Hope Payment Service Bank Limited has lost N6.56 billion to cybercriminals and has filed an application before the Federal High Court in Lagos to recover the stolen funds before they are fully dissipated.
In its legal action, Hope Payment Service Bank has named 30 banks as defendants.
The application, supported by a 17-paragraph affidavit sworn by Abiodun Fade, bank’s chief finance officer, Hope Payment Service Bank Limited, was argued in court by Ukon Uye, Lagos lawyer alongside I.E. Awolola.
According to the affidavit, on Sunday, July 15, 2024, the bank’s platform experienced unauthorized access, leading to the fraudulent transfer of significant sums from customer accounts to unknown beneficiaries.
Fade stated that the fraudulent transfers were made from various customer accounts at Hope Payment Service Bank into the accounts of the beneficiaries.
Upon discovering the breach, the bank immediately approached the defendant banks, requesting that the funds be clawed back.
However, the banks have allegedly refused to act without a court order.
In his affidavit, Fade emphasized the urgency of freezing the accounts of the beneficiaries to prevent further dissipation of the funds.
He warned that unless the court intervened swiftly, the bank risked losing millions belonging to its depositors, investors, and shareholders.
Fade also noted that the perpetrators of the fraud, upon learning of the bank’s recovery efforts, have already begun to deplete the transferred funds.
He explained that the fraudsters have employed various tactics to move and conceal the money, posing a high risk to the bank’s ability to recover the stolen sum.
“If this application is not granted, the funds illegally transferred will likely be dissipated by the beneficiaries, and the bank will face significant financial exposure,” Fade said.
He added that the bank’s financial standing has already been severely affected by the breach and that the court’s immediate intervention is critical to preventing further losses.
The bank assured the court of its willingness to provide an undertaking as to damages, should the defendants or account holders suffer any loss due to the court’s orders.
After hearing the submission of the plaintiff’s counsel, the court granted an interim injunction.
The order directed the defendant banks, their agents, and representatives to place a restriction on the accounts linked to the fraud, freezing any amounts transferred from Hope Payment Service Bank until the hearing and determination of the motion for interlocutory injunction.
The court further instructed that the plaintiff must file an undertaking as to damages, indemnifying the defendants and the account holders in the event that the injunction should not have been granted.
