Joweria Nakku, a resident of Kyebando, has sued Stanbic Bank Uganda Limited for allegedly failing to protect her savings account, leading to the fraudulent withdrawal of Shs 68 million.
According to documents in the Commercial Division of the High Court of Uganda, Nakku claims that between February 7 and 8 2023, unauthorized transactions totaling Shs 68 million were made from her account via the Flexi Pay platform, a service she had never registered for.
The transactions were conducted using four unknown Airtel lines.
Nakku’s lawyers argue that the bank’s negligence allowed fraudsters to access her account undetected, conducting 28 transactions within 24 hours, exceeding her account’s transaction limit.
They claim that the bank failed to exercise reasonable care to detect and prevent the fraud, despite the suspicious nature of the transactions.
Nakku questions the effectiveness of Stanbic Bank’s authentication protocols and transaction monitoring, particularly their Flexi Pay system, noting that failure to protect her account is a breach of duty, rendering them liable for the losses she incurred.
However, Nakku rejected this offer, saying it did not adequately compensate her for the losses she incurred.
Her legal team argues that the bank’s failure to protect her account constitutes a breach of duty, rendering them liable for the full amount fraudulently withdrawn.
The Commercial Court is set to hear the case on June, 24, 2024 at 9am.
https://www.ugbulletin.co.ug/woman-sues-stanbic-bank-after-losing-shs68m-in-flexi-pay-fraud/
