Global Bank Limited, one of the new entrants in the Nigerian banking sector, led by Peter Amangbo as Chairman and Elias igbinakenzua as its CEO, he’s in the news for the wrong reason, THE WITNESS reports.
The bank has filed an application with a Lagos High Court seeking an order to recover a total sum of N962,019,843.35 fraudulently transferred electronically from its vault to domiciled accounts at eight commercial banks.
The N962m are part of the total N1,755,376,156.34 transferred from the bank between Monday June 6 and Saturday June 11, 2022. The bank has already recovered the sum of N817,998,969.85 from the scammers’ accounts.
However, the development has raised concerns as financial analysts say the bank’s security system may be weak, deficient or not up to industry standards.
In an affidavit from legal officer Kosisochukwu Ngene, Globus bank said the scammers exploited a system flaw in their USSD application between Monday, June 6, and Saturday, June 11, 2022, to process several fraudulent and unauthorized wire transfers by a total of N1,755,376,156.34 (One trillion, seven hundred fifty-five million three hundred seventy-six thousand one hundred fifty-six Naira thirty-four kobo.
The bank said that 709 people who were its clients were involved in the fraudulent transfer of the funds to accounts domiciled in eight commercial banks.
It added that it immediately discovered the flaw, instantly notified all banks involved and requested that the beneficiary accounts be restricted.
This, Globus Bank said, was in line with the Central Bank of Nigeria’s regulation to prevent the dissipation of funds fraudulently transferred to bank domiciled accounts.
“Subsequently, Globus Bank immediately approached the Magisterial District Court of Yaba and obtained an order ordering the banks to freeze and reverse the amount fraudulently transferred to various bank domiciled accounts.
“That in response to the order served on the defendants, some of the defendants were able to salvage a certain sum in which the total sum of N817,998,969.85 was returned to the bank while the total sum of N962,019,843.35 is still outstanding and has not yet returned to the bank by the defendant banks.
The excel sheet containing the names of the defendants, the total amount fraudulently transferred from the Globus bank, the total amount saved and returned to the Globus and the total amount pending analysis was also filed with the court.
Globus Bank said it still requires the high court order to allow the other banks to revert and remit the rescued funds to it.
He added that the other banks have requested an order from the high court, allowing them to reverse and remit the rescued funds.
Accordingly, Globus Bank Limited is seeking the following relief from the court.
“An order of the Court ordering the eight banks to immediately reverse and remit to Globus bank Limited the total sum of N962,019,843.35 (nine hundred and sixty-two million, nineteen thousand, eight hundred and forty-three naira, thirty-five kobo ), being the pending sum still to be redeemed from the fraudulent transfer to various accounts domiciled with the eight Defendants from the accounts of the clients of the Globus 709 bank, minus the exhausted sum.
“An order directing the eight commercial banks to disclose all account information regarding destination accounts and recipients of transfer funds
“And for such additional order(s) as the court deems appropriate in the circumstances of this case.”
