The Federal High Court in Lagos has ordered 54 banks to return a total of N9.3 billion fraudulently transferred from an unnamed old generation bank following a major cybersecurity breach. The ruling, delivered on April 15, 2025, stems from an ex parte motion filed under suit number FHC/L/CS/629/2025.
The stolen funds were the result of a coordinated hack on the bank’s core system on March 23, 2025, which led to unauthorised withdrawals from multiple customer accounts. The money was subsequently dispersed in tranches across accounts in 54 financial institutions nationwide, according to the bank’s report to the court.
Justice Dipeolu, presiding over the matter, ordered all receiving banks to place a Post No Debit restriction on implicated accounts and begin the immediate return of all traceable funds. The order also mandated the institutions to provide full account details of recipients, including balances, transactional histories, and all customer data linked to the illegal transfers.
Investigations revealed that the stolen sums were first moved into primary accounts and later routed through a network of secondary and tertiary beneficiaries. The judge ruled that restrictions on these accounts should remain in place until all recoverable funds are returned, limited to the amounts each account received.
The court emphasized that the ruling strictly targets funds unlawfully transferred during the breach and does not affect other legitimate customer deposits. In the judgment, Justice Dipeolu made clear that the stolen money “belongs to the plaintiff and not the customers of the respondent banks,” affirming the bank’s right to full restitution and the court’s authority to enforce it.
This landmark ruling highlights the growing risk of digital banking breaches and reinforces the responsibility of financial institutions to act swiftly in containing fraudulent disbursements. It also underscores the judiciary’s role in enforcing financial accountability and restoring trust in the banking system.
