The Nigerian Fintech sector has remained in the news these past few weeks as the Central Bank of Nigeria, Nigeria Inter Bank Settlement System and Financial Service Providers like Opay, Palmpay and the rest keep popping up on social media and the web with one story to another.
Earlier in the month, We reported that NIBSS circulated a memo with a list of Fintechs and service providers to be delisted from non-deposit transactions from commercial banks. Almost immediately, top Fintech operators in the country, including Opay and Palmpay rushed out to assure Nigerians that their money is safe with them. Well that doesn’t seem to be the case right now. Findings have shown that the service provider’s security system is very porous and customers stand a high risk of losing their money.
In the fast-evolving world of digital finance, convenience often comes at a cost, and recent events in Nigeria shed light on a perilous loophole in the account creation processes of popular platforms like OPay and PalmPay. Through personal stories collated by StartupsVibes, we aim to unravel the disconcerting incidents of identity hijacking, financial losses, and the potential ramifications of these security lapses.
Before we delve into the matter at hand, here are previous links you can click to be informed of the story from the very beginning in case you missed them.
So we started off with how Fintech Companies Assured Nigerians That ‘Their Money Is Safe’ Despite NIBSS Warning.
We also hosted a Twitter Space and had a Chartered Accountant, Iheonu Nkechi Gloria as a guest speaker who enlightened us on the topic – The Recent NIBSS Memo And What It Means for Nigerian Fintechs.
For those who missed The Startups Space, we had a Recap of it on the StartupsVibes Tabloid. So if you also missed that, here it is >>> The Startups Space Recap: Understanding CBN, NIBSS Move to Regulate Fintechs in Nigeria
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Today, I’ve got a wild story about something you might not think about every day – the safety of your money in digital wallets like OPay and PalmPay. So, grab a seat, and let’s dive into the world of online money adventures.
My Parent’s Oops Moment: When Their Phones Went Missing
My sweet parents lost their phones, and that’s where the trouble began. Some sneaky customer came to my mother’s shop and got his hands on their phones and info and used it to make fake OPay accounts. He used the accounts to fund various online sport betting accounts till there was almost nothing left in the accounts. How did they even do that without special codes like BVN or NIN? Good question.
The Sneaky Scam Spreads: From Fintech to Social Media
The plot thickens as this sneaky scam targets topnotch personalities in the Entertainment Industry like Festival Impresario Ayoola Shadare and Musician C-MION. Even I got a fishy message, pretending to be from both of them, asking for quick cash to their Opay account showing their details. Crazy, right?
The Big Reveal: OPay’s Secret Weakness
So, we did some digging, and guess what? We found a big hole in OPay’s system. They’ve got this easy-peasy way to create accounts called “Verify with bank account.” It lets tricksters use just a phone number, a face pic, and any random name and address. Yup, it’s that simple.
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PalmPay’s Little Oopsie: You Can Be Anyone
Now, PalmPay’s got a similar trick up its sleeve – the “verify with bank accounts” thing. But here’s the kicker: it didn’t work when we tried it. Still, you can make a PalmPay account with any name, and guess what? No checks needed! You can splash around ₦50,000 without anyone batting an eye.
The Real Deal: Money Troubles in Nigeria
These stories aren’t just one-offs. It’s part of a bigger problem – money mischief in Nigeria. Banks and regular folks are losing tons of cash. People are pretending to be banks when they’re not, and that’s got the big bosses worried.
Watch Out for Digital Dangers: Easy Money Can Be Easy Trouble
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As we’re all jumping onto the digital money train, scams like these are becoming more common. Late reporting of these scams makes it even tougher to catch the bad guys. One guy got caught using someone else’s info to open accounts on OPay, PalmPay, and others, taking ₦771,000 from the poor victim.
So, what’s the deal with the Central Bank of Nigeria? Are they onto these problems? That’s the big question as we dig into the mystery of OPay and PalmPay’s digital drama. Stay tuned, and remember, keep your digital cash safe out there!
Do you have a similar experience, a story or an opinion to share on the topic? Join the discussion in the comment section.