Allegation of System Glitch Induced Multi-million Naira Fraud Rocks ADE BURAIMO’s Alpha Morgan Bank
The bank and the affected customers have taken the matter to court, jointly suing 19 financial institutions in an attempt to recover the allegedly stolen funds.
A total of N230,978,536 was allegedly stolen from the accounts of NEM Insurance Plc and Extension Publications Limited at Alpha Morgan Bank through unauthorized transfers to multiple accounts across 19 financial institutions during what the bank described as a system glitch.
According to multiple customers who shared their experiences on social platforms and consumer-complaint channels, the alleged incident involved unexpected debits and a prolonged lack of official communication from the institution. Some account holders reported that their attempts to seek clarification or restitution were met with silence or delayed responses, increasing frustration and fuelling speculation about internal lapses.
The suit, filed at the Federal High Court in Lagos, seeks urgent orders to block multiple bank accounts across the financial sector and recover the allegedly diverted funds.
According to an affidavit sworn to by Dayo Abe, a litigation officer at the law firm of Babafemi Akinsete & Co., the technical malfunction in Alpha Morgan Bank’s system was exploited by certain service-merchant agents operating as digital financial-services providers.
These agents, the affidavit states, “took advantage of the glitch and unlawfully initiated multiple transfers” from the customers’ accounts into accounts domiciled in the 19 financial institutions now listed as defendants.
Further investigation by Alpha Morgan Bank reportedly revealed that the total amount illegally moved from the accounts of NEM Insurance Plc and Extension Publications Limited was N230,978,536, spread across multiple bank accounts linked to several BVNs.
Following the bank’s complaint, the 19 financial institutions were said to have placed temporary post-no-debit restrictions on the suspicious accounts.
However, the plaintiffs warn that unless all accounts connected to the perpetrators’ BVNs—including accounts not yet identified—are frozen, the funds may be irretrievably lost.
The affidavit explains that the suspects had already begun transferring the money from the first-level beneficiary accounts into other banks to “continue to unlawfully dissipate the said funds.”
The plaintiffs argue that the bank and its affected customers have suffered “humongous fraud” resulting from the system glitch, and that failure to immediately block the linked accounts will cause “untoward hardship and dire financial loss” to both the bank and its shareholders.
They are therefore asking the Federal High Court to issue an order compelling the 19 banks to reverse and refund all “wrongfully, illegally, and illicitly debited” sums back into Alpha Morgan Bank’s settlement and collection account.
The court has not yet fixed a date for the hearing.
Several individuals affected by the incident claim they have been left without clear explanations regarding when the alleged “massive glitch” occurred, how the reported N230 million outflows happened, and what remediation steps the institution is taking.
A few customers described the experience as “distressing,” stating that they had received no direct updates other than automated acknowledgements.
While the complaints do not provide evidence of intentional wrongdoing, the situation has raised questions about internal controls, technical safeguards, and executive oversight under Ade Buraimo’s leadership. Industry analysts note that even unintentional system failures can severely impact customer confidence if not communicated promptly and transparently.
Financial-sector observers emphasize that regulatory guidelines require firms to promptly notify clients of significant service disruptions and to maintain strong protections against erroneous or unauthorized transactions.
