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Flutterwave Secures Court Order to Reclaim $24 Million Lost in Unauthorized POS Transactions

Flutterwave will be recovering $24 million lost to unauthorized POS transactions, court ordered.
Flutterwave

African fintech giant Flutterwave has obtained a court order authorizing the recovery of $24 million lost through unauthorized Point-of-Sale (POS) transactions on its platform.

The High Court ruling, issued on February 1st, empowers Flutterwave to contact impacted accounts across 35 banks and financial institutions to recoup the erroneously transferred funds.

The unauthorized transactions reportedly stemmed from "improper transfers" involving POS merchants.

While details remain limited, the incident highlights potential vulnerabilities within the fintech ecosystem and raises concerns about data security and transaction authorization protocols.

Flutterwave is Africa's most valuable startup, boasting a valuation of over $1 billion. The company processes billions of dollars in payments annually across the continent, offering various financial services to businesses and individuals.

Reacting to the development, Flutterwave's spokesperson emphasized the company's commitment to safeguarding user funds and upholding robust security measures. They stated, "We are actively working with impacted individuals and financial institutions to recover the lost funds swiftly and effectively. We prioritize user security and are taking decisive steps to address this issue and prevent similar incidents in the future."

Industry experts anticipate further details to emerge regarding the nature of the security breach and the specific measures Flutterwave is implementing to strengthen its platform.

This incident serves as a stark reminder for fintech companies to prioritize robust security protocols and transparent communication during such situations.

The development comes amid increasing scrutiny of fintech platforms in Africa, where the sector is experiencing rapid growth. Regulators and stakeholders are calling for stricter regulations and enhanced security measures to ensure consumer protection and financial stability.

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About the Author

With five years experience in Media, Temmy Samuel's become a modern journalist, delivering impressive reporting about tech, finance, business and science around the world. More About Temmy

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