Sterling Bank Plc is embroiled in a major scandal and facing demands for a criminal investigation after allegedly opening a bank account using a client’s stolen identity, bypassing critical security protocols, and failing to act despite being formally notified.
Lawyers representing Lagos resident Olalekan Adejumo (pseudonym) have issued a blistering legal ultimatum to the financial institution, demanding the immediate closure of an account fraudulently opened in their client’s name without his knowledge, consent, or presence.
The shocking breach, first uncovered by FIJ, occurred on July 9th. Adejumo received a notification email from Sterling Bank welcoming him as a new customer – an impossibility as he had never visited a Sterling branch, initiated an account opening, or been a customer. Alarmingly, he was then bombarded with eight separate email verification alerts for activity he never authorized.
** authorized.** A subsequent transaction deepened the mystery: an individual identified as Legbeti Anuoluwapo Valerie deposited and immediately withdrew N5,000 from the fraudulent account on the same day it was opened.
“Gross Negligence” and “Data Compromise” Alleged:
In a damning letter sent Monday, Adejumo’s lawyers accused Sterling Bank of catastrophic failures. They assert the bank utterly bypassed mandatory legal and security safeguards, including:
Know Your Customer (KYC) procedures
Bank Verification Number (BVN) validation)Bank Verification Number (BVN) validation and inclusion
National Identification Number (NIN) linkage
Verification of the provided telephone number and email address
“The account is still very much active. It has not been closed by the bank,” Adejumo stated bluntly to FIJ on Tuesday, confirming Sterling Bank’s inaction despite clear evidence of fraud originating from within its own systems.
Legal Ultimatum and Threat of Regulatory Onslaught:
The lawyers’ demands are uncompromising:
Immediate closure of the fraudulent account.
A comprehensive investigative report identifying the bank staff responsible.
Full disclosure of how all security protocols were circumvented.
Unmasking the identity of Legbeti Anuoluwapo Valerie.
Production of the fraudulent documents used to open the account.
A formal written apology.
A legal guarantee that no loans, overdrafts, or liabilities will be attached to Adejumo’s identity or BVN via this account.
The letter delivers a stark warning: Sterling Bank has five working days to comply substantively or face:
Formal petitions to the Central Bank of Nigeria (CBN), potential petitions to the Economic and Financial Crimes Commission (EFCC), and the Nigerian Data Protection Commission (NDPC).
Immediate legal proceedings for “gross negligence, data compromise, unlawful use of identity, and breach of statutory duty” under the Nigerian Data Protection Act and other laws.
Systemic Failure Exposed:
This incident exposes a potentially severe and dangerous vulnerability within Sterling Bank’s account opening processes.
The apparent ease with which multiple layers of mandatory identity verification and security were bypassed suggests a systemic failure, raising urgent questions about the bank’s internal controls and its ability to protect customers from identity theft and financial fraud facilitated by its own operations.
Sterling Bank has yet to publicly respond to the allegations or the legal demands. As the five-day deadline ticks down, the pressure mounts on the bank to explain how such a fundamental breach could occur and what steps it will take to prevent a recurrence, beyond simply closing an account that never should have existed.
The integrity of Nigeria’s banking security protocols, and public trust in Sterling Bank specifically, now hang in the balance.
