Hope PSB has initiated legal proceedings to recover ₦6.5 billion fraudulently obtained from its banking platform through a cyber attack.
Hope PSB has recently fallen victim to a significant cyberattack, resulting in financial losses estimated to be around ₦6.5 billion. In response to this incident, the bank is actively pursuing legal avenues to recover the stolen funds and ensure accountability for the perpetrators of this malicious act.
The incident occurred on July 15, 2024, resulting in
unauthorized access and subsequent fraudulent transfers to numerous beneficiary
accounts. Affected funds were dispersed across several commercial banks and
neobanks. While some banks have commenced recovery efforts, specific details
remain confidential. Hope PSB refrains from commenting on the matter at this
time.
While Hope PSB reported the matter to the police on July 18,
it did not disclose the mechanism of the fraud.
Nevertheless, an individual with firsthand knowledge of the
situation disclosed that the fintech entity fell victim to a cyberattack,
albeit without divulging specific details. In response to this cyberattack, the
company took the prudent step of deactivating its banking infrastructure.
“It is preferable to experience a period of downtime rather
than incur financial losses,” the individual stated.
“This is the first instance of an attack in the past five
years, as we have implemented a robust risk management and compliance
framework. Customer deposits remain secure, and there was no risk transference,”
a company insider disclosed.
As digital payments experience exponential growth in
Nigeria, nefarious individuals target banking institutions and fintech
companies. Despite the substantial investments made by these entities in
security measures, the perpetrators of these fraudulent activities exhibit
increasing levels of sophistication.
According to data obtained from the NIBSS fraud industry
report, financial institutions incurred significant losses amounting to ₦3.007
billion during the first quarter of 2024. These losses were the result of
20,638 reported incidents of fraud.