MTN Nigeria's MoMo PSB reportedly lost $53 million to hackers. It may not get all of it back.
MoMo Payment Service Bank, the new financial services subsidiary of telecoms company MTN Nigeria, suffered a breach in the last week of May just days after launch, reportedly losing 22 billion naira ($53 million.)
Nigerian payment service banks operate with a mobile money license reserved for non-bank institutions. They offer deposits and withdrawals, and cross-border remittances. They can issue debit cards, but not credit cards and a fourth of their operations must be in rural areas where most financially-excluded Nigerians live. But according to news reports this week, MoMo PSB lost $53 million following 700,000 unauthorized transfers to about 8,000 accounts in 18 Nigerian commercial banks.
In a statement (pdf), the company said it stopped the transfers after noticing them on May 25, leading to a temporary service suspension that was eased within 24 hours.
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