Hope PS Bank Allegedly Loses N6.5 Billion Tp Cyber Heist
Hope Payment Service Bank Limited has fallen prey to a new wave of fraudulent operations targeting financial institutions in Nigeria, losing N6.56 billion to cybercriminals.
To retrieve the pilfered money before it is completely spent, the bank has applied to the Federal High Court in Lagos. Hope Payment Service Bank has named thirty institutions as defendants in its lawsuit. I.E.
Awolola and Lagos attorney Ukon Uye defended the case in court, backed by a 17-paragraph affidavit sworn by the bank’s Chief Finance Officer, Abiodun Fade.
The document states that on Sunday, July 15, 2024, there was an illegal access to the bank’s platform, which resulted in the fraudulent transfer of large amounts of money from customer accounts to unidentified beneficiaries.
According to Fade, the illicit transfers came from different Hope Payment Service Bank customer accounts into the beneficiaries’ accounts.
The bank contacted the defendant banks right away after learning of the breach and demanded that the money be refunded. But without a court order, the banks are said to have refused to take any action.
Fade stressed in his affidavit how important it is to freeze the beneficiaries’ accounts right away in order to stop the money from being spent further.
He threatened to forfeit millions that belonged to the bank’s shareholders, investors, and depositors if the court did not step in quickly.
Fade said that the fraudsters had already started to exhaust the transferred monies after discovering the bank’s recovery initiatives.
He clarified that there is a significant danger to the bank’s ability to retrieve the stolen amount because the fraudsters have used a variety of strategies to relocate and hide the money.
“The bank will face significant financial exposure if this application is denied, and the beneficiaries will probably disburse the illegally transferred funds,” Fade stated.
In the event that the defendants or account holders incur any losses as a result of the court’s orders, the bank guaranteed the court that it would be willing to provide an undertaking about damages.
Following the plaintiff’s attorney’s submission, the court issued an interim injunction. The ruling ordered the defendant banks, as well as their agents and representatives, to impose restrictions on the fraudulently linked accounts.
Specifically, the court instructed them to freeze any funds moved from Hope Payment Service Bank until the motion for an interlocutory injunction is heard and decided.
In addition, the court directed the plaintiff to submit an undertaking promising to reimburse the defendants and the account holders for any losses in the case that the injunction was improperly granted.
References and Citation
pmnewsnigeria.com – Cyber heist hits Hope PS Bank: N6.5 billion stolen, 30 banks named in suit
aclclope.cloudware.ng – Cyber heist hits Hope PS Bank: N6.5 billion stolen, 30 banks named in suit
nigeriacommunicationweek.com.ng – Breaking…. Fraudsters Steal N6.Bn from Hope PS Bank
itedgenews.africa – Hope PSB in court to recover N6.56b amid rising cyberattacks in Nigeria’s financial sector
