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Tag: Flutterwave

  • Flutterwave acknowledges hack attempt, insists no fund was lost

    Flutterwave acknowledges hack attempt, insists no fund was lost

    Flutterwave, a Nigerian fintech company has debunked reports that its account was hacked and the sum of N2.9 billion diverted by fraudsters.

    In a statement issued on Sunday, the fintech company said it collaborates with other financial institutions and law enforcement agencies to keep its ecosystem safe and secure.

    “We want to reassure you that Flutterwave has not been hacked. As a financial institution, we monitor transactions through our transaction monitoring systems and 24-hour fraud desk and review any suspicious activity,” the statement said.

    Earlier, reports said that hackers made away with ₦2.9 billion (about $4.2 million) from the company’s accounts and that the funds were illegally transferred into several accounts with different Deposit Money Banks in Nigeria.

    The breach allegedly compelled the company to take an order to freeze the accounts of several customers in many banks, affecting over 300 customers, the reports said.

    However, Flutterwave in its statement acknowledged that there was an attempted attack on its platform, but insisted it was unsuccessful due to security measures put in place.

    The fintech company claimed that during a routine check of its transaction monitoring system, it identified an unusual trend of transactions on some users’ profiles and that its team acted accordingly.

    “We want to confirm that no user lost any funds, and we take pride in the fact that our security measures were able to address the issue before any harm could be done to our users.

    “At Flutterwave, we understand that our customers’ personal and financial information is of the utmost importance. We take this responsibility seriously and understand that any potential security breach can cause anxiety and concern among our customers,” the statement noted.

     

     

    Fluuterwave added that its team of experts promptly launched a review in line with our standard operating procedure, which revealed that some users who had not activated some of our recommended security settings might have been at risk.

    Some Nigerians on Twitter has complained that their banks froze their accounts based on an order received from Flutterwave.

    “My Kuda account was locked after I received a cash transfer from a customer (Access Bank) strictly on biz purpose. It’s been over a week now and Kuda Bank has refused to unlock my account even after submitting all requested documents,” Dickson Solomon, a Twitter user said.

    Another user Igwe Swift wrote: “My money and that of my godmom have been frozen for weeks now and each time I contacted Union Bank, they were specific it was because of a flutterwave hack but offered no real solution”.

    There is also a police statement purportedly sent on the behalf of Flutterwave by the company’s legal representatives posted on social media which clearly states that the company had suffered a breach by internet hackers.

    However, the tech company urged its customers to continue to trust its operations and feel secure in using Flutterwave for their business needs.

    “Our commitment to keeping our users’ financial information safe and secure is why we invest heavily in security initiatives such as periodic audits, certifications, and licences such as the PCI-DSS & ISO 27001. These are in line with global best practices in information security management.”

    This is coming at a time when citizens are cash-starved, Deposit Money Banks’ infrastructure for conducting financial transactions via the Internet has been overwhelmed and more people are relying on fintech companies to conduct their businesses.

  • Soko digital money lender, others barred from providing loan services

    Soko digital money lender, others barred from providing loan services

    The Federal Competition and Consumer Protection Commission (FCCPC) says it has ordered all financial technology companies (FinTechs) to stop providing payment or transaction services to digital money lenders under its investigation.

    Mr Babatunde Irukera, Executive Vice Chairman of the commission, disclosed this to newsmen on Thursday during an enforcement action on some of the digital money lenders in Lagos.

    He identified such FinTechs to include Flutterwave, Opay, Paystack and Monify which are operating payment systems and providing services to such digital lenders under its investigation or not operating with applicable regulatory approvals.

    Irukera said the commission also ordered telecommunication and technology companies which include Mobile Network Operators (MNOs) to stop providing server, hosting or other key services such as connectivity to such disclosed or known lenders.

    According to him, the Federal High Court empowers the commission to search and seize properties from premises of targets and subjects of investigation. This, he said made the commission to  enforce the law against a company, widely known as Soko Lending Ltd.

    “The information available to the commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names. It is covering a significant share of the digital or online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms and ethical loan repayment/recovery practices.

