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Nigerian Payment Company Loses N11 Billion to Security Breach, Funds Transferred to Many Accounts

Last Updated on May 16, 2024 by Silvy

Nigerian Payment Company Loses N11 Billion to Security Breach, Funds Transferred to Many Accounts

Flutterwave, a prominent financial technology company in Nigeria, has recently suffered a significant security breach, resulting in the loss of N11 billion.

The stolen funds were allegedly transferred to multiple bank accounts across five financial institutions over a period of four days in April 2024.According to reports, Flutterwave detected unauthorized activities on one of its platforms used by a small subset of its customer base.

The company did not disclose the exact amount lost due to the unauthorized access but assured that no customer funds were lost or compromised.The security breach is believed to have been carried out by hackers who evaded detection by keeping the deposits below thresholds that would trigger fraud checks.

This incident is particularly concerning given that it occurred just one month after Flutterwave obtained a court order to recover $24 million lost to unauthorized PoS transactions.The incident highlights the ongoing challenges faced by financial institutions in Nigeria in terms of cybersecurity.

It is crucial that these institutions invest in robust security measures to protect their systems and prevent such breaches from occurring in the future.In related news, Wema Bank has issued a warning regarding a new banking cyber threat targeting Android devices. The malware, known as “Brokewell,” is designed to steal sensitive information such as banking details and personal data.

It is spread through various means, including phishing emails and malicious websites, and once installed on a victim’s device, it can allow fraudsters to remotely access and control the device.The recent security breaches and cyber threats underscore the need for increased vigilance and cooperation between financial institutions, regulatory bodies, and law enforcement agencies to combat these threats effectively.

In other news, Flutterwave has announced that it will be temporarily shutting down its creator platform, Disha, effective March 31, 2024. The platform allows digital creators to curate, sell digital content, create portfolios, and receive payments from their audience globally.

The company cited the need to reevaluate its objectives and realign its vision to better serve the creative community.Overall, the recent security breach and cyber threats serve as a reminder of the importance of robust cybersecurity measures in the financial sector and the need for increased cooperation to combat these threats effectively.




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