Stanbic IBTC Bank Loses N576.6 Million to Cybercriminals in Massive Internal Security Breach

Stanbic IBTC Bank Loses N576.6 Million to Cybercriminals in Massive Internal Security Breach – Court Freezes 37 Bank Accounts

In a shocking development, Stanbic IBTC Bank has reportedly lost over ₦576.6 million to cybercriminals due to what appears to be a massive internal security breach. This was disclosed in a court filing brought before the High Court of Lagos State by the Inspector General of Police, who is seeking to recover the stolen funds and prosecute the culprits.

The court has granted an ex-parte order to freeze multiple accounts across 37 Nigerian financial institutions suspected to be beneficiaries of the fraudulent transactions.

Police and Court Action: 90-Day Freeze, Arrest Warrant Issued

A Superintendent of Police, Sunday Ubanni from the Police Special Fraud Unit (PSFU), filed an affidavit in support of the application to freeze the accounts. The order was granted by Justice Alexander Oluseyi Owoeye, who directed banks to:

• Place a lien/post-no-debit on the affected accounts.

• Hand over all personally identifiable information of the account holders.

• Arrest suspects linked to the accounts upon identification.

• Reverse or transfer whatever amount remains back to Stanbic IBTC’s Special Reserved Account (9200026167).

The ruling also allows police authorities to detain suspects for 90 days, pending the conclusion of the ongoing investigation.

Breakdown of the Court Orders

The ex-parte order issued includes the following key directives:

1. Post-No-Debit on Accounts:
   All 37 banks must immediately restrict access to the flagged accounts.

2. Provision of KYC Documents:
   Banks are to release certified true copies of:

   • Account opening forms

   • BVNs

   • Mandate cards

   • Phone numbers receiving alerts

   • Statements from January 1, 2023, to date

3. Arrest and Detention:
   Any operator or representative of these accounts is to be arrested and handed over to police.

4. Reversal of Funds:
   A total of ₦576,664,517.50 (or any balance left) is to be traced and reversed to Stanbic IBTC’s Special Reserved Account.

The order was signed by court registrar Alokpesi C.N. and the case has been adjourned until May 28, 2025, for an update on the police investigation.

Suspected Fraud Trail: Cryptocurrency Trader Involved

One of the individuals caught in the crosshairs is Ogundele Taofeek, a cryptocurrency trader who reportedly received ₦14.1 million in transactions from accounts now flagged as suspicious.

Transaction Details:

• Taofeek received ₦9.5 million via his Kuda Bank account from a Zenith Bank user.

• He also got ₦4.6 million in his OPay wallet from a Parallex Bank user.

• The sender in both cases was identified as Barnabas Nnabuike Ngwu, now under investigation.

Taofeek told FIJ:

“I had no knowledge of the funds being fraudulent. It was a legitimate crypto trade, and everything seemed fine until I was notified that a lien had been placed on my accounts.”

Both Kuda Bank and OPay have since frozen the accounts, pending the investigation’s outcome.

Ongoing Investigation and Public Warning

The Police Special Fraud Unit (PSFU) is actively tracing digital footprints, reviewing statements of account, and contacting individuals linked to the fraud. According to the PSFU spokesperson, Ovie Kenneth, further details will be released as investigations progress.

Nigerians are advised to exercise caution when receiving large sums of money, especially from unfamiliar or unverified sources. Cryptocurrency traders and fintech users are particularly urged to verify fund origins to avoid entanglements in criminal investigations.

Conclusion

The Stanbic IBTC fraud saga highlights glaring loopholes in interbank security and digital transaction verification. With over ₦576 million siphoned and laundered through dozens of Nigerian bank accounts, this may become one of the largest cyber frauds targeting a commercial bank in recent years.

As the case returns to court in late May, the financial industry and general public alike await updates that could lead to new reforms in fintech regulation and cybersecurity.