Flutterwave Says N2.9 Billion Hack Report Not True

Digital payment platform, Flutterwave, on Sunday denied reports of hack on its system which reportedly caused loss of N2.9 billion from its system.

Saying none of its customers lost any money as reported, the company however agreed that it recorded “an unusual trend of transaction”  on some of its user profiles during a routine check of its transaction monitoring system.

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It said its monitoring system  identified users who had failed to activate Flutterwave’s recommended security settings as probably susceptible to the trend, on which it took a very swift action to resolve before the users could suffer any harm.

“During a routine check of our transaction monitoring system, we identified  an unusual trend of transactions on some users’ profiles. Our team immediately launched a review (in line with our standard operating procedure), which revealed that some users who had not activated some of our recommended security settings might have been susceptible,”  Flutterwave said in a statement on Sunday.

“We want to confirm that no user lost any funds, and we take pride in the fact that our security measures were able to address the issue before before any harm could be done to our users. We want to reassure you that Flutterwave has not been hacked,” the company said.

Flutterwave said it monitors transactions through a dedicated system and a 24-hour fraud desk and constantly reviews suspicious activities, just as the company collaborates with other financial institutions and law enforcement agencies to secure its ecosystem.

“Our commitment to keeping our users’ financial information safe and secure is why we invest heavily in security initiatives such as periodic audits, certifications, and licenses such as the the PCI-DSS & ISO best practices in information security management.

“We want you to continue to trust us and feel secure in using Flutterwave for your business needs. Our commitment is to enable your business growth while keeping your financial information safe and secure.

Background

The news of a hack on Flutterwave’s platform was first broken by Techpoint in a report that claimed that hackers transferred as much as N2.9 billion out of Flutterwave accounts  in early February.

According to the report, Flutterwave’s legal counsel, Albert Onimole, had reported the case to Deputy Commissioner of Police, State Criminal Intelligence Department, Panti Yaba, Lagos.

The Techpoint report which cited a letter supposedly written by the lawyer, noted that the hack on Flutterwave’s accounts occurred on February 13. Stating that the funds were initially transferred to 28 accounts in 63 transactions, the report further revealed that the list of receiving accounts involved in the hack was given to the  to the police the same day.

Yet, the statement on the subject by Flutterwave did not provide details of the hack just as it denied that any money was lost without categorically addressing the reported hack.

What Social media users  said:

Interestingly, many on Social media claimed that Flutterwave’s statement was less than holistic as some Twitter users said they were actually affected by the reported hack.

One of the users claimed that his account has been blocked in connection with the funds.  A Twitter user Alex Onyia tweeted: “Futterwave has been hacked by Omar Edewor Trades with bank account number (1637479865 Access Bank) and several millions of naira have been stolen from people’s accounts. Everyone should generate a new API Key.”

@BiggyPrints tweeted: “I got a mail from my bank saying I’m a 4th beneficiary to this acclaimed fraud money. This was after over 5 days after a successful trade. My account is locked , can’t access fund inside. Pls is this right? It’s unfair I have zero business with Flutterwave or the hack.”