MTN subsidiary in Nigeria, Momo Payment Service Bank Limited has lost about 22.3 billion naira after a security breach on the service’s system, which made the company halt its operations temporarily.
The incident happened this year, on May 24, after Momo Service Banks processed 700 thousand transactions, sending its proceeds into an estimated 8,000 third-party accounts domiciled in 18 banks. Efforts to get back the money have now resulted in the fintech company filing a suit six days after, with the affiliated banking institutions as defendants.
The suit has been marked FHC/L/CS/960/2022 and it has been gathered that the 22.3 billion naira was transferred to Zenith Bank, Guaranty Trust Bank -GTB, First Bank, Access Bank, Union Bank, Wema Bank, Sterling Bank, and Polaris Bank. Additionally, Ecobank, Stanbic IBTC, Providus Bank, Unity Bank, United Bank for Africa -UBA, Fidelity Bank, Standard Chartered, First City Monument Bank, Suntrust Bank, and Heritage Bank were also listed in the suit.
Momo Payment Service Bank asked for a reversal of the money from the accounts, and the information of the customers, in the eventuality that some of the funds had been sent to another bank. However, the commercial financial institutions had asked for a court order ordering them to give details requested by MTN fintech subsidiary, hence, the lawsuit.
