Nigerian fintech giant OPay has announced plans to enforce stricter Know Your Customer (KYC) regulations starting March 2024. This move follows recent reports of fraudulent activities conducted through OPay accounts, including fake identities and unauthorized account access.
Addressing Security Concerns: The company acknowledged concerns raised by a customer on social media and a Techpoint Africa article highlighting vulnerabilities exploited by fraudsters. In response, OPay pledged to:
Remove fraudulent accounts: "So many fictitious accounts will definitely go," affirmed Ikponmwosa Kolawole Odiase, Director of Partnerships at OPay.
Implement stricter verification: New users will now be required to open accounts using their national identity number (NIN), while existing tier-one accounts without NIN will be prompted to update their information.
Enhance facial verification: OPay is developing a system to cross-check customers' facials with their BVNs and NINs, addressing previous limitations in facial verification technology.
Strengthen security measures: Olayemi Precilia, Director of the Cards Division, confirmed upgrades to platform security, including mandatory NIN entry for certain transactions.
Partnership for Secure Transactions: Furthering its commitment to combatting fraud, OPay recently partnered with Interswitch. This collaboration leverages the Interswitch Payment Gateway (IPG) to provide secure and seamless payment options for users.
Central Bank Policy Aligns with OPay's Move: Notably, the Central Bank of Nigeria (CBN) announced in December 2023 that bank accounts without BVN or NIN would be frozen by April 2024. This nationwide policy aligns with OPay's focus on strengthening KYC procedures and promoting financial system stability.
OPay's proactive approach towards enhanced KYC and secure transactions demonstrates its commitment to protecting users and fostering a trustworthy financial ecosystem in Nigeria.
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