Connect with us

NEWS

Union Bank system hacked as customers lose N9.3 billion to fraud

Published

on

Union Bank of Nigeria Plc led by Yetunde Oni, is currently grappling with a massive N9.3 billion fraud following a significant operational system breach, THE WITNESS reports.

The development comes exactly one year and three months after the Central Bank of Nigeria (CBN) sacked the bank’s board and entire management, citing governance failures. A new management team was subsequently appointed to lead the financial institution.

Union Bank is battling to recover the sum of N9,329,322,870.00 (nine billion, three hundred and twenty-nine million, three hundred and twenty-two thousand, eight hundred and seventy naira), withdrawn from customers’ accounts without authorization.

In a suit marked FHC/L/CS/629/2025, filed before the Federal High Court in Lagos, seen by THE WITNESS, Union Bank sought a preservative order compelling the financial institutions involved to place Post No Debit restrictions on the accounts of all beneficiaries and to return the stolen funds traced to their institutions.

According to the bank, the fraud followed an operational failure and fraud in its core banking system on March 23, 2025, which led to unauthorized transfers from customers’ accounts.

An affidavit deposed to by Oluwasegun Falola, head of the E-Fraud Investigations Department at Union Bank, stated that the funds were fraudulently and erroneously transferred from the bank to various accounts across 53 financial institutions.

Falola explained that on March 23, 2025, the bank observed that N9.3 billion had been debited from customer accounts and dispersed into various accounts maintained by the respondent banks. He added that Union Bank immediately contacted the banks involved in a bid to halt further dissipation of the funds.

“The Fraud Desk Department of the bank, in the course of its investigations, discovered that the monies were transferred in trickles into several accounts domiciled with the 1st to 54th Respondents,” the affidavit stated.

Union Bank attributed the unauthorized debits to a system glitch and exploitation, which it says enabled the illicit transfers.

“The funds were erroneously and fraudulently transferred from customers’ accounts.

“Upon further investigation, it was found that the funds were subsequently moved from these primary beneficiary accounts to other accounts also held by the respondents.”

The bank disclosed that it had submitted the list of recipient accounts to the respective financial institutions as a preliminary measure to recover any remaining funds

To support its recovery efforts, the bank said its internal audit and legal departments compiled detailed reports tracing the flow of funds and identifying all beneficiary accounts.

When the case was mentioned on April 2, 2025, Union Bank’s counsel, A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being moved.

“₦9.3 billion has been moved from the account, and they are still moving funds. We now have more people involved in moving the funds,” the lawyer told the court.

To support its recovery efforts, the bank said its internal audit and legal departments compiled detailed reports tracing the flow of funds and identifying all beneficiary accounts.

When the case was mentioned on April 2, 2025, Union Bank’s counsel, A. Adedoyin-Adeniyi, informed the court that the stolen funds were still being moved.

“₦9.3 billion has been moved from the account, and they are still moving funds. We now have more people involved in moving the funds,” the lawyer told the court.

In his ruling, Justice Deinde Dipeolu agreed with the submissions and thereafter granted a motion ex parte filed by the bank concerning the unauthorized fund transfers.

“Having reviewed the motion ex parte, the application is hereby granted,” the judge ruled.

The incident has raised broader concerns about the security of Nigeria’s banking infrastructure, especially as interbank transactions continue to increase. Financial analysts suggest that outdated systems and inadequate oversight may be exacerbating vulnerabilities, heightening the risk of fraud and transactional errors.

Union Bank did not respond to THE WITNESS’ inquiries as at press time.

(S) Witnessngr

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

NEWS

Governor Dauda Lawal Hails Troops for Successful Fight against Banditry, Terrorism across Zamfara State

Published

on

By

Governor Dauda Lawal has commended the troops of the Joint Task Force (North West) Operation Fansan Yamma for achieving significant operational successes against bandits in Zamfara State. The troops of the Joint Task Force launched an elaborate and coordinated onslaught in the early hours of Thursday, May 7, 2026, in the Kaura Namoda and Birnin Magaji Local Government Areas of Zamfara State. Following the encounter, troops effectively neutralised three gang leaders and recovered a cache of weapons and ammunition, which included an AK-47 rifle, a machine gun, a locally fabricated handgun, seven rifle magazines and a total of 571 rounds of ammunition.Governor Lawal described the renewed military offensive as timely, particularly due to the successful operation recorded on May 10, 2026, which disrupted a significant gathering of notorious terrorist leaders and neutralised several commanders. The troops acted on an intelligence report that confirmed that the terrorists had converged at a concealed location in Tumfa Village, Shinkafi Local Government Area, with the intention to coordinate attacks and criminal activities targeting innocent communities in the state. The Air Component launched a precision airstrike on the identified terrorist hideout that successfully destroyed the structure, which served as the terrorists’ meeting point. The governor further reiterates Zamfara State Government’s commitment to ongoing support and logistics for the military and other security agencies operating in the state.

