You check your bank account and discover that ₦500,000 has been transferred without your authorisation.
You immediately contact your bank, report the transaction and ask for your money to be returned.
Then the bank tells you:
“The transaction was successful.”
Or:
“You authorised the transaction.”
Or simply:
“Our investigation shows that the transaction was valid.”
What should you do next?
A bank’s refusal to reverse an unauthorised transaction does not necessarily mean that you have no further remedy. Nigerian bank customers have access to internal complaint mechanisms, regulatory escalation and, where appropriate, legal remedies.
The important thing is to act systematically and preserve your evidence.
First, Understand Why the Bank Refused the Reversal
Before deciding what to do next, obtain the bank’s position in writing.
The bank may argue that:
- The transaction was properly authenticated.
- Your PIN, password, OTP or other credentials were used.
- You disclosed your banking credentials.
- The transaction originated from your registered device.
- The transaction was authorised by you.
- The bank’s investigation did not establish a system failure.
- The recipient has already withdrawn or transferred the funds.
Do not rely solely on a verbal explanation from a customer-service representative.
Ask the bank to provide its response formally and retain it.
Does the Bank Have a Right to Reject Your Complaint?
A bank is entitled to investigate a disputed transaction and determine whether it is liable.
However, a customer also has a right to have a complaint properly considered.
The Central Bank of Nigeria states that bank customers have a right to a complaints-management system through which they can seek redress. Customers also have a right to be kept informed about the resolution process and the basis of the bank’s decision. Where a customer is dissatisfied, the CBN states that the customer has a right of review by the bank, the CBN or the courts.
Therefore, a bank’s rejection of your complaint is not necessarily the end of the matter.
What Should You Do After the Bank Rejects Your Complaint?
If the bank has refused to reverse the transaction, take the following steps.
1. Request the Bank’s Final Position in Writing
Ask the bank to provide a written explanation of why it rejected your complaint.
Your request should identify:
- The disputed transaction.
- The date and amount.
- The transaction reference.
- Your complaint reference number.
- The reason given for rejecting your complaint.
- The action you want the bank to take.
Keep a copy of the correspondence.
2. Ask for the Complaint Tracking Number
Make sure you have the bank’s complaint or tracking reference.
The CBN’s current complaints process requires customers to first lodge their complaint with the financial institution and obtain a complaint reference/tracking number.
This number becomes important if you later escalate the complaint.
3. Preserve All Evidence
Keep all documents and communications relating to the transaction.
These can include:
- Bank statements.
- Transaction alerts.
- SMS messages.
- Emails.
- Screenshots.
- Transaction references.
- The recipient’s account details.
- Your complaint to the bank.
- The bank’s response.
- Communications with the suspected fraudster.
- Police or other law-enforcement reports.
Do not delete or alter potentially relevant electronic evidence.
Can You Escalate the Complaint to the CBN?
Yes.
If the bank fails to resolve the complaint within the applicable period, you can escalate the matter to the Consumer Protection Department of the Central Bank of Nigeria.
The CBN’s official guidance states that customers should first complain to their financial institution. Where the complaint remains unresolved within the applicable timeline, the customer can escalate it to the CBN.
The CBN’s current complaints portal also requires the customer to first lodge the complaint with the financial institution and obtain a tracking number before using the escalation process.
How Long Should You Wait Before Escalating to the CBN?
This is an area where you should be careful about relying on outdated information.
Older CBN guidance refers to a two-week period for unresolved complaints, while more recent CBN materials refer to the timelines stipulated under the applicable Consumer Protection Regulations.
The safest approach is to lodge the complaint formally with the bank, obtain the tracking number and follow the current CBN escalation process applicable to your complaint.
Do not simply send a complaint to the CBN without first complaining to your bank.
What Should You Include in a CBN Complaint?
Your complaint should clearly explain:
- Your name and contact details.
- The name of the bank.
- The disputed transaction.
- The date and amount involved.
- Your account details, without disclosing your PIN or password.
- What happened.
- When you discovered the transaction.
- The complaint you made to the bank.
- The bank’s response.
- The resolution you are requesting.
- Supporting documents.
The CBN specifically advises complainants not to include sensitive credentials such as PINs and passwords in their complaint.
Can the CBN Order the Bank to Refund Your Money?
The CBN has a consumer-protection and complaints-resolution role in relation to financial institutions under its regulatory purview.
Its Consumer Protection Framework requires financial institutions to have customer compensation policies addressing categories including unauthorised or erroneous debits and financial loss resulting from staff negligence or fraudulent activities.
However, a CBN complaint should not be treated as an automatic guarantee that the customer will receive a refund.
The regulator will consider the complaint, the bank’s response and the available evidence.
Where the dispute involves issues that require judicial determination, court proceedings may become necessary.
What If the Bank Says You Authorised the Transaction?
This is one of the most important situations to address.
The bank may argue that the transaction was authorised because:
- An OTP was entered.
- The customer’s PIN was used.
- The transaction came from the customer’s device.
- The customer’s password was used.
- The transaction passed the bank’s authentication process.
But the existence of authentication does not necessarily answer every question concerning liability.
The circumstances in which the credentials were obtained and used, the security systems involved, the customer’s conduct and the bank’s own obligations can all be relevant.
For example, a customer may have been deceived through phishing, social engineering or another form of fraud.
The bank’s investigation should therefore be examined carefully rather than accepting a conclusion merely because an OTP or PIN was involved.
What If You Accidentally Gave the Fraudster Your OTP?
This can complicate the dispute.
If you voluntarily disclosed your OTP, PIN or password to another person, the bank is likely to rely on that fact when defending its position.
However, the circumstances in which the information was obtained remain relevant.
A customer should therefore report the incident honestly and provide the complete circumstances to the bank, regulator or lawyer handling the matter.
