Sterling Bank staff, fraudsters arraigned over N1.2bn cyber theft

Sterling Bank Limited and its holding company, Sterling Financial Holdings Company, are embroiled in a scandal involving the theft of ₦1.2 billion from depositors’ accounts.

The funds were reportedly stolen by a network of fraudsters in collusion with some bank staff, leading to a high-profile court case.

The suspects, identified as Victor Nwabueze (50), Favour Odey (22), Adekunle Daniel (34), and Yetunde Oguntade (28), along with an accomplice, Akachukwu Alagbogu, were arraigned before Justice Ambrose Lewis-Alagoa at the Federal High Court in Lagos.

Prosecutor Barrister Justine Enang revealed that the fraud occurred between November 3 and 4, 2024, when the suspects allegedly breached Sterling Bank’s sensitive systems.

Using compromised data such as IP addresses and mobile equipment identities, they transferred ₦1,257,536,572.50 into fraudulent accounts.

The suspects faced a three-count charge of conspiracy, hacking, and money laundering under the Cybercrimes Act and the Money Laundering Prohibition Act.

The charge sheet detailed the fraudulent acts, highlighting that the defendants, in collaboration with internal staff, exploited the bank’s platform to steal depositors’ funds. It stated:

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Conspiracy and Internet Fraud: The defendants conspired to commit internet fraud by falsely manipulating banking systems, causing financial losses to Sterling Bank and its customers.

Unauthorized System Breach: They knowingly accessed and suppressed parts of the bank’s systems, transferring funds to fraudulent accounts.

Money Laundering: The stolen funds were converted, transferred, or retained by the defendants, who reasonably ought to have known they were proceeds of unlawful activities.

These acts contravened sections 27(1)(b) and 14(1) of the Cyber Crimes Act (2015, amended in 2024) and sections 18(2)(b) & (d) of the Money Laundering (Prevention and Prohibition) Act, 2022.

The defendants pleaded not guilty to all charges. However, the prosecution opposed their bail applications, citing their potential to flee.

After deliberation, Justice Lewis-Alagoa granted bail at ₦50 million each, with a condition that one surety must own landed property within the court’s jurisdiction. The suspects were remanded in custody until they meet the bail terms.

The court has adjourned the case to March 13, 2025, for the commencement of trial.

This case highlights the growing risks of cybercrime within Nigeria’s banking sector. With internal collusion amplifying vulnerabilities, financial institutions are urged to enhance their cybersecurity frameworks to safeguard customer funds.

Sterling Bank has yet to issue an official statement on the incident but is expected to cooperate fully with investigators to ensure justice is served.