    “Prior to this operation, the commission had previously, on March 11, 2022 carried out a similar enforcement action with respect to multiple lenders; which action and continuing investigation has reduced previously high and escalating unethical, obnoxious and unscrupulously exploitative practices in the industry,” he said.

    He, however, said some of the lenders who had been subject of investigation had devised methods to leverage on technology and other financial services alternatives to circumvent account freezing and app suspension Orders.

    “With the operations today, the commission expects appreciable additional reduction in these unacceptable practices. The commission has also today entered further Orders that will disable or diminish violators’ ability to devise circumvention efforts or alternative mechanisms to circumvent the objective of the investigation and protection of citizens,” Irukera added.

    According to him, the Order requires permission to proceed in digital lending; it provides a limited moratorium period for existing businesses to comply in order to continue in digital lending.

    “The guidelines also mandate different service providers in the relevant ecosystem such as banks, access/download platforms or stores, technology providers and payment systems to require regulatory approval before providing services.

    “The commission expresses its gratitude to victims and citizens who have provided information or contributed to the investigation; and welcomes the continuing engagement that provides the relevant information or intelligence through the already established and publicised channels,” the FCCPC boss said.

  • Flutterwave beams hope to a new generation demanding more from their government – By Okoh Aihe

    Flutterwave beams hope to a new generation demanding more from their government – By Okoh Aihe

    By Okoh Aihe

    It was last week. I saw a copy of Thisday newspaper and my eyes were fixed on the picture of this generation of Nigerians – young men and women, and even boys and girls, who were rocking the investment world with their brilliance. The vivacity of that picture enchants. The rambunctious smile on their faces spoke more of a victory lap into the future.

    This is Flutterwave, a young company founded by young Nigerians, that is living the dream of a unicorn. It has just raised another $250m to expand its services across the nations of the world where it operates, especially Africa and the Middle East. The net worth is about $3bn for a company that is only six years old!

    You can only understand this feat when you extrapolate that Flutterwave is a year younger than this administration that has given the nation seven blighted years of pain and sorrow, with more people going into extreme hunger. Yet within this period a young organisation is raising funds from the international community to power its business and continue to retain investment interest and enthusiasm.

    My mind only goes back to a young fellow who visited the country at the advent of mobile telephony (GSM) in early 2000. It was a propitious moment for him as he refused to return abroad but instead choosing to set up a value added company in Nigeria. In no time this fellow had made so much money that returning abroad only became illusory. This young generation seeks something beyond the understanding of the dodos, custodians of ancient history who are afraid to admit that their time is far gone.

    A statement from the organisation called the feat “a validation of African talent, innovation and its young inspiring people. It is also a huge endorsement in the growth of the business, innovation and technology landscape in Africa.”

    Flutterwave’s latest backers, it was revealed, include some of the world’s most respected investors led by B Capital Group, and with participation from Alta Park Capital, Whale Rock Capital, Lux Capital, among others. Several existing investors who also participated in previous rounds also followed this round, including, Glynn Capital, Avenir Growth, Tiger Global, Green Visor Capital,and Salesforce Ventures.

    Flutterwave was founded in 2016 by three young Nigerians, namely: Iyinoluwa Aboyeji, Olugbenga Agboola and Adeleye Adekoya. With headquarters in San Francisco, California, and operations across some African countries – Nigeria, Kenya, Ghana, South Africa and some other seven countries in the continent, Flutterwave, according to its Wikipedia page, is a Nigerian fintech company that provides a payment infrastructure for global merchants and payment service providers across the continent.

    In March 2021, Flutterwave secured an investment of $170m, bringing the fintech company’s valuation to $1bn and achieving the enviable status of a unicorn. The $250m raised in series D funding has brought the company’s valuation to $3bn. For this young organisation, it seems the only way to go is up.

    The pertinent question therefore is what are the investors paying for? The organisation, as reported, served some details.

    “Since inception in 2016, the Flutterwave team has been on a mission to create endless possibilities for customers and businesses in Africa and the emerging markets. The Series D fundraise comes on the back of an impressive run of five years in which Flutterwave has processed over 200M transactions worth over $16 billion to date across 34 countries in Africa.

