OPay Takes Firm Stand Against Fraud: Accounts Without KYC Compliance to be Blocked Starting March 1, 2024
In a decisive move to enhance the security of its platform, OPay, a prominent Nigerian financial technology firm, has announced that it will be removing fraudulent accounts and blocking those that are not compliant with Know Your Customer (KYC) requirements. The enforcement is set to take effect from March 1, 2024.
KYC, a process pivotal for banks and financial institutions, involves the collection of information about the identity and address of customers. This stringent procedure is designed to prevent the misuse of banking services and bolster the overall security of the financial ecosystem.
The decision by OPay comes in the wake of a recent report that highlighted potential gaps in the company’s registration and verification processes for new customers. Addressing these concerns, Olayemi Precilia, the Director of Cards Business at OPay, emphasized that security measures have been significantly upgraded. New customers, in particular, will now be required to provide their National Identity Number (NIN) during the account opening process.
Precilia clarified, “When you log into your app and you have a tier one account and you don’t have your NIN, it will ask for your NIN. You cannot move forward without inputting that NIN. So, that is one of the things we’ve already done.” Additionally, she outlined that new customers would commence their OPay journey with the NIN, with information seamlessly integrated into their wallets, starting next month.
Ikponmwosa Kolawole Odiase, OPay’s Director of Partnerships, emphasized the company’s commitment to addressing the issue of fraudulent accounts. Odiase stated, “Fraudulent accounts will be yanked off our system,” underlining the seriousness with which OPay is approaching this matter.
Moving forward, customers will be mandated to link their accounts with both their NIN and Bank Verification Numbers (BVNs). Odiase further addressed concerns about the efficacy of facial verification on the application, revealing plans to deploy a system involving backend verification of customers’ facial features with BVNs and NINs.
In collaboration with relevant stakeholders, including regulators and KYC agencies, Odiase emphasized that this proactive stance is part of a broader industry effort to curb fraud. He acknowledged the challenges posed by fraudsters and stressed the collective responsibility of the industry to stay vigilant against these threats. With a clear timeline set for March 1, 2024, OPay aims to create a more secure environment for its users while mitigating the risks associated with fraudulent activities.
