Nigerian FinTech Giant OPay Bolsters Security with Stringent KYC Measures

OPay Unveils Major Security Update: Stringent Measures to Safeguard Customer Deposits

In a strategic move to enhance platform security, OPay, a prominent Nigerian financial technology company, has declared a significant security update set to roll out on March 1, 2024.

The update includes the removal of fraudulent accounts and a strict enforcement of Know Your Customer (KYC) requirements.

KYC Compliance as a Security Safeguard: Strengthening Platform Integrity

The KYC process, a standard banking practice, involves the verification of customer identity and address to prevent the misuse of banking services.

OPay’s decision to prioritize KYC compliance is driven by the goal of fortifying the security of the platform and protecting customer deposits from fraudulent activities.

Addressing Vulnerabilities: Response to Concerns and Upgraded Security Measures

The announcement follows a report highlighting vulnerabilities in OPay’s registration and verification process for new accounts.

Olayemi Precilia, the director of cards business at OPay, responded to concerns, assuring that the platform’s security measures have undergone significant upgrades.

National Identity Number (NIN) Requirement: March 1 Deadline for Compliance

OPay customers are urged to update their account details promptly to meet KYC requirements and avoid inconvenience.

Starting from March 1, new customers will be required to provide their National Identity Number (NIN) as part of the account opening process.

Removing Fraudulent Accounts: Ongoing Measures for Platform Purity

Opay’s director of partnerships, Ikponmwosa Kolawole Odiase, emphasized the removal of fraudulent accounts from the system.

Going forward, customers will need to link their accounts with both NIN and bank verification numbers (BVNs) to ensure comprehensive security measures.

Facial Verification Enhancement: Collaborative Approach to Combat Fraud

Addressing concerns about facial verification, Odiase revealed plans to deploy a system where there will be backend verification of customers’ facials with BVNs and NINs.

He emphasized that the collaboration involves relevant stakeholders, including regulators and KYC agencies, to collectively address the industry-wide challenge of fraud.

Industry-Wide Challenge: Vigilance Against Fraudsters

Acknowledging the persistent threat of fraudsters, Odiase highlighted the industry’s collective efforts to combat this challenge.

The coordinated approach involves stakeholders across the regulatory spectrum and KYC agencies in a concerted effort to curb fraudulent activities and enhance overall industry security.

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