Flutterwave, one of Africa’s leading fintech companies, is poised to undertake a substantial recovery effort following a High Court ruling granting it the authority to recover ₦19 billion illegally transferred by Point of Sale (POS) merchants.
The company plans to contact over 6,000 account holders across 35 banks and financial institutions to reclaim the funds.
The dispute arose in 2023 when Flutterwave discovered unauthorized transactions conducted by certain POS device merchants, prompting the temporary suspension of implicated accounts to prevent further irregularities.
While the incident didn’t result in the loss of customer funds, it exposed the vulnerability of the system to abuse.
A recent court ruling, known as a Mareva injunction, empowers Flutterwave to initiate the recovery process, targeting account holders who may have received funds from the unauthorized transactions.
This move is critical as the recipients may have already utilized the funds received.
In response to the court order, Flutterwave intends to engage with the relevant authorities to address the situation comprehensively.
It plans to communicate with the affected account holders through email, SMS, and WhatsApp messages, leveraging their respective contact information provided by the financial institutions involved.
The recovery effort underscores Flutterwave’s commitment to upholding financial integrity and protecting the interests of its customers.
The company’s proactive stance reflects the evolving challenges faced by fintech firms in ensuring secure and transparent transactions amidst the dynamic landscape of digital finance in Africa.