Two arrested for allegedly capitalising on network glitch to steal N613m

The Police Special Fraud Unit (PSFU) in Lagos State has detained two individuals, Ikocha Daniel, 34, and Sylvester Ebete, 33, in connection with an alleged N613 million fraud.

In a statement released on Saturday, PSFU’s spokesperson, SP Eyitayo Johnson, confirmed the arrest of the suspects. They are accused of conspiracy, fraudulent conversion, and theft of N613,980,200 from a prominent Nigerian Financial Technology (FinTech) company.

According to Johnson, the fraudulent activities took place between January 19, 2022, and October 12, 2023, due to a system/network glitch. This glitch resulted in certain Payment Gateway Web Merchants receiving multiple credits for refunds initiated to cardholders.

These refunds were subsequently settled into the merchants’ accounts across various banks and then withdrawn or transferred by the merchants.

“Daniel (allegedly) unlawfully benefited and converted N402,980,200, while Ebete fraudulently converted/diverted N211,000,000,” Johnson stated.

He explained that the suspects exploited the glitch to make multiple withdrawals, accumulating the aforementioned sums, which they then distributed to themselves, other banks, friends, and relatives.

In an attempt to evade arrest, the suspects reportedly disabled their mobile phones and relocated from their known addresses. However, PSFU detectives eventually tracked and apprehended them.

Johnson added that the suspects have provided confessional statements admitting their involvement in the crime, and criminal charges have been filed against them by the unit’s legal section.

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