Description
This case outlines a complex financial identity theft scheme where a third party used the Claimant’s personal data to open an unauthorized account with Stanbic IBTC Bank, secure a COVID-19 credit loan from NIRSAL Microfinance Bank, and subsequently trigger an automated Global Standing Instruction (GSI) debit from the Claimant’s valid savings account at Access Bank.
In a comprehensive ruling, Justice I.T. Cocodia entered judgment in favor of the Claimant, detailing the legal obligations of financial institutions under the Nigeria Data Protection Act (NDPA) 2023:
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Judicial Notice of Statutes: Enforced that the NDPA 2023 and CBN Guidelines are public statutes that courts must judicially notice without explicit tendering as exhibits.
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Affirmative Duty of Care: Ruled that banks owe a fiduciary duty of utmost diligence to the public regarding personal data; allowing a third party to open an account in another person’s name without verifiable consent constitutes a severe data breach.
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GSI Accountability: Decreed that a recipient bank cannot escape liability for unauthorized debits by claiming a GSI order is “automatic.” Financial institutions maintain a legal duty to verify the legitimacy of a GSI mandate before processing customer fund deductions.
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Remedies: Ordered the immediate closure and deletion of the fraudulent account, full refund of the debited sums, and millions in general damages for professional negligence.
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