Categories: Technology

Examining the rise of fraud in Nigeria’s rapidly growing fintech industry

The Federal High Court in Abuja has extended a freezing order on 818 bank accounts tied to a ₦10 billion cyberattack targeting Hope Payment Service Bank (Hope PSBank).

Justice James Omotosho granted the 30-day extension on October 14, 2024, following a request by the Inspector-General of Police (IGP) to allow further investigation into the accounts suspected of receiving proceeds from the attack.

The initial freeze was ordered on September 24, 2024, for 14 days. However, the extension allows more time for investigation and possible prosecution of those involved. The accounts, belonging to Shirsha Paul Terver and 817 others, are under investigation for allegedly receiving funds diverted from the cyberattack.

Hope PSBank suffered a significant breach in July 2024, with fraudulent transfers initially reported at ₦6.5 billion, though the current lawsuit indicates the figure is as high as ₦10 billion. The stolen funds were distributed across multiple bank accounts, prompting a legal effort by the bank to recover the money.

In addition to this case, Hope PSBank has filed a separate lawsuit in Lagos High Court against 30 banks, aiming to freeze further accounts involved and reclaim the stolen funds. This cyberattack is part of a wider trend of increasing fraud in Nigeria’s fintech sector, with ₦42.6 billion lost in the second quarter of 2024 alone.

Steve Mokaya

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