Sterling Bank Limited, along with its holding company Sterling Financial Holdings, is facing a significant financial fraud involving the theft of ₦1,257,536,572.80. The incident allegedly comes from a collaboration between some of the bank’s staff and external fraudsters who infiltrated the bank’s systems.
The key suspects in the case are Victor Nwabueze (50), Favour Odey (22), Adekunle Daniel (34), Akachukwu Alagbogu, and Yetunde Oguntade (28). They were arraigned by the Police Special Fraud Unit (PSFU) at the Federal High Court in Lagos where they face charges of conspiracy, hacking, and money laundering under the Cybercrimes (Prohibition, Prevention, Etc.) Act, 2015 and the Money Laundering (Prevention and Prohibition) Act, 2022.
The prosecutor, Barrister Justine Enang alleged that the suspects, working alongside internal staff, compromised the bank’s systems between November 3 and 4, 2024. Using sensitive data such as international mobile equipment identity numbers and IP addresses, they carried out unauthorized transfers into fraudulent accounts.
The defendants are charged under multiple sections of Nigeria’s cyber and financial crime laws. The key accusations include; conspiracy to commit internet fraud, hacking and unauthorized system access and money laundering.
The prosecution argued that these offenses violated sections of the amended Cybercrimes Act and Money Laundering Act, with severe penalties prescribed under Nigerian law.
The accused pleaded not guilty to the charges. However, the prosecution opposed their bail, citing the risk of flight. Despite this, Justice Ambrose Lewis-Allagoa granted bail at ₦50 million each, requiring a surety with landed property within the court’s jurisdiction. Until bail conditions are met, the defendants remain in custody. The case was adjourned to March 13, 2025, for trial while investigations are ongoing with authorities pursuing additional suspects believed to be at large.
This case highlights the growing threats faced by financial institutions from both internal and external actors. It underscores the critical need for robust cybersecurity measures and stringent internal controls to safeguard customer funds and protect banking systems from exploitation.
