The inspector general of police (IGP) filed a motion asking a federal high court in Abuja to require twelve banks and other financial institutions to return billions of naira that were purportedly taken fraudulently from a Flutterwave account. The request was dismissed.
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According to reports, between October 12 and October 13, 2023, a technical fault caused the withdrawals. The IGP’s legal team said in the motion ex parte, dated July 17, 2024, and designated FHC/ABJ/CS/1015/24, that about 244 suspects (defendants) took billions of dollars from Flutterwave’s account through illicit ways. According to the legal team, the money was moved to bank accounts belonging to people who are difficult to discover or cannot be located.
Citing the need to provide the banks with due process, the court denied the ex parte move, noting that the applicant had failed to file a notice motion to support the request. The judge questioned, “Should I order them [the banks] to reverse the funds, based on your one-sided account, without hearing their side of the story?” The fintech business reportedly suffered multiple security breach instances, losing money to the offenders.
Concerns were raised in March 2023 regarding an alleged unauthorised fund transfer from the fintech company. The business did clarify that there hasn’t been any account hacking. We like to inform you that there has been no hacking of Flutterwave.
As a financial institution, Flutterwave has stated, “We keep an eye on transactions using our 24-hour fraud desk and transaction monitoring systems, and we investigate any questionable activity.” According to the fintech, it collaborates with law enforcement and other financial institutions to guarantee the security and safety of its ecosystem.
The organisation reportedly lost N11 billion ($7 million) to many accounts in April 2024 as a result of security lapses.
