Stanbic IBTC Bank has reportedly fallen victim to a sophisticated cyberattack, resulting in a staggering loss of ₦576,664,517.
The breach, which exploited vulnerabilities in the bank’s internal security systems, has prompted swift legal and investigative action aimed at tracking the perpetrators and recovering the stolen funds.
According to reports, the fraudsters strategically distributed the stolen money across several bank accounts, using them to facilitate transactions with unsuspecting individuals and legitimate businesses. The case was formally reported to the Police Special Fraud Unit (PSFU) in Ikoyi, Lagos, which subsequently launched a thorough investigation.
Investigative Trail: 450+ Accounts, 37 Financial Institutions
The PSFU’s forensic probe uncovered a widespread network of more than 450 beneficiary accounts spread across 37 financial entities, including traditional banks, fintech companies, and microfinance institutions.
In response to the findings, the police filed a motion ex parte on February 11, 2025, at the Federal High Court in Lagos, under suit number FHC/L/MISC/130/2025, to secure an order to freeze these accounts.
The motion, submitted by a police legal representative, Mr. Enang, and supported by a sworn affidavit from Superintendent Sunday Ubanni of the PSFU, requested several urgent reliefs. These included the freezing of all identified accounts and the arrest of individuals linked to them.
Court Orders Account Freezes and Arrest Powers
Presiding judge Justice Alexander Oluseyi Owoeye granted the police’s requests, authorizing the immediate post-no-debit order on all listed accounts and giving the police the mandate to arrest any individuals associated with the fraudulent transactions for up to 90 days, pending the outcome of ongoing investigations.
In addition to freezing accounts, the court ordered the 37 financial institutions involved to provide comprehensive documentation, including:
- Certified True Copies of account opening packages
- Full transaction histories from January 1, 2023
- Linked BVNs and mandate cards
- Contact information and alert phone numbers
- Certificates verifying digital printouts under the Evidence Act
The banks were also instructed to reverse and return any remaining fraudulent funds to a designated “Special Reserved Account” at Stanbic IBTC Bank, Account Number: 9200026167, the official complainant in the matter.
Cryptocurrency Trader’s Account Flagged in Error
Among those affected is Ogundele Taofeek, a cryptocurrency trader who now finds himself entangled in the case despite claiming no wrongdoing. On January 29, he received ₦14.1 million through multiple transfers from Barnabas Nnabuike Ngwu, a customer of Zenith and Parallex Banks. The funds were deposited into Taofeek’s Kuda and OPay wallets as part of what he described as a legitimate crypto deal.
“I had no reason to suspect foul play,” Taofeek said in an interview. “The payments were made in several batches—₦9.5 million to my Kuda account and ₦4.6 million to my OPay account—all successfully processed.”
However, just hours later, both Kuda and OPay flagged the transactions as fraudulent, freezing his accounts. Alarmed, Taofeek contacted both banks and was informed that the funds had ties to the cyber breach at Stanbic IBTC—a situation he claims he had no prior knowledge of.
Efforts to Clear His Name
In a bid to prove his innocence, Taofeek submitted transaction records, screenshots of his dealings with Ngwu, and business documentation. He also obtained and submitted a police report by January 31, as requested by Kuda Bank.
Despite his efforts, on March 23, Kuda Bank informed him that it had been served a court order from Stanbic IBTC, seeking to reverse the funds in his account. The court documents named him alongside several others as alleged beneficiaries of the fraud.
“I’ve never operated an account with Stanbic IBTC,” Taofeek emphasized. “My transaction was with a verified customer from other banks, and I had no idea the money was connected to any breach.”
He has since hired a lawyer to defend his financial rights and clear his name, expressing frustration at the lack of response and resolution from the involved institutions.
Corporate Silence and Ongoing Proceedings
Efforts to get official responses from the financial institutions have yielded limited results. While OPay’s Head of Marketing, Adeyemi Adekunle, acknowledged the inquiry and promised to provide feedback, Kuda Bank has remained silent on the matter as of the latest update.
The case is set to continue on May 28, when the court expects a report on the progress of the police investigation.
