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Interswitch, a prominent African payments and infrastructure company, is reeling from a massive financial setback after suffering a loss of approximately ₦30 billion due to a chargeback fraud incident.

According to court documents reviewed by TechCabal and insiders familiar with the matter, a system glitch allowed unscrupulous merchants to exploit chargeback procedures, resulting in substantial financial losses for Interswitch. The company has initiated legal action to recoup the funds and has reported the fraud to Nigeria's anti-money laundering agency, the Economic and Financial Crimes Commission (EFCC). To date, Interswitch has managed to recover over ₦10 billion of the lost funds.

While the specific timeline of the chargeback fraud remains undisclosed, insiders suggest it has been ongoing for several years. The latest incident is attributed to both current and former Interswitch employees who may have taken advantage of vulnerabilities within the company's system. Authorities have arrested at least one individual in connection with the fraudulent activities
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