The incident occurred in the town of Mubi, where the group has proclaimed an Islamic caliphate.
According to residents quoted by the Nigerian newspaper "Punch", the terrorists amputated the hands of ten people who were accused of various crimes, including looting.
Hundreds of people have fled the area in fear of the insurgents, who preach Islam as a way to recruit jihadis for their cause.
The deputy governor of Borno state, Alhaji Zanna Mustapha has warned that the northern states of Adamawa, Borno and Yobe may be invaded by Boko Haram in the coming weeks unless the federal government increases its efforts to stop its advance.
More than 15 towns in the north are under the control of the group, which has killed thousands of people, mostly Christians, in its efforts to achieve the goal of establishing an Islamic state in Nigeria.
In a video released Saturday, the leader of Boko Haram, Abubakar Shekau, denied that the terrorist group had reached a ceasefire with the Nigerian government to free more than 200 girls abducted in April from a school in Chibok.
Shekau stressed that the issue of the abducted girls was over as they had gotten married and would not be returning to their families.
Boko Haram, which means "non-Islamic education is a sin", has killed more than 3,000 people so far this year.