it’s less likely that with just your BVN, someone will steal money from your bank account.
