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Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers - Business - Nairaland

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Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by micheal34(m): 11:32am On Jun 28, 2022
Momo Payment Service Bank Limited (Momo PSB), the fintech subsidiary of MTN Nigeria, has dragged 18 commercial banks to court to retrieve N22.3 billion “erroneously transferred to 8,000 bank customers”.

The company said the erroneous transfers were due to “system exploitation”.

According to reports, MoMo PSB experienced a major security breach barely a week after commencing operations, resulting in a N22 billion loss.

In a suit marked FHC/L/CS/960/2022 and filed on May 30, 2022, the PSB asked the court to declare that the deposits worth N22.3 billion belonged to it (Momo PSB) and not the banks’ customers.

The affected banks, listed as defendants in the suit, are Access Bank, Ecobank, Fidelity Bank, First Bank, First City Monument Bank, Guaranty Trust Bank, Heritage Bank, Polaris Bank and Providus Bank.

Others include StanbicIBTC, Standard Chartered, Sterling Bank, Suntrust Bank, Union Bank, United Bank for Africa (UBA), Unity Bank, Wema Bank and Zenith Bank.

The request formed part of the reliefs sought in the suit filed by Lotanna Okoli, a senior advocate of Nigeria, on behalf of MoMo PSB.

“A declaration that the deposits of an aggregate sum of N22,300,000,000.00 erroneously transferred by the plaintiff to the accounts of the customers of the defendant banks, having been done in error, belongs to the plaintiff and not the customers of the defendant banks,” the court filing reads.

“An order directing the defendant banks to each, individually, account for the sums available in their customers’ accounts and the sums which have been removed by the customers and are no longer available.

“An order directing the defendants’ banks to immediately return the aggregate sum of N22,300,000,000.00, less those funds that are no longer available, to the plaintiffs’ settlement account in the name MOMO PSB settlement account number: 2041379385 at First Bank Plc Samuel Asabia House 35 Marina, Lagos, from where the funds originated.

“An order directing the defendant banks to release all information, including account name information in respect of the accounts from which the plaintiff’s funds have been transferred to third parties, including the destination accounts and the banks in which they are held to assist in the tracing and recovery of those funds.”

In an affidavit supporting originating summons, Usoro Usoro, chief executive officer of MoMo PSB, said that on May 24, 2022, it was noticed that funds had been mistakenly transferred from its settlement account to various accounts in the banks.

Usoro further claimed that about 700,000 transactions were processed, with credits made into about 8,000 various accounts in the listed 18 banks.

Upon becoming aware of the incident, he said the MOMO PSB Ltd management responded by immediately shutting down the service to limit the impact.

He explained that the PSB engaged with the 18 banks for the commencement of recovery activities from the accounts of the various beneficiaries.

Usoro said MoMo PSB resorted to the court because of the insistence of the 18 banks that they needed a court order to reverse the deposits made into customers’ accounts.

The plaintiff, therefore, prayed the federal high court to compel the 18 commercial banks operating in the country to make refunds.


https://voicesuit.com/mtns-momo-bank-mistakenly-transfers-n22-3-billion-to-8000-customers/

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Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Nobody: 11:37am On Jun 28, 2022
Manner from above shocked

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Healthrelatedjo: 11:43am On Jun 28, 2022
Na to go check my abandoned Polaris bank acct o

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Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Nobody: 11:45am On Jun 28, 2022
shocked
I haven't seen anything o
grin grin

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Nobody: 11:46am On Jun 28, 2022
Healthrelatedjo:
Na to go check my abandoned Polaris bank acct o
Hahahaha

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Healthrelatedjo: 11:50am On Jun 28, 2022
Jennifer663:

Hahahaha
e fit reach me na lol

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Nobody: 11:55am On Jun 28, 2022
Healthrelatedjo:
e fit reach me na lol
It will reach us
Abeg go n check o

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by MightyHand(m): 11:55am On Jun 28, 2022
Nice Customer...
MTN and Banks are both scammer, they charge the citizens excessively with lot of irrelevant VAT.

2 Likes

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by halaqasa: 12:56pm On Jun 28, 2022
E Be many things walahi

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by SHINJA: 1:10pm On Jun 28, 2022
Small money angry
Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by qrymz(m): 1:11pm On Jun 28, 2022
This error made almost every youth in Bida, Niger state a millionaire overnight. It was a short code which was supposed to work only once that kept working at every try. I don't know how they knew about this glitch in that town but the cashed out big time.

I don't understand how an error in their code becomes the fault of other banks though

3 Likes

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by SouthSouth1914: 4:04pm On Jun 28, 2022
Who gave them the account details of these 8,000 customers of other banks?

MTN should be sued for access and breach of customer data. I hope they don’t recover their money so this their MOMO bank can go into oblivion!
Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by gift01: 4:17pm On Jun 28, 2022
qrymz:
This error made almost every youth in Bida, Niger state a millionaire overnight. It was a short code which was supposed to work only once that kept working at every try. I don't know how they knew about this glitch in that town but the cashed out big time.

I don't understand how an error in their code becomes the fault of other banks though
Tell us more. So did they use the cash wisely?

1 Like

Re: Mtn’s MOMO Bank "Mistakenly" Transfers N22.3 Billion To 8,000 Customers by Tonymegabush1(m): 7:26pm On Jun 28, 2022
In this country things are hard already such mistake could be assumed a buttered bread

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