CHAPTER ONE

INTRODUCTION

This research study can never be complete without first defining the concept of Bank Verification System in Nigeria. The Bank Verification Number commonly called BVN is a biometric identification system implemented by the Central Bank of Nigeria to curb or reduce illegal banking transactions in Nigeria. It is a modern security measure in line with the Central Bank of Nigeria Act 1958 to reduce fraud in the banking system.

However, risk, safety and security in the banking industry remain a critical elements, although not only for the banking sector, but also for Nigerian populace. Banks stand or fall on confidence, trust and sturdiness; People entrust their funds to banks, because they are confident the bank will be there for a long time and they will get their money as at when needed. They risk their funds because they see banks as safe and secured places.

Before the implementation of BVN in 2015, “The 2014 Annual report of the Nigeria Deposit Insurance Corporation (NDIC), shows that, between year 2013 and 2014, fraud on e-payment platform of the Nigerian banking sector increased by 183 per cent. Also, a report published in 2014 by the Centre for Strategic and International Studies, UK, estimated the annual cost of cybercrime to Nigeria at about 0.08 percent of GDP, representing about N127 billion.The money lost due to poor banking security and policy implementation by CBN would have been channel into the development of Banking industries.

The introduction of BVN in the banking sector by CBN in 2015 has drastically recorded a significant success, thereby reducing risks. This alone has built confidence in the populace to use the services offered by banks. Hence, this study will tends to analyze the significant impacts of BVN on the development of Banking Industry and how the BVN has reduces cybercrime in the banking industry.