Flutterwave Once Again Debunks Rumour of Breach on Its System

Nigerian fintech company that provides payment infrastructure for global merchants and payment service providers across the continent Flutterwave, has once again denied rumours of a breach on its system.

Flutterwave disclosed that as previously addressed in its public statement, there was no incident of hacks as the company conducts routine checks of transaction monitoring system. Despite the company’s claims, sources familiar with the incident alleged that the payment platform was hacked twice by fraudsters.

In the first incident, they disclosed that fraudsters used money illegally obtained from Flutterwave accounts to purchase Tether (USDT), one of the largest stablecoin by market capitalization on the crypto exchange platform Binance. Three beneficiary accounts that directly received the money disclosed that they jointly worked on fulfilling a USDT request that ran into billions of Naira for a Chinese merchant.

As a result of this, reports reveal that about 295 people were affected by the incidents whose accounts remain frozen after Flutterwave wrote a petition to the police and the courts to block the accounts in order to begin investigations. There are reports that people who have their accounts locked by Flutterwave have submitted petitions against the fintech company to the Nigerian Human Rights Commission and the Federal Competition and Consumer Protection Commission.

Recall that in February this year, reports revealed that Flutterwave’s legal counsel Albert Onimole reported a case to the deputy commissioner of police, state criminal intelligence Department, Panti, Yaba, Lagos, of hackers transferring over N2.9 billion from Flutterwave accounts in Nigeria.

The company then proceeded to freeze accounts where hackers transferred some of the money and filed a lawsuit in the Magistrate Court of Lagos to investigate accounts that received the stolen funds across different financial institutions in Nigeria.

After a thorough investigation, Flutterwave identified an unusual trend of transactions on some users’ profiles. The company’s team launched a review and discovered that some users who had not activated recommended security settings might have been susceptible. The company then issued a reminder to users on the importance of adhering to security measures, especially companies that deal with financial institutions.

Again in March 2023, Flutterwave denied another report that hackers stole over $4 million from its accounts in Nigeria. In a statement released by the fintech company, it affirmed that none of its users lost any funds, and neither were there any complaints. It further noted that its security measures were able to address any case of hack before it could affect its millions of users.

Investors King understands that incessant reports of alleged hack cases on Flutterwave have raised concerns among users. However, the fintech giant has continued to assure users of its commitment to keeping their financial information safe and secure, urging them to continue to trust and feel secure using the platform for their personal or business needs.

Flutterwave further disclosed that the company invests heavily in security initiatives such as periodic audits, certifications, and licenses such as the PCI-DSS & ISO 27001 which are in line with global best practices in information security management.