Nigerian billionaire Olugbenga Agboola’s Flutterwave denies losing $7.25 million in security breach

San Francisco and Lagos-based fintech giant Flutterwave, led by Nigerian tech billionaire Olugbenga Agboola, has denied recent media reports alleging it lost N11 billion ($7.25 million) to a security breach.

In a statement responding to the flurry of reports, Flutterwave confirmed that it detected suspicious activity on one of its customer platforms in April 2024. The company claims it proactively stopped any theft of customer funds.

As a security precaution, Flutterwave will notify some customers to migrate their accounts and is urging all customers to enable multifactor authentication, 3D security, and IP whitelisting.

Questions on client funds

This latest incident raises security concerns for the company, which processes payments in more than 30 currencies across 40 countries. Similar reports surfaced in March 2023, alleging hackers stole N2.9 billion ($6.3 million) from Flutterwave. The company swiftly refuted those claims, maintaining its commitment to client fund security.

Earlier this year, Flutterwave received a Nigerian court order to recover N19 billion ($12.5 million) lost in unauthorized Point-of-Sale (POS) transactions affecting approximately 6,000 accounts across 35 banks and financial institutions. This followed a months-long investigation into a technical glitch that facilitated the fraudulent transfers.

Flutterwave: Fintech powerhouse leading Africa’s payments charge

Founded in 2016 by Olugbenga Agboola, Flutterwave has become a frontrunner in Africa’s ongoing payments revolution. The company, headquartered in both San Francisco and Lagos, stands as a significant success story within the continent’s burgeoning fintech space.

In a banner year for expansion, 2023 saw Flutterwave enter the Rwandan and Egyptian markets. It also secured a strategic alliance with IndusInd Bank Ltd., a leading Indian financial services provider.

Additionally, the company pledged a $50-million investment in the Kenyan market, highlighting its commitment to securing an operating license there. These developments underscore Flutterwave’s twin objectives: revolutionizing Africa’s payments landscape and establishing a presence in international markets.

Flutterwave, Microsoft team up to empower African SMEs

Capping off a productive 2023, Flutterwave announced a strategic partnership with Microsoft, co-founded by American billionaires Bill Gates and Paul Allen. This initiative aims to empower at least 10 million small and medium-sized enterprises (SMEs) across Africa, with a specific focus on Nigeria.

The alliance leverages the power of the fintech sector to drive economic growth and enhance lives by fostering financial inclusion. This partnership builds upon a pre-existing technology agreement established between the two companies earlier in 2023.