Development of an Online Bank Verification Number System Using Linear Congruential Algorithm

INTRODUCTION

Bank Verification Number (BVN) is a new initiative introduced by the Central Bank of Nigeria (CBN) to check the prevailing money laundering and incidence of fraud in the financial institutions in Nigeria^1,2. Initially, Personal Identification Number (PIN) and passwords technology were introduced in Nigeria to check financial fraud in the banking sector, but due to incessant compromise of the traditional methods in the recent times, some researchers warned that there is a need for higher level of security in the banking sector^3-7. In another study, it was stated that the BVN became imperative following the increasing incidence of compromise on conventional security systems⁷. This called for the introduction of the BVN by the central bank of Nigeria. Previous research has reported that the current BVN is generated inside the banking hall making the whole process to be stressful and cumbersome^8-10. This study introduces the online generation of the BVN using a linear congruential algorithm which is better than the former method. The BVN was introduced by the CBN in 2014 to curtail the crime in the banking sector in Nigeria. It involves identifying an individual based on physiological or behavioral attributes, such as fingerprint, signatures and others. The customers unique BVN is accepted as a means of identification across all banks systems. The BVN which is a compulsory exercise provides account holders with a unique number that enables the account holder to have a single identity in the same banking system. It aimed at protecting bank customers from identity theft and other financial/economic crimes emanating in the banking sector of Nigeria.

Previous studies have shown that BVN uses biometric technology to register customers in the banking sector^11-13. The already existing BVN software doesn’t generate the 10 digit BVN immediately it goes through a number of sources for allocation of BVN to a customer¹⁴. Also, researchers have reported that because of the crime rate in the banking sector there are not much people that can access this application or update information on this platform so there is a long procedure in updating information on this platform and creating this BVN¹⁵.

The study will aid in reducing queues at banking halls and reducing identity theft if successfully implemented. Bank managers and other stakeholder in the banking industry of Nigeria can use this web application to restore confidence in the banking sector as more clients will be assured that their funds are safe and the stress of queuing at banks will be totally eliminated.

Previous studies revealed that the BVN is a plan presented by the CBN to secure client’s exchanges and upgrade trust in keeping money^16,17. It includes catching client’s unique mark, among others, at their banks.

The CBN through the Banker’s Committee in Nigeria on February 14, 2014 propelled a biometric distinguishing proof framework for managing an account industry labeled BVN which gives the accompanying advantages to clients¹⁸:

The NUBAN has extraordinary possibilities to determine the watched issues with electronic installments in Nigeria, the same number of them are identified with determination of wrong recipient account numbers. All deposit made to the banks are encouraged to receive this uniform calculation to acquire the check digit part of NUBAN codes of their client account numbers.

A great deal of inquiry has been raised about the pith of Bank Verification Number (BVN) when there is NUBAN as of now. Does this infer NUBAN is no more viable? Prior to answering the above inquiry, it is critical to comprehend the two ideas.

The BVN is a biometrics recognizable proof of clients in the money related industry dispatched by the CBN in February 2014, which is gone for changing the installment framework in the nation. The presentation of BVN verification is focused at tending to digital wrongdoing, ATM misrepresentation and different sorts of monetary cheats and also to defend clients’ assets to stay away from misfortunes through trade off of PIN.

The BVN is a number that empowers one individual to have a solitary character inside of the monetary framework. "The author concocted this to accomplish a couple of things; individuals who can’t read and keep in touch with utilize their biometrics which can’t be imitated, to handle occurrence of wholesale fraud and empower banks to truly distinguish their clients in the general setting of Know Your Customer (KYC) activity,"

The NUBAN is a 10-digit financial balance numbering framework that is more straightforward to use than customary longer record numbering structures and is in accordance with necessities of the West Africa Monetary Institute, towards the financial mix of economic community of west African states (ECOWAS) nations.

The BVN distinguishes you over the keeping money industry, while NUBAN recognizes you in your bank, saying "NUBAN will be NUBAN and BVN will be BVN". Banks check number distinguishes you over the business. NUBAN distinguishes you in your bank.

The utilization of Personal Computer (PC) is still new in our general public¹⁹. The development of PC innovation goes back to late 1940s in the propelled nations of America and Europe. It was brought into Nigeria in the 1970’s by the multinational organizations such as united African company (UAC), National Cash Register (NCR) and so forth while the banks grasped it in the mid 80’s.

In the 1980’s, the handling of data in Nigeria depend on the design of a centralized server PC running a multi-client working framework and different clients associated with it by means of terminals. This sort of preparing later changed to a more decentralized methodology with neighborhood Local Area Network (LAN) inside of bank offices. As of late, the utilization of cutting edge innovation has influenced all parts of the country’s saving money industry from the standard retail working, for example, money withdrawal and check handling to the creation and conveyance of advanced item, for example, remote trade swaps.

The electronic transformation in Nigeria’s keeping money division began in the mid 1990s. Nonetheless, the main obvious type of electronic advancement in the country’s managing an account industry was the presentation of ATMs in the mid 1980 by a business bank in the nation. Some different banks took after the bank’s encounters however the item was not generally welcomed by the managing account group and this doubtlessly abridged its spread in the mid 80s.

Data flows in banking represent assets or instructions which ultimately move asset. Successful frauds, will not only result in a direct financial loss for the institution but when reported in the media will detract from confidence in the institution and in the banking system in general. However, going through the corridor of history you will find out that some smart herds have been fraudulently manipulating the use of computer in banks all over the world.

The biggest bank fraud came in Los Angeles on November 3, 1978. Someone tapped the bank system, transferring funds to other bank to the tune of 10 million dollars¹⁹. This as the Federal Bureau of Information (FBI)put it Rifkin parlayed his sophisticated knowledge of electronic and computer into one of the biggest ban theft in the history.

The objective of this study was to develop an online bank verification system and use an algorithm to generate the 10 digit BVN unique numbers to different account holders, with an application in place. It will further enable the BVN platform to update customer information within seconds rather than weeks. The BVN system would be implemented with a system and also an algorithm whereby both generating the unique numbers randomly.