The Federal High Court in Abuja has extended a freezing order on 818 bank accounts under investigation for allegedly receiving proceeds from a N10 billion cyber-attack on the Hope Payment Service Bank (PSB) platform. The Inspector General of Police (IGP) was granted an additional 30 days to freeze these accounts to allow for further investigation. This extension, granted by Justice James Omotosho on Monday, October 14, 2024, follows a previous 14-day freezing order issued in late September.
The case came to the forefront after the IGP, acting on a petition from Hope PSB, requested the court to extend the initial freeze. The bank reported the cyber-attack, which resulted in a staggering N10 billion loss, to the Nigerian Police Force. The funds were allegedly transferred across multiple accounts, triggering an immediate investigation by the authorities.
Allegations of Fraud and Criminal Diversion
The IGP’s motion, filed under case number FHC/ABJ/CS/1358/2024, named 818 defendants, including individuals such as James Akagwu Isaac, Akwubo Gosent, and Shirsha Paul Terver, as well as several banks where the funds were transferred. The IGP’s legal team argued that the bank accounts connected to these individuals contained money obtained from criminal activity, making the freeze necessary while the investigation progressed.
An affidavit submitted by Mohammed Idris, a member of the Nigerian Police Force, detailed the specifics of the case. Idris recounted how Hope PSB’s Managing Director and Chief Financial Officer lodged a petition to the IGP, reporting significant fraudulent activities that had led to the diversion of N10 billion from the bank’s platform. According to Idris, the bank urgently needed the funds to be traced and recovered to mitigate further damage.
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Cyber-Attack and the Freezing of Accounts
The affidavit revealed that the cyber-attack on Hope Bank had resulted in the loss of exactly N10,000,000,000.00 (Ten Billion Naira), with the stolen funds being transferred into various accounts of the 818 defendants. Idris pointed out that these transfers were carried out with the intention of laundering the money and concealing its origin. He noted the necessity of freezing the accounts involved to prevent the dissipation of these illicit funds.
Following the initial 14-day freeze granted in September, some banks received the order to suspend the accounts under investigation, but others had yet to comply fully. With investigations still ongoing, the IGP deemed it necessary to request an extension of the freeze for another 30 days. The police aim to complete their investigation and possibly bring charges against those involved.
Court Proceedings and Extension of the Order
At the hearing on October 14, the IGP’s counsel, Barrister Eleodimuo Nonso, presented the motion to the court, requesting an extension of the freeze. Nonso explained that the investigation into the cyber-attack had made significant progress, with many suspects cooperating with investigators. However, more time was needed to gather all necessary evidence.
In response, Justice Omotosho granted the IGP’s request for a 30-day extension, allowing the police to continue their investigation without risking the loss of the funds under scrutiny. The judge issued a brief ruling, approving the freeze while advising the IGP’s legal team to exclude bank accounts with minimal sums, such as N1,000, from the investigation, as they were likely insignificant in the larger scheme of the fraud.
Background on the Cyber-Attack on Hope PSB
Hope Payment Service Bank, one of Nigeria’s leading digital banking platforms, recently faced a major cyber-attack targeting its financial system. The attackers attempted to siphon billions of Naira from the bank, but the digital institution, alerted in time, was able to thwart the attack at the last moment, preventing further damage.
Investigations into the incident revealed that while Hope PSB had successfully averted the full extent of the fraud, a large portion of the stolen money had already been transferred to various bank accounts. The police stepped in to recover the diverted funds, leading to the current court order and ongoing investigation.
Implications for the Banking Sector
This case highlights the increasing sophistication of cyber-attacks targeting Nigeria’s financial institutions. The incident at Hope PSB underscores the need for enhanced security measures within the banking sector to safeguard against such large-scale fraudulent activities. With the investigation ongoing, this case will likely set a precedent for how future cybercrime cases are handled in the country.
