Nigeria’s chief police officer, the Inspector General of Police (IGP), has failed to convince a Federal High Court in Abuja to order 12 banks to reverse billions of naira reportedly defrauded from a Flutterwave account with Wema Bank. It was allegedly caused by malfunctioning on the Flutterwave platform around October 12th and 13th, causing huge amounts being withdrawn.
In an ex parte motion filed in July 2024, the IGP lawyers alleged that 244 suspects moved billions out of the Flutterwave account via wire transfers into various banks where it is impossible to retrieve it. The IGP’s counsel, Victor Okoye, asked for an order for refund without allowing respondents and including the banks time to provide their defense.
Justice Peter Lifu rejected the motion, emphasizing the constitutional right to a fair hearing. “Should I order them [the banks] to reverse the funds without hearing their side of the story, based on your one-sided account?” the judge questioned. He further noted that no formal notice had been served to the banks, which would have allowed them to respond.
Flutterwave, one of Africa’s largest fintech firms, had earlier faced reports of a security breach leading to a N11 billion loss. But Flutterwave confirmed the problem and said it was discovered in April 2023 and that it had blocked the intrusion attempt. However, court documents show that police sought to recover the stolen funds. It found that Flutterwave’s POS terminals were involved in these fraudulent transactions during an October system glitch.
Flutterwave’s exposure was estimated at N21.2 billion, although the fintech giant worked with banks to restrict affected accounts, preserving N7.2 billion. On his part, IGP noted some suspects were arrested while further recovery efforts are being made.
This incident highlights broader concerns about cybersecurity in Nigeria, with Flutterwave joining a growing list of firms targeted by cyber criminals. Just in the last quarter of 2023 alone (Q4 2023), Nigerian Banks lost N2.09 billion to fraud as shown by a report from Financial Institutions Training Centre (FITC) with mobile channels serving as main avenues for such crimes.
