Flutterwave Denies Hack Despite Reports of Missing Funds
Flutterwave, Africa’s largest startup by private valuation, has denied being hacked despite reports of missing funds. According to local tech publication Techpoint Africa, over ₦2.9 billion (~$4.2 million) was missing from Flutterwave’s accounts due to unknown actors transferring the funds across 28 accounts in 63 transactions in early February. Flutterwave has filed a motion and seeks to freeze accounts across 27 financial institutions that interacted with the missing funds. Police investigations are ongoing, and the cause and method of the attack remain unclear. However, one postulation from online commentary is that the hack might have been socially engineered, meaning that merchants’ keys were compromised, allowing the hackers to access the monies in their Flutterwave accounts.
Flutterwave has released a statement denying the hack and reassuring customers that their personal and financial information is of the utmost importance. The company monitors transactions through its transaction monitoring systems and 24-hour fraud desk and reviews any suspicious activity. During a routine check of its transaction monitoring system, Flutterwave identified an unusual trend of transactions on some users’ profiles. The company immediately launched a review, which revealed that some users who had not activated some of its recommended security settings might have been susceptible. Flutterwave confirms that no user lost any funds, and its security measures were able to address the issue before any harm could be done to its users.
Flutterwave invests 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. The company wants its users to continue to trust it and feel secure in using Flutterwave for their business needs. Flutterwave’s commitment is to enable business growth while keeping financial information safe and secure.
In conclusion, Flutterwave denies being hacked despite reports of missing funds. The company reassures customers that their personal and financial information is of the utmost importance and invests heavily in security initiatives to keep its ecosystem safe and secure. Flutterwave’s commitment is to enable business growth while keeping financial information safe and secure.
On the 17th of May 2021, reports emerged that millions of dollars had vanished from Flutterwave after a security breach. Flutterwave is a Nigerian fintech firm that provides payment services to over 290,000 businesses across Africa, including Uber, Wakanow, and Axa Mansard.
According to sources, the breach was caused by weak security protocols that allowed hackers to exploit loopholes in Flutterwave’s system. The hackers allegedly gained access to sensitive information such as customers’ identities, bank account details, and transaction records. This information was then used to steal millions of dollars from unsuspecting customers.
The news of the breach has caused panic among Flutterwave’s customers who are now wondering if their money is safe. The company has assured its customers that it is taking the necessary steps to address the breach and that their money is safe. Flutterwave has also committed to working with the relevant authorities to investigate the breach and bring the perpetrators to justice.
However, it is important to note that this is not the first time a fintech company has suffered a security breach. In 2019, Nigerian fintech company, Kudi, suffered a similar breach, and millions of customers’ transaction records were exposed. In 2020, a Kenyan fintech company, M-Pesa, also suffered a security breach that resulted in the loss of millions of dollars.
The Flutterwave breach highlights the importance of cybersecurity in the fintech industry. Fintech companies must invest in robust security protocols to protect their customers’ sensitive information. They should also conduct regular security audits and simulations to identify and address vulnerabilities in their systems.
As customers, we must also take steps to protect ourselves from cyber threats. We should use strong passwords, enable two-factor authentication, and only transact with trusted companies. We should also regularly check our bank statements and report any suspicious activity to our banks immediately.
In conclusion, the Flutterwave security breach is a wake-up call for the fintech industry and its customers. It highlights the need to prioritize cybersecurity to ensure that our money and sensitive information are safe. As the industry continues to grow, we must all work together to mitigate the risks of cyber threats and protect our financial well-being.
