Further information has emerged over reasons that prompted Zenith Bank to embark on emergency upgrade, forcing other banks to also embark on similar urgent upgrades.

According to a data gathered by Diaspora Digital Media (DDM), Zenith Bank embarked on such upgrade after losing ten billion Naira to hackers, with 818 different accounts affected.

It was learnt that the scammer also upgraded some of the accounts to access more funds.

In a report dated October 4, 2024, entitled “Customers stranded as Zenith Bank goes under for 3 days“, DDM had reported that Zenith Bank customers in Nigeria expressed frustration with the bank after the institution went under for three days.

Customers said that they faced significant disruptions, experiencing difficulties with transaction processing.

Earlier in the week, the bank took to its social media handle, “X” (formerly Twitter), and announced that disruption might occur due to routine maintenance of technological infrastructures.

In an Editorial entitled “Zenith Bank’s network collapse, a national disgrace”, DDM noted that the bank’s virtual platforms and ATM cards have been inexplicably inactive.

The collapse had inflicted untold hardship on millions of customers across Nigeria and beyond.

The report stated: “Zenith Bank’s virtual platforms and ATM cards have been inexplicably inactive, inflicting untold hardship on millions of customers across Nigeria.

“This catastrophic failure has paralyzed business transactions, put lives and businesses at risk, caused immeasurable distress, and shattered trust in the institution.

“The bank’s glaring inability to resolve this issue reeks of the bank’s callousness, incompetence and disrespect of customers.

“A terse notice on the second day of the glitch had explained that the “bank’s virtual platforms were undergoing maintenance and normalcy would return within 24 hours.”

“About a week later, the situation has remained unchanged, and the bank remains unbothered about the plight of its customers.

“In an era where digital banking is the norm, Zenith Bank’s IT infrastructure has proven woefully inadequate.

“This debacle raises fundamental questions about Zenith Bank’s management and regulatory oversight.

“How could a bank of its stature fail so spectacularly? Why the inexcusable silence from its leadership?”

Following a motion ex parte filed by the police on behalf of the bank, Justice James Omotosho of the Federal High Court in Abuja ordered the bank to freeze 818 accounts.

The order had lasted for 14 days.

The accounts were under investigation for allegedly receiving “proceeds of crime” resulting from the N10 billion cyberattack on Hope Payment Service Bank platform.

The court will later, on October 17, order that the affected 818 bank accounts be frozen for an additional 30 days.

The order followed a request by the Inspector General of Police (IGP), which was granted by Justice Omotosho.

The motion, marked FHC/ABJ/CS/1358/2024, was filed Jarnes Akagwu Isaac, Akwubo Gosent, Shirsha Paul Terver, and 815 others, including several banks.

The prosecutors submitted that the accounts, through which the defendants were alleged to have obtained proceeds of crime, were subject to investigation, and demanded for the action.

The legal team made the submission in an affidavit deposed to by a staff of the Nigeria Police Force at its headquarters in Abuja, Mr. Muhammed Idris.

Meanwhile, a petition had been filed by the Managing Director/Chief Financial Officer on behalf of Hope Bank, reporting a case of fraud, criminal diversion, conversion of funds, and conspiracy against the defendants.

Investigations revealed that the bank lost N10 billion to the cyberattack.

Police authorities explained that it had submitted the freezing order to various financial institutions involved.

The affidavit reads in part: “As a result of the fraudulent activities and cyberattacks on the banking platform of the nominal complainant, they lost the sum of N10,000,000,000.00 ($6,108,698.18 USD).

“The money was transferred or diverted to the various accounts of the 1st to 818 defendants, respondents in the attempt to flitter away with the proceeds of the crime.

“That investigation revealed that the said funds were laundered into the following accounts of the 1st to 818 defendants.

“That the total sum of funds moved from the petitioner’s financial institution is estimated at $ 6,108,698.18 USD.”

Police authority explained that it had sent the earlier freeze order to affected financial institutions, but some are yet to be submitted.

Following the attack on Zenith Bank, several Nigerian banks have embarked on hasty upgrades on their platforms in a bid to boost cybersecurity defences and secure depositors’ funds.

For more information about Zenith Bank and its activities, read the report below:

Customers stranded as Zenith Bank goes under for 3 days

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