Do not fabricate evidence or claim that you did not disclose information when you actually did.
What If the Bank Says the Money Has Already Been Withdrawn?
The fact that the recipient has already withdrawn the money does not necessarily determine whether you have a legal remedy.
The circumstances of the transaction, the identity of the recipient, the evidence available and the conduct of the parties must be considered.
Where the recipient can be identified, further legal steps may be available depending on the facts.
Where there is a risk that identifiable funds or assets may be dissipated, urgent legal advice can also be important.
Can You Sue the Bank?
Potentially, yes.
Whether you have a viable claim against the bank depends on the facts and the applicable law.
The fact that a transaction was unauthorised from the customer’s perspective does not automatically establish that the bank is liable.
The court may need to consider matters such as:
- How the transaction was initiated.
- Whether the transaction was properly authenticated.
- Whether the customer’s credentials were compromised.
- Whether the customer disclosed security information.
- Whether the bank complied with applicable regulations and security obligations.
- Whether there was negligence.
- Whether the bank acted appropriately after receiving the fraud complaint.
A proper legal assessment should therefore be conducted before commencing proceedings.
Can You Sue the Person Who Received the Money?
Where the recipient can be identified and there is a proper legal basis for recovery, civil proceedings can be considered.
The appropriate claim will depend on the circumstances.
In some cases, the legal strategy may involve pursuing the recipient of the funds, the bank or other relevant parties.
The objective may include obtaining appropriate orders for recovery of the money or preservation of assets.
What If You Do Not Know Who Received the Money?
This is common in electronic-transfer fraud.
You may have only the recipient’s account number, account name or transaction reference.
That information can still be useful.
The appropriate legal and investigative steps can be considered to identify the relevant parties and trace the transaction.
A lawyer can advise on the procedure available in the circumstances of the particular case.
Should You Report the Fraud to the Police or EFCC?
Where the circumstances indicate suspected criminal fraud, you should make an appropriate report to law-enforcement authorities.
The CBN itself advises victims of suspected fraud to take immediate action, including contacting their financial institution and reporting the matter to relevant authorities.
The criminal investigation and civil recovery process are separate.
A criminal complaint does not automatically recover the money, and a civil claim does not replace the need to report suspected criminal conduct where appropriate.
Should You Hire a Lawyer?
Legal advice becomes particularly important where:
- The amount involved is substantial.
- The bank has formally rejected your complaint.
- The recipient has been identified.
- The bank’s explanation appears inconsistent with the evidence.
- The money has been transferred through several accounts.
- You need urgent court intervention.
- The bank refuses to provide a satisfactory explanation.
- You intend to commence proceedings.
A lawyer can examine the evidence and determine whether the appropriate next step is further correspondence, regulatory escalation, negotiation or litigation.
Do Not Wait Indefinitely
One of the biggest mistakes victims make is spending months repeatedly calling customer service without taking further action.
If the bank has rejected your complaint, obtain the decision in writing and determine the next appropriate step.
The CBN provides a formal escalation mechanism for unresolved complaints against financial institutions within its regulatory purview.
Where regulatory escalation is unsuccessful or the dispute requires judicial determination, legal proceedings can be considered.
What Should You Avoid Doing?
Do not threaten bank staff
Threatening employees will not improve your case.
Do not publish unverified accusations online
Avoid accusing a particular person of fraud publicly unless you have a proper legal basis for doing so.
Do not delete evidence
Preserve transaction records and communications.
Do not disclose your PIN or password
The CBN specifically warns customers not to include PINs and passwords in complaints.
Do not rely solely on verbal complaints
Make your complaint formally and keep the evidence.
Do not assume the bank’s first response is the final legal position
A customer-service response is not necessarily a definitive determination of legal liability.
A Practical Step-by-Step Approach
If your bank refuses to reverse an unauthorised transaction, the practical sequence is:
Step 1: Secure your account.
Step 2: Make a formal complaint to the bank.
Step 3: Obtain the complaint/tracking number.
Step 4: Request the bank’s position and reasons in writing.
Step 5: Preserve all evidence.
Step 6: Report suspected fraud to the appropriate authorities where necessary.
Step 7: Escalate the unresolved complaint through the applicable CBN complaints process.
Step 8: Obtain legal advice if the matter remains unresolved or substantial funds are involved.
Step 9: Consider appropriate civil proceedings where the facts support a claim.
How Lexforte Attorneys Can Help
Lexforte Attorneys advises individuals and businesses involved in banking disputes, financial fraud and recovery of funds.
Our services include:
- Disputes involving unauthorised bank transactions.
- Banking and financial disputes.
- Recovery of funds lost through fraud.
- Legal correspondence with banks and financial institutions.
- Regulatory complaints.
- Debt and money recovery.
- Civil litigation.
- Applications for appropriate court orders.
- Representation in recovery proceedings.
If your bank has refused to reverse an unauthorised transaction, we can review the circumstances and advise you on the appropriate legal and regulatory options.
Conclusion
A bank’s refusal to reverse an unauthorised transaction is not necessarily the end of the matter.
Start by obtaining the bank’s position in writing, preserving your evidence and ensuring that your complaint has been formally recorded.
If the bank fails to resolve the complaint, you can use the applicable CBN Consumer Protection escalation process. The CBN expressly provides a mechanism for customers to escalate unresolved complaints against regulated financial institutions.
Where regulatory intervention does not resolve the dispute, or where the circumstances require judicial intervention, you may need to consider legal proceedings against the appropriate parties.
The most important thing is to act promptly, preserve the evidence and obtain proper legal advice before deciding what to do next.
If your bank has refused to reverse an unauthorised transaction, contact Lexforte Attorneys for advice on your available recovery and legal options.