Flutterwave, a prominent fintech firm in Africa, reportedly lost between $7 million and $20 million due to a major security breach, as unauthorized individuals diverted funds to multiple bank accounts in April 2024.
According to TechCabal, Flutterwave, one of Africa's leading financial technology companies, has suffered a massive security breach that allegedly allowed unauthorized individuals to divert between $7 million and $20 million to multiple bank accounts in April 2024.
One financial services insider with direct knowledge of the incident revealed that the perpetrators illegally transferred ₦11 billion ($7 million) to several accounts over four days. However, a second insider claimed the amount involved was at least ₦20 billion ($13.5 million). While Flutterwave acknowledged detecting "unauthorized activities inconsistent with usual customer behavior" on one of its platforms, the company did not specify the amount involved.
In a statement to TechCabal, Flutterwave insisted that "no customer funds were lost or compromised, and the confidentiality of our customers' data remains intact." However, a highly-placed person with knowledge of the incident stated that the stolen funds were moved to accounts in five financial institutions over four days, likely evading fraud checks by keeping the deposits below certain limits.
The matter has been reported to law enforcement, and investigations have begun, according to the same unnamed source. Two executives in the financial services industry confirmed the incident and said Flutterwave requested KYC details of the accounts involved, which have been temporarily restricted.
This alleged security breach comes just a month after Flutterwave obtained a court order to recover $24 million lost due to unauthorized POS transactions. It is the fourth reported incident of unauthorized transfers at Flutterwave in the last 14 months, raising concerns about the company's cybersecurity measures and the potential impact on customer trust and regulatory compliance.
As Nigerians react to the reports, many are expressing concern and calling for greater transparency from Flutterwave regarding the breach's magnitude and the steps taken to safeguard customer funds and data.
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