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Flutterwave Faces ₦21 Billion Financial Glitch: What Happened?

Flutterwave, one of Africa’s leading fintech companies, has recently been caught in a significant financial glitch that led to losses exceeding ₦21 billion.

This issue resulted from an operational error within Nigeria’s payment system, NIBSS, which worsened an already problematic situation for the company.

Background of the ₦21 Billion Glitch

The problem arose when NIBSS accidentally altered Flutterwave’s daily transaction limit from the standard ₦7 billion to ₦21 billion. This change was made to accommodate a request but was never reverted back to its original setting.

Over the span of three months, this oversight went unnoticed, leading to massive financial exposure.

The failure to adjust the cap back in time resulted in Flutterwave processing more transactions than it was authorized to handle.

Repeated Incidents of Security Breaches

This glitch is just one in a series of issues Flutterwave has faced recently. In April 2024, the company experienced a security breach, resulting in a ₦11 billion loss.

The breach was well-coordinated, with perpetrators transferring funds across multiple accounts in a closed-loop system, making it difficult to trace.

Other past incidents, such as the unauthorized POS transactions in 2023, led Flutterwave to seek court orders to recover lost funds. These repeated challenges have raised concerns about the security of Nigeria’s fintech industry and the measures being taken to protect users’ financial data.

Moving Forward

Although the ₦21 billion glitch stemmed from a technical error by NIBSS, it highlights the importance of robust internal monitoring systems.

Flutterwave has vowed to enhance its security protocols to prevent similar occurrences, further emphasizing the need for heightened vigilance in the ever-expanding digital finance landscape.

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