Dormant accounts prime targets of fraudsters – Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has raised concerns about the vulnerability of dormant bank accounts to fraudulent activities.

Mr Cardoso made these remarks on Tuesday while addressing journalists at the conclusion of a two-day Monetary Policy Committee (MPC) meeting, where 50 basis points increased the benchmark interest rate to 26.75 per cent.

He explained that leaving accounts inactive for extended periods often makes them prime targets for identity theft and unauthorised access by fraudsters.

“With respect to dormant accounts, what I found personally is that if you leave accounts dormant in banks, they are sometimes more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money. So, that is a problem I think most banks face.

“The policy and the directive are meant to ensure that all those monies come to the Central Bank for safekeeping and it is at zero cost to the beneficiaries. All that will happen is that the Central Bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income has accrued,” Mr Cardoso said.

Last week, the CBN announced its intention to invest funds from dormant accounts, unclaimed balances, and other financial assets into Nigerian Treasury Bills (NTBs) and other government securities in its new “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria”.

According to these guidelines, the CBN will create an “Unclaimed Balances Trust Fund (UBTF) Pool Account” to manage unclaimed balances and establish a committee to oversee its operation. This committee will issue guidelines, monitor compliance, manage funds, and handle claims and complaints.

The guidelines specify that eligible accounts for transfer to the CBN include dormant account balances that have been inactive for ten years or more.

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These accounts include current, savings, and term deposits in local currency, domiciliary accounts, deposits for shares and mutual investments, prepaid card accounts and wallets, government-owned accounts, and proceeds from uncleared financial instruments.

The apex bank noted that others include unclaimed salaries, wages, commissions, bonuses, proceeds from stale drafts, and funds received from correspondent banks without clear beneficiary details.