• Latest
  • Trending
OPay's inadequate KYC system is under investigation

OPay’s inadequate KYC system is under investigation

December 18, 2023
Edtech startup The Invigilator raises $11 million to scale its AI platform

Edtech startup The Invigilator raises $11 million to scale its AI platform

September 6, 2025
iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

iXAfrica receives RMB financing to fast-track 20 MW expansion in Nairobi

September 6, 2025
OpenAI challenges LinkedIn with new AI-powered hiring platform

OpenAI challenges LinkedIn with new AI-powered hiring platform

September 6, 2025
Tanzanian fintech NALA takes its services to Kenya

Tanzanian fintech NALA takes its services to Kenya

September 6, 2025
Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

Call of Duty movie: Paramount, Activision strike deal for live-action adaptation

September 5, 2025
Meta Brings Back Facebook Poke with Emojis and Streaks

Meta Brings Back Facebook Poke with Emojis and Streaks

September 5, 2025
Know why they’re calling: Truecaller launches AI-powered insights

Know why they’re calling: Truecaller launches AI-powered insights

September 5, 2025
Visa harnesses local partnerships to launch Visa Pay in DR Congo

Visa harnesses local partnerships to launch Visa Pay in DR Congo

September 5, 2025
Betika denies recent reports of security breach

Betika denies recent reports of security breach

September 5, 2025
10 things you can actually buy with crypto in Africa

10 things you can actually buy with crypto in Africa

September 5, 2025
Your one-stop tech hub! Get the latest updates on AI, cybersecurity, fintech, and emerging technologies.
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • General News
    • How To
    • Reviews
  • Cryptocurrency
  • Fintech
  • Startups
  • Ai
No Result
View All Result
Techpression
No Result
View All Result
Home Tech News Africa Tech News

OPay’s inadequate KYC system is under investigation

Felicia Akindurodoye by Felicia Akindurodoye
December 18, 2023
149 1
0
OPay's inadequate KYC system is under investigation
465
SHARES
Share on FacebookShare on TwitterWhatsAppTelegram

Studies have shown that OPay, a Nigerian financial technology business, has continued to implement sloppy registration procedures that leave its digital platform open to fraudulent activity despite growing worries about fraud.

OPay, which debuted in 2018, has grown to become one of Nigeria’s largest mobile money providers.

The company has launched a sophisticated marketing campaign to attract new users, especially those without bank accounts. The business partnered with other fintechs and commercial banks to streamline the registration process for new users in an effort to attract unbanked clients. This included reducing stringent identification verification criteria for the most basic bank account type, which has the fewest functionality.

But as worries about financial fraud in the nation have grown, these loose regulations have come under fire in recent months. TechCabal’s investigations now reveal that OPay keeps enabling new users to register on its site without conducting the necessary verification.

RelatedPosts

Why fintechs like OPay and Moniepoint outpace traditional banks—and lessons from blockchain

OPay’s N1.2 billion scholarship to support students at UNICAL, UI, and 18 other schools

OPay wins 2024 Fintech Company of the Year

New users of the Chinese-owned fintech app can use a phone number, a National Identification Number (NIN), a bank account number, or a bank verification number (BVN) to confirm their identification after providing basic personal information. In order to verify their identity, users must submit real-time facial verification. After submitting a BVN or NIN, users of OPay’s tiered verification process, which runs from tier 1 to 4, can access a greater range of services.

Read also: OPay, Kuda among top fintech firms in 2023

Studies on Opay

Nevertheless, a number of studies reveal that OPay’s tier 1 basic account verification procedure is deficient, and the facial identity system is vulnerable, which can enable malicious users to sign up for the service and start making transactions in under 60 seconds. In one test, OPay lets users register for the service with just their name and birthday—basic personal data—about a celebrity. Although OPay requests that users provide a phone number or bank account for validation, the app did not check the information.

The OPay app just required a picture to accept the user, despite the company’s assertions that face recognition is necessary to finish the registration process—possibly to connect the record to the bank account. While a woman created the freshly established account, the facial recognition was finished by a guy. Even days after the account was created, OPay’s technology could not detect this abnormality.

Nigeria FCCPC investigates OPAY

Data Obtained 

The inspections highlight the shortcomings of OPay’s account management procedures, which can provide a sanctuary for dishonest people trying to pose as innocent victims and scam them.

“Face verification is not solving for anything if it does not match the BVN details,” remarked a KYC specialist who wished to remain anonymous in order to express themselves freely. The expert recommended that the Fintech obtain a user’s BVN prior to facial verification.

Users can conduct transactions of up to N50,000 and deposit up to N300,000 into their mobile money wallets under OPay’s tier 1 basic account type. Even while these transaction restrictions are limited, the simplicity with which dozens of fake OPay accounts can be created raises questions about the company’s security procedures.

The Central Bank of Nigeria (CBN) issued a warning against such a flimsy verification procedure during the first week of December. All financial services were ordered by the banking authority to enforce more stringent know-your-customer (KYC) procedures and to deactivate any bank accounts or mobile money wallets that haven’t been validated with a BVN or NIN. It is anticipated that financial services will conform before the April 2024 deadline.

Tags: KYC systemOpay
Felicia Akindurodoye

Felicia Akindurodoye

Felicia Akindurodoye is an experienced writer and researcher, whose watchword is originality.

No Result
View All Result

Quick Links

  • Tech News
  • Cryptocurrency
  • Fintech
  • Startups
  • Business

Follow Us:

  • facebook
  • instagram
  • Twitter(X)
  • Linkedin
  • YouTube
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2025 Techpression.com -Techpression Media Limited

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

No Result
View All Result
  • Home
  • Tech News
    • Africa Tech
    • Global Tech
    • Tech with Pelumy
    • Tech Careers
    • Reviews
    • How To
    • General News
  • Cryptocurrency
  • Business
  • Fintech
  • Startups
  • Featured
  • Ai
  • Tech TV

© 2025 Techpression.com -Techpression Media Limited

techpression.com
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.