N622m Fraud: Court Remands Two Men for Hacking Interswitch Server

Two middle-age men, Daniel Kelechi Ikeoha and Sylvester Ebeta have been remanded in the Ikoyi Facility of the Nigerian Correctional Services (NCoS) by a Federal High Court, Lagos, for allegedly defrauding Interswitch Nigeria Limited of the sum of N622 million.

Justice Yellim Bogoro who presided over the court, remanded both Daniel and Sylvester, after they pleaded not guilty to the charges of alleged conspiracy, hacking into the Interswitch’s server, and unlawful conversion/taking possession of proceeds of an unlawful acts.

The offences which contravened Sections 27(1)(b) and 14(1)of the Cyber Crimes (Prohibition, Prevention Etc.) Act, 2015 as Amended in 2024, read along with Section 14(1) of the same Act. 

The offence also contravened Section 18(2)(b)(d) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022. 

The two alleged hackers and others said to be at large, according to the Prosecutor, Barrister Justine Enang, a Chief Superintendent of Police (CSP) at the Legal Department of PSFU, Ikoyi, Lagos, had between January 2022 and October 12, 2023, conspired among themselves to commit illegal acts.

CSP Enang had told the court the the two Defendants and others at large, unlawfully suppressed the Interswitch Payment Gateway Merchants to interchange the system switch and caused multiple fraudulent transfers and withdrawals of N622 million, from various bank accounts of other customers to their own accounts.

The Prosecutor had told the court that the Defendants wired the N622 million to their underlisted banks and accounts: Kuda Microfinance Bank, Account No. 2012900334; UBA Plc, Account No. 2259918436; Zenith Bank Plc, Account No. 225135546; Eco Bank Nigeria Limited, Account Nos. 4360057510 and 4360057503; GTB Plc Account Nos. 0025473624, 0560512839; FCMB, Account Nos. 7358218027, 7358218010; Moniepoint Microfinance Bank, Account No. 5397559320; GTB Plc, Account No. 0167915358; Stalonvee Concept, Stalonvee Concept, Account Nos. 6397559320, 5397602542 and Zenith Bank Plc, Account No. 240753383.

Meanwhile, at the arraignment of the Defendants on Friday, their Lawyer, N. S. Hart, informed the court that she has two applications before the court. 

She told the court that the first application is challenging the court’s jurisdiction in entertaining the charges against her clients, because her clients have been charged before a Magistrate Court. Hence, the charges against them before the court was an abuse of court process.

Hart also told the court that, the second application is the bail application of her clients.

In response, the Prosecutor told the court that the charge before the Magistrate Court has been withdrawn.

And, upon taking arguments on the bail application, Justice Bogoro adjourned ruling till November 14, while ordering that the two Defendants be remanded in the custody of the Nigerian Correctional Services (NCoS).