Globus Bank Embroiled In Alleged N1.7bn Electronic Transfer Fraud

In a bid to recover a total sum of N1,755,376,156.34 fraudulently transferred electronically from its vault, Globus Bank Limited has filed an application before a Lagos High Court, urging it to order the reversal of the funds from the account of the fraudulent beneficiaries domiciled in eight commercial banks.

According to an affidavit sworn to by the legal officer of Globus Bank Limited, Mr. Kosisochukwu Ngene filed before the Court by a Legal practitioner, Barrister V.K. Banjo, the deponent make oath and stated as followed: “That Globus Bank is a commercial bank with the registered office at No 6, Adeyemo Alakija Street, Victoria Island, Lagos and licensed under the laws of Nigeria to carry out banking business in Nigeria”.

“That between Monday 6th and Saturday 11th of June 2022, there was a system glitch in the Globus Bank’s Unstructured Supplementary Service Data (USSD) application, which led to the processing of several fraudulent and unauthorized electronic transfer in the sum of 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.”

“That 709 Globus Bank customers’, who were involved in the fraudulent transfer to the various accounts domiciled with the eight commercial Banks are contained in the Excel sheet filed before the Court.”

“That immediately, Globus Bank discovered the glitch, the Bank instantaneously notified all the banks involved and requested that the beneficiary accounts be restricted in line with Central Bank of Nigeria regulations to avoid dissipation of the funds fraudulently transferred into the accounts domiciled with the banks.”

“Subsequently, Globus Bank immediately approached the Yaba Magistrate Court 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.”

“The Excel sheet, which contains the names of the respondents, the total amount fraudulently transfered from Globus Bank, the total amount salvaged and returned to the Globus Bank and the total amount outstanding is analyze and filed before the Court.”

“That the parties in this suit are also financial institutions; therefore, the order of this Honourable Court is also required, to enable the Respondents reverse the salvaged fund back to the Applicant.”

“Although, the Applicant obtained an order of restriction on the accounts domiciled with the Respondent Banks from the Magistrate Court, as exhibited before the Court, Globus Bank still requires the order of the High Court to enable the Respondents reverse and remit the salvaged funds to the bank.

Some of the Respondent banks are ready and willing to reverse and remit the salvaged sum to the Globus Bank when the order of the Court was served on them, and have further requested an order of the High Court, to enable them reverse and remit the salvaged funds.

The requirement for formal proceedings has resulted in the apparent delay between the date of the transaction and the filing of the instant application.

Therefore, it would be unjust and inequitable for the Respondents to refuse to reverse and recall the transfer of the sum fraudulently transferred in the unauthorized transaction, as that would amount to unjust enrichment on the part of the Respondent banks’ customers.

The Respondents are not contesting the facts stated in this case but require Court order of the High Court to compel the Respondents to reverse the amounts to the Applicant.

It will be in the interest of justice for the reliefs sought in the Originating Summons to be granted as prayed, as the Respondent would not be prejudiced.

That the Rules of this Honourable Court empower this Court to hear an urgent matter such as this.

Globus Bank herein is willing to give an undertaking as to damages if this order ought not to have been made. Consequently,Globus Bank is seeking the following reliefs from the court.

“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.