Flutterwave, a popular digital payments platform, has denied recent reports of a hack that allegedly led to the loss of N2.9 billion from its system.
In a statement issued on Sunday, Flutterwave said that none of its customers lost any money and that the platform was not hacked.
The company stated that it identified an “unusual trend of transactions” on some user profiles during a routine check of its transaction monitoring system.
The company reviewed the transactions and determined that users who had not activated recommended security settings may have been susceptible to the trend. Flutterwave took swift action to address the issue before any harm could be done to its users.
What Flutterwave is saying
Flutterwave confirmed that none of its customers lost any money due to the “unusual trend of transactions.” The company stated that its security measures were able to address the issue before any harm could be done to its users.
Flutterwave reassured its users that the platform was not hacked and that its responsibility to protect its users’ financial information was taken seriously.
- “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.”
- “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 any harm could be done to our users. We want to reassure you that Flutterwave has not been hacked.” Flutterwave said.
While noting that Flutterwave as a financial institution monitors transactions through its transaction monitoring systems and 24-hour fraud desk and reviews any suspicious activity, it said the company also collaborates with other financial institutions and law enforcement agencies to keep our ecosystem safe and secure.
- “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 PCI-DSS & ISO 27001. These are in line with global 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.”
Back Story
Reports of a hack on Flutterwave’s system were first reported by Techpoint. The report claimed that hackers transferred over N2.9 billion from Flutterwave accounts in early February.
- Flutterwave’s legal counsel, Albert Onimole, reportedly reported the case to the Deputy Commissioner of Police, State Criminal Intelligence Department, Panti, Yaba, Lagos.
- Citing the lawyer’s letter, it was reported that the hack on Flutterwave’s accounts occurred about two weeks ago from February 13.
- It was said that the money was initially transferred to 28 accounts in 63 transactions. While the incident was reported to the police on February 13, 2023, with the list of accounts that had received the money, the police could not freeze the funds.
Flutterwave’s press release did not provide specific details of the alleged hack. While the press release clearly denies any money was lost, it did not deny that a hack event did occur albeit unsuccessful.
Twitter Users’ Claims
Despite Flutterwave’s statement, some Twitter users claimed to have been affected by the alleged hack. A user claimed that his account had been blocked in connection with the stolen funds from Flutterwave. Another user urged Flutterwave’s users to apply security measures, including generating a new API Key.
- “Flutterwave 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,” a Twitter user Alex Onyia tweeted.
Another user tweeted @BiggyPrints also reported that his account had been blocked in connection with the stolen funds from Flutterwave.
- “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,” another Twitter user @BiggyPrints tweeted.
Cyber hacks are getting rather more prominent, with hackers making away with millions of dollars. Businesses need to triple up their cybersecurity efforts. Now, more than ever!