In a significant legal ruling, the Federal High Court in Lagos has directed 54 banks to return a total of ₦9.3 billion that was fraudulently transferred by hackers. The court’s decision, delivered by Justice Deinde Dipeolu, holds the banks accountable for their failure to prevent the cybercrime, which exploited vulnerabilities in the banking system.
The funds, which were stolen through unauthorized transactions, were moved from various accounts in Union Bank of Nigeria Plc. The hackers used sophisticated methods to bypass security measures and gain access to the accounts, prompting the court to order the banks to trace and recover the stolen funds. The ruling mandates that the banks return the full amount to the affected customers promptly.
The case highlights the growing threat of cybercrime in Nigeria’s financial sector and serves as a strong reminder to banks about the importance of securing their platforms and ensuring that adequate measures are in place to protect customer funds from fraudsters.
In his judgment, Justice Dipeolu emphasized the need for financial institutions to invest in robust cybersecurity frameworks, warning that negligence in safeguarding customer assets would not be tolerated. He also urged the banks to implement necessary measures to prevent future breaches.
This ruling is expected to set a significant legal precedent in the country’s approach to cybersecurity within the banking sector. As investigations continue, experts anticipate that this case could lead to further reforms and heightened vigilance across Nigeria’s financial institutions.