Continue Reading

NEWS

Governor Dauda Lawal Approves N3.2 Billion to renovate School of Nursing in Zurmi

Published

on

By

His Excellency, the Executive Governor of Zamfara State, Dr. Dauda Lawal, has officially approved the sum of N3.2 billion for the complete renovation, accreditation, and commencement of academic activities at the Zamfara State School of Nursing and Health Sciences, located in Zurmi Local Government Area. This was confirmed in an official statement released marking a major intervention in the state’s ailing healthcare education sector, which has suffered years of neglect and infrastructural decay.According to government sources, the funds will be channeled into three critical areas: the overhauling of lecture halls, administrative blocks, student hostels, and practical demonstration labs to meet modern standards; the settlement of regulatory fees and implementation of curriculum upgrades required by the Nursing and Midwifery Council of Nigeria (NMCN); and enabling the school to admit its first batch of students in over five years, with a focus on midwifery, community health and general nursing. Speaking on the development, the state Commissioner for Health described the approval as a new chapter in healthcare manpower development, noting that the Zurmi school has remained non-functional for nearly a decade due to poor infrastructure and loss of accreditation. Governor Dauda Lawal is not just renovating a school but rebuilding the backbone of primary healthcare delivery in Zamfara, adding that without trained nurses and community health workers, the state’s hospitals cannot function and that this N3.2 billion investment will change the narrative.Residents of Zurmi and prospective students have greeted the news with excitement, with many having lost hope of ever seeing the institution reopen. Governor Dauda Lawal, who has made health sector revitalization a cornerstone of his administration, was quoted as saying that his government remains committed to accessible, quality education and healthcare across all 14 local government areas of the state, adding that no Zurmi child should travel hundreds of kilometers just to become a nurse. The state government has issued a directive to the Ministry of Health and the Ministry of Education to ensure the project is completed within nine months, with accreditation visits scheduled to begin before the end of the current fiscal year.

j

Continue Reading

NEWS

NASSCO Honours Zamfara Governor Dauda Lawal with Excellence Award for Inclusive Governance

Published

on

By

Governor Dauda Lawal of Zamfara State has received the Award of Excellence from the National Social Safety Nets Coordinating Office (NASSCO) in recognition of his administration’s commitment to inclusive governance and social protection delivery.

The award was presented during a stakeholder engagement event with local government chairmen, held at the Transcorp Congress Hall in Abuja.

NASSCO, a federal agency operating under the Federal Ministry of Humanitarian Affairs and Poverty Reduction, is responsible for implementing social safety-net programmes designed to protect and empower vulnerable populations across Nigeria.

In her remarks while presenting the award, the National Coordinator of NASSCO, Dr. Funmi Olotu, stated that the honour reflects Governor Lawal’s dedication to improving social protection systems and promoting inclusive governance in Zamfara State.

Accepting the award, Governor Lawal commended the Federal Government, the World Bank, and other development partners for their continued support of ongoing reforms to strengthen Nigeria’s social protection architecture.

“This engagement is timely and strategic,” Governor Lawal said. “In Nigeria, especially in conflict-affected states like Zamfara, social protection has shifted from welfare to a vital tool for governance, security, poverty reduction, and community resilience.”

He noted that insecurity in Zamfara has led to displacement, disruption of livelihoods, food insecurity, and significant economic hardship, which disproportionately affects women, children, displaced persons, people with disabilities, and rural communities.

The Governor stressed the need for better coordination, transparency, data-driven targeting, and stronger collaboration among federal, state, and local governments to ensure resources reach those who need them most.

He also praised the expansion of the National Social Register and the integration of the National Identification Number (NIN), describing these as steps that improve transparency, efficiency, and accountability in service delivery.

Governor Lawal further called for inclusive development that goes beyond cash transfers to include livelihood support, skills training, agriculture, healthcare, education, financial inclusion, and community resilience. “This will help vulnerable populations move from dependency to sustainable participation,” he said.

Continue Reading

Trending

Mega Awareness 2023