A Federal High Court in Abuja has granted a 30-day freezing order on 818 bank accounts linked to a ₦10 billion cyberattack on Hope Payment Service Bank (Hope PSB). Justice James Omotosho approved the extension on October 14, 2024. This is after the Inspector-General of Police (IGP) requested more time for investigations into the accounts suspected of receiving funds from the crime.
Initially, the IGP secured a 14-day freezing order on September 24, 2024, but this has now been extended to allow further investigations and possible prosecution. The motion, marked FHC/ABJ/CS/1358/2024, was filed against Shirsha Paul Terver and 817 others, including various banks. The IGP’s counsel argued that the accounts were involved in receiving proceeds from the attack.
Details on the cyber attack
According to the affidavit submitted by the Nigeria Police Force, Hope PSB lost ₦10 billion due to the cyberattack. The stolen funds were transferred to multiple accounts belonging to the defendants in an attempt to launder the money
Reports suggest the breach occurred in July 2024, resulting in fraudulent transfers of ₦6.5 billion initially. The total loss is now reported to be ₦10 billion. In response, Hope PSB shut down its banking systems to prevent further losses and alerted the police on July 18, 2024.
Funds were transferred to hundreds of accounts across various banks and neobanks. Some of these banks have begun recovering portions of the stolen money, though the exact amounts remain undisclosed.
Hope PSB has also filed a separate suit in the Lagos High Court, targeting 30 banks to freeze the accounts involved and recover the stolen funds. This incident highlights the ongoing risks in Nigeria’s banking sector, which saw fintechs lose ₦42.6 billion to fraud in Q2 2024, up from ₦468.49 million in the first quarter. Despite efforts to strengthen cybersecurity, the sector remains vulnerable to attacks.
