Alpha Morgan Bank Limited, one of the newest entrants into the Nigerian financial industry, is currently battling to recover about N230.9 million allegedly withdrawn from the accounts of two of its customers without authorization following a system glitch.
The sum, totalling N230,978,536, was reportedly transferred fraudulently from the accounts of NEM Insurance Plc and Extension Publications Limited into multiple accounts across 19 financial institutions.
In a bid to recover the funds, Alpha Morgan Bank, alongside the affected customers, has dragged the 19 financial institutions before the Federal High Court in Lagos.
According to an affidavit deposed to by Mr. Dayo Abe, a litigation officer at Alpha Morgan Bank and filed by Lagos-based lawyer Barrister Babafemi Akinsete, several digital financial services agents took advantage of the system glitch in the bank’s operations.
Abe explained that the agents, who operate as service merchants and maintain accounts with some of the financial institutions now listed as defendants, exploited the glitch to unlawfully initiate multiple transfers from the accounts of NEM Insurance Plc and Extension Publications Limited.
Further investigations revealed that N230,978,536 was illegally moved from the customers’ accounts domiciled with Alpha Morgan Bank into various accounts belonging to individuals across the 19 financial institutions.
Following the bank’s complaint, the affected financial institutions placed temporary “no-debit” restrictions on the implicated accounts.
However, according to the affidavit, the perpetrators continued to transfer the illicit funds into other accounts linked to their Bank Verification Numbers (BVNs), raising concerns that the funds could be completely dissipated unless all accounts connected to the suspected fraudsters were immediately frozen.
The plaintiffs warned that failure to block all accounts associated with the perpetrators would result in continued illegal withdrawals, thereby exposing investors’ and shareholders’ funds to further risk.
They argued that the system glitch and the resulting fraud have caused severe financial hardship and that urgent court intervention is necessary to prevent additional losses.
Consequently, the plaintiffs are asking the court for an order directing the 19 financial institutions to reverse and remit to Alpha Morgan Bank all funds illegally debited from the customers’ settlement and collection accounts and transferred into the accounts of the defendants’ customers.
Alpha Morgan Bank commenced operations in 2024 as a commercial bank, with its headquarters located at 44 Ademola Adetokunbo Crescent, Wuse II, Abuja.