    “It also follows a year of rapid growth for the brand which now serves over 900,000 businesses across the globe. In 2021, Flutterwave launched a range of new products including Flutterwave Market for merchants to sell their goods via an online marketplace and, most recently, Send, a remittance service that empowers customers to seamlessly send money to recipients to and from Africa.”

    Flutterwave seems to be demonstrating a rare cluster of fintech creativity and the investing community is acknowledging their efforts by demonstrating that investment is blind to colour and race when the idea is right and the business plan solid.

    What therefore is the lesson in this? Simple. The future belongs to the young generation of this nation. The government should give them a little space in business and polity to express themselves and pull the stars down to the earth, if you permit that hyperbole.

    Even in the midst of this dreariness going on in Nigeria, there is hope rising. Flutterwave acknowledged the role of the Central Bank of Nigeria (CBN) which, through some new policies, has created some windows of opportunities for new ideas to sprout. There was the news only recently that some tech startups have raked nearly a billion dollars of investments into the country. The story can even be better if the nation responds in the affirmative through the provision of a more enabling environment for business.

    A primary party in this ecosystem is the Nigerian Communications Commission (NCC) whose responsibility it is to further animate the telecommunications sector to enable operators provide a superstructure that can support more complex but rewarding operations. It is easy to see that a nexus between the Commission and the Central Bank have created some glaring opportunities in the economy.

    But my first reaction here is that the NCC should be left alone to properly regulate the industry by a minister whose contumelious hold on the industry could instigate a crisis of unanticipated proportions. Those with their mouths wide open for political patronage are too selfish to contemplate the extensive damage the minister is inflicting on the industry.

    Having said that, I am optimistic that the coming of 5G will unleash a new wave of development and creativity, and also enhance the speed of transactions and the movement of big data.

    One would think the the NCC is acknowledging this role and ready for a rejig of operations when it’s chief executive, Prof Umar Garba Danbata, said in a statement last week, that “the Commission was irrevocably committed to the implementation of various regulatory initiatives and programmes, in collaboration with all stakeholders in the telecom ecosystem, towards bridging identified gaps and shortages in critical telecom infrastructure in the country.”

    That sounds very seminal but one would only pray that the Commission sticks to lithe regulation and damn every extraneous influence exerting debilitating pressure for parochial benefits.

  • Nigeria’s Flutterwave emerges only African company named “Pioneer” on TIME’s 2021 list

    Nigeria’s Flutterwave emerges only African company named “Pioneer” on TIME’s 2021 list

    Flutterwave, a Nigerian fintech firm, @theflutterwave, has been named a “Pioneer” on TIME’s 2021 list of the 100 Most Influential Companies in the World.
    In a list, which includes big wigs like Apple, Twitter and Stripe, the firm makes history as the only African company to make it this year.
    The list was divided into 5 categories; Pioneers, Leaders, Innovators, Disruptors and Titans.
    TIME reports that the fintech company was chosen for its efforts in recharging retailers after the pandemic slowed travel in Nigeria.
    Flutterwave co-founder and CEO, Olugbenga Agboola, explained that the digital payment provider launched a free promotion called “keeping the lights on.”
    Flutterwave co-founder and CEO, Olugbenga Agboola
    When pandemic lockdowns hit brick-and-mortar businesses in Africa, the digital-payment service was able to rapidly set up digital storefronts for 20,000 customers, throwing them a lifeline.
    Agboola, compares the infrastructure of digital transactions across nations and platforms, “you don’t want to think about it, you just want it to work.”
    Agboola called the free campaign “keeping the lights on.”
    It would be recalled that Flutterwave hit tech-unicorn status in March when it secured 170 million dollars in Series C funding from global investors, valuing the company at more than one billion dollars.
    TIME gathered nominations from its global network of editors and correspondents, as well as industry experts, to compile the list.
    Health care, entertainment, transportation, technology, and a variety of other industries are among those represented.
    The relevance, impact, innovation, leadership, ambition, and success of each company were then evaluated.
    Other companies listed under ‘Pioneers’ include Rihanna’s SAVAGE X FENTY, Bumble, Beyond Meat, Hello Sunshine, Strava, Klutch Sports Group.