Globus Bank Limited, a recent addition to Nigeria’s banking industry, has taken legal action by filing an application with a Lagos high court. The application seeks an order for the recovery of N962,019,843.35, which was fraudulently transferred electronically from the bank’s vault to accounts held in eight different commercial banks.

The N962m is part of the total N1,755,376,156.34 transferred from the bank between Monday 6th and Saturday 11th of June 2022. The bank has already recovered the sum of N817,998,969.85 from the accounts of the fraudsters.

The development has however raised concerns as financial analysts say that the bank’s security system may be either weak, poor or not up to industry standard.

In an affidavit sworn to by the legal officer, Kosisochukwu Ngene, Globus Bank said fraudsters took advantage of a system glitch in its USSD application between Monday 6th and Saturday 11th of June 2022 to process several fraudulent and unauthorized electronic transfers totaling N1,755,376,156.34 (One Billion, Seven Hundred and Fifty-Five Million, Three Hundred and Seventy-Six Thousand, One Hundred Fifty-Six Naira thirty four kobo.

The bank said 709 people who were its customers were involved in the fraudulent transfer of the funds to accounts domiciled in eight commercial banks.

It added that immediately it discovered the glitch, it instantaneously notified all the banks involved and requested that the beneficiary accounts be restricted.

This, Globus Bank said was in line with Central Bank of Nigeria regulation to avoid dissipation of the funds fraudulently transferred into the accounts domiciled with the banks.

“Subsequently, Globus Bank immediately approached the Magistrate Court, in the Yaba Magisterial District and obtained an order directing the banks to freeze and reverse the amount fraudulently transferred into various accounts domiciled in the banks.

“That in response to the order served on the respondents some of the respondents were able to salvage certain sum wherein the total sum of N817,998,969.85 were returned to the bank while the total sum of N962,019,843.35 is still outstanding and yet to be returned to the bank by the respondents banks.

Globus Bank said it still requires the order of the high court to enable the other banks to reverse and remit the salvaged funds to it.

“An Order of the Court directing all 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 outstanding sum yet to be salvaged from the fraudulent transfer into several accounts domiciled with the eight Respondents from the Globus bank 709 customers’ accounts, less depleted sum.

“An order directing the eight commercial banks to release all account information in respect of the destination accounts and the beneficiaries of the transfer funds And for such further order(s) as the court may deem fit to make in the circumstances of this case.”

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