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N1bn Loss: Moniepoint Bank Management Remains Silent, Leaving Subscribers in Disarray as Hacker Diverts Customer Funds

N1bn Loss: Moniepoint Bank Management Remains Silent, Leaving Subscribers in Disarray as Hacker Diverts Customer Funds

22 January, 2025

Moniepoint Microfinance Bank (MMB) is grappling with a significant security breach, as suspected fraudsters have reportedly stolen N1.1 billion from customers' accounts. The bank, which had previously assured customers in April 2024 that it had bolstered its security measures, is now facing mounting questions over the safety of depositors' funds.

Reports indicate that the breach occurred in May 2024, with hackers allegedly infiltrating the bank’s systems and stealing vast amounts of customer funds. The bank is actively working to recover the stolen money, but the incident has raised concerns about the integrity of its security infrastructure.

The primary suspect in the case, Sunday Ozimede, is accused of hacking into the bank’s vault and illegally transferring N1.19 billion from Moniepoint Microfinance Bank. Ozimede, who has since been arrested by the Police Special Fraud Unit (PSFU), was arraigned before Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos. He faces charges related to conspiracy and obtaining N945.7 million through fraudulent means.

The 43-year-old hacker is also accused of causing an additional N145 million in financial losses by introducing a bug into the bank’s data system, which facilitated the illegal transactions.

According to the PSFU’s prosecutor, Barrister Justine Enang, Ozimede and his accomplices (who are still at large) executed the fraudulent activities in May 2024. The prosecutor detailed how Ozimede diverted funds from various MMB customers' accounts through numerous unauthorized transactions to other banks.

The charges brought against Ozimede include violations of the Cyber Crimes (Prohibition, Prevention, etc.) Act, 2015 (as amended in 2024), and the Money Laundering (Prevention and Prohibition) Act, 2022. The prosecutor emphasized that Ozimede’s actions resulted in the unlawful conversion and transfer of funds that belonged to MMB customers.

Ozimede pleaded not guilty to the charges. His defense attorney, Abdulmalik Ibrahim, filed for bail, requesting that his client be granted release under liberal terms. However, the prosecutor argued that Ozimede posed a flight risk and may evade trial if granted bail.

After hearing both sides, Justice Lewis-Allagoa granted bail to Ozimede in the sum of N50 million, with one surety in a similar amount. The surety must be a property owner within the jurisdiction of the court. The terms of the bail will be verified by the court’s Registrar and the prosecutor.

The case has been adjourned to March 13, 2025, for further proceedings.

The amended charge against Ozimede reads in part: “That you, Sunday Ozimede, and others now at large, sometime in May 2024, in Lagos State, with intent to defraud, did conspire to commit a felony by obtaining N945,728,076.00 through false pretenses... thereby committing an offense contrary to Section 27(i)(b) of the Cyber Crimes (Prohibition, Prevention, etc.) Act, 2015 as amended.”