Society Gists

In a shocking development that has rocked Nigeria’s financial sector, fraudsters have hacked Union Bank’s core banking system, siphoning a staggering ₦9.3 billion from customer accounts. The breach, which occurred on March 23, 2025, affected multiple accounts across 53 financial institutions, revealing the alarming vulnerabilities in the country’s banking infrastructure.

Union Bank, under the leadership of MD/CEO Yetunde Oni, has confirmed the incident, attributing the massive heist to a system glitch that was exploited by cybercriminals.

According to Oluwasegun Falola, Head of E-Fraud Investigations at Union Bank, the fraudulent transactions were not a single massive drain but rather occurred in “trickles,” making them harder to detect. The funds have reportedly continued to move across various beneficiary accounts, complicating recovery efforts.

Court documents reveal that the bank has filed a lawsuit (FHC/L/CS/629/2025) at the Federal High Court in Lagos, seeking a preservative order to freeze the accounts linked to the fraud and recover the stolen funds. The matter was brought before Justice Deinde Dipeolu, who granted an ex parte motion in favour of the bank to prevent further dissipation of the illicit proceeds.

In court, A. Adedoyin-Adeniyi, counsel to Union Bank, stated that “funds are still being moved,” indicating that the breach is ongoing, and possibly orchestrated by a sophisticated syndicate with deep knowledge of financial systems.

This disturbing revelation comes 15 months after the Central Bank of Nigeria (CBN) dissolved the board of Union Bank over governance irregularities and appointed a new management team to restore stability and integrity to the institution.

Industry analysts are now raising serious concerns about the security of Nigeria’s banking ecosystem, warning that outdated IT infrastructure and weak internal controls could continue to expose financial institutions to devastating cyberattacks.

“The Union Bank breach is a wake-up call,” said one financial analyst, speaking on condition of anonymity. “It’s a clear indication that regulatory bodies and financial institutions must urgently invest in modern cybersecurity systems and strengthen internal audit controls to safeguard customer funds.”

As of press time, Union Bank has not issued an official public statement regarding the extent of customer impact or specific steps being taken beyond legal recourse.

This incident underscores the growing sophistication of cyber fraud in Nigeria, and the urgent need for systemic reforms across the digital banking landscape.

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