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 $53 million. News reports about the breach cited a court filing that shows MoMo PSB requesting each of the 18 banks to explain how much of the $53 million they received in their customers’ accounts. While conceding that some customers of those banks may have already withdrawn proceeds of the breach, MoMo PSB wants the banks to return whatever remains of the transfers. With its lawsuit, MoMo PSB has put the banks on the hot seat to remedy fraud carried out by yet to be identified hackers. But the episode suggests the new bank was vulnerable from the beginning, raising questions about how well MTN prepared for the rollout.
SOURCE: QUARTZ AFRICA