The news:
- The Federal High Court in Abuja has granted a 30-day freezing order on 818 bank accounts implicated in a ₦10 billion cyberattack on Hope Payment Service Bank (Hope PSBank).
- Justice James Omotosho approved the extension on Monday, October 14, 2024, following a request by the Inspector-General of Police (IGP) to continue investigations into the accounts suspected of receiving proceeds from the crime.
- Initially, the IGP secured a court order on September 24, 2024, freezing the 818 accounts for 14 days. However, this period has now been extended for further investigations and potential prosecution.
In the motion marked FHC/ABJ/CS/1358/2024, filed against Shirsha Paul Terver and 817 others, including several banks, the IGP's counsel argued that the accounts allegedly involved in receiving the proceeds of crime are under investigation, which justifies the need to freeze them.
“That as a result of the fraudulent activities and cyber-attacks on the banking platform of the nominal complainant, they lost the sum of N10,000,000,000.00 (Ten Billion Naira), which has now been transferred/diverted to various accounts of the 1st to 818th defendants/respondents in an attempt to flitter away with the proceeds of crime,” part of the affidavit deposed by the Nigeria Police Force, Force Headquarters Abuja, read.
Initial reports indicated that in July 2024, Hope PSBank experienced a significant breach, resulting in fraudulent transfers totalling ₦6.5 billion, though the suit reveals that the amount is up to ₦10 billion.
The cyberattack prompted the bank to shut down its banking infrastructure to prevent further losses before reporting the incident to the Police on July 18, 2024.
Initially, the funds were transferred to hundreds of accounts across various banks and neobanks. Some banks have since begun recovering part of the stolen sum, though exact figures have not been disclosed.
The petition to the IGP from Hope PSBank’s management detailed allegations of conspiracy, criminal diversion, and fund laundering by the defendants.
The police have traced portions of the stolen money to the defendants' accounts, with a combined estimated value of ₦10 billion.
Hope PSBank has taken additional legal steps, filing a separate suit in the Lagos High Court against 30 banks involved in the case. This move aims to freeze the accounts and recover the stolen funds. Nigerian fintechs lost ₦42.6 billion to fraud in the second quarter of 2024, up from ₦468.49 million record in the first quarter. This latest attack on Hope PSBank underscores the ongoing risks faced by the banking sector despite efforts to enhance cybersecurity measures.