Alpha Morgan Bank Customers Lose Over N200 Million Over System Glitch

Two customers of Alpha Morgan Bank Plc-NEM Insurance Plc, and Extension Publications Limited have joined the bank in suing 19 financial institutions over the alleged disappearance of N230,978,536 during what the bank described as a system glitch.

The suit, filed at the Federal High Court in Lagos, seeks urgent orders to block multiple bank accounts across the financial sector and recover the allegedly diverted funds.

According to an affidavit sworn to by Dayo Abe, a litigation officer at the law firm of Babafemi Akinsete & Co., the technical malfunction in Alpha Morgan Bank’s system was exploited by certain service merchant agents operating as digital financial services providers.

These agents, the affidavit states, “took advantage of the glitch and unlawfully initiated multiple transfers” from the customers’ accounts into accounts domiciled in the 19 financial institutions now listed as defendants.

Further investigation by Alpha Morgan Bank reportedly revealed that the total amount illegally moved from the accounts of NEM Insurance Plc and Extension Publications Limited was N230,978,536, spread across multiple bank accounts linked to several BVNs.

Following the bank’s complaint, the 19 financial institutions were said to have placed temporary post-no-debit restrictions on the suspicious accounts.

However, the plaintiffs warn that unless all accounts connected to the perpetrators’ BVNs, including accounts not yet identified, are frozen, the funds may be irretrievably lost.

The affidavit explains that the suspects had already begun transferring the money from the first-level beneficiary accounts into other banks to “continue to unlawfully dissipate the said funds.”

The plaintiffs argue that the bank and its affected customers have suffered “humongous fraud” resulting from the system glitch, and that failure to immediately block the linked accounts will cause “untoward hardship and dire financial loss” to both the bank and its shareholders.

They are, therefore, asking the Federal High Court to issue an order compelling the 19 banks to reverse and refund all “wrongfully, illegally and illicitly debited” sums back into Alpha Morgan Bank’s settlement and collection account.

The court is yet to fix a date for the hearing.

SOURCE: PMNEWS