FINTECH AFRICA | Cybercriminals Reportedly Transferred Over $13 Million to Several Accounts in Flutterwave Incident – BitKE

May 17, 2024

24 1 minute read

Payment company, Flutterwave, assured that its customers’ funds are secure despite worries about a potential security breach in its system.

In a statement to newsrooms on May 16 2024, the company said that it successfully thwarted an ‘attempted network intrusion’ and has reported the perpetrators to the appropriate security agencies.

According to one local report, the perpetrators illegally transferred ₦11 billion ($7 million) to several accounts in April 2024, while a second source claimed the amount involved was at least ₦20 billion ($13.5 million).

Flutterwave confirmed that the incident occurred in April 2024 when it noticed unusual activities on one of its platforms used by a small number of customers for specific business transactions. The company promptly informed law enforcement agencies and provided them with the IP address and details of the offenders.

The company stated that its security measures intercepted the breach before any customer funds were affected. Flutterwave emphasized that it promptly notified its regulator, the Central Bank of Nigeria (CBN), alongside reporting the incident to the appropriate law enforcement authorities.

In response to this development, the company announced plans to enhance security measures on the affected platform and transition its users to an alternative platform. This action aims to ensure seamless business operations and continuity for its customers.

“As leaders, we continue to invest heavily in our security infrastructure to ensure customers continue to remain safe as they transact using Flutterwave.

“As a proactive step to strengthen security, we are enhancing safety features on the affected platform and will be migrating some of our customers to another platform to ensure they can benefit from the security enhancements. We will continue our advocacy for ecosystem-led system initiatives that will help in fighting security threats in the digital ecosystem across Africa.”

Last April [2023], the Nigerian fintech was forced to deny claims that it was breached two times in March 2023 with an estimated N550 million ($1.17 million) moved from Flutterwave.

The perpetrators of the attack allegedly used the fraudulently obtained funds from Flutterwave to buy USDT on the beleaguered cryptocurrency platform, Binance.