Fidelity Bank Denies Data Breach Allegations, Disputes N555.8 Million Fine Imposed by Nigerian Data Protection Commission

Fidelity Bank has strongly denied allegations of a data breach and has disputed the N555.8 million fine imposed by the Nigerian Data Protection Commission (NDPC). In a statement released on Wednesday by Meksley Nwagboh, the bank’s Divisional Head of Brand and Communications, Fidelity Bank asserted that it has consistently adhered to the highest ethical standards, ensuring full compliance with all applicable data protection laws.

The controversy began when the NDPC announced a substantial fine against the bank, accusing it of violating data privacy regulations. Vincent Olatunji, the National Commissioner of the NDPC, justified the penalty by stating that the bank’s “arrogance ultimately led us to impose the full penalty.”

Responding to the fine, Fidelity Bank clarified that the situation stemmed from an online account opening request that was never fully operational due to incomplete documentation. The bank explained that after receiving the request, it immediately blocked and later closed the account when the necessary documents were not provided.

The bank detailed that it first became aware of the issue on April 30, 2023, when it received a notice of investigation from the NDPC. The investigation was prompted by a complaint from an individual whose details were allegedly used to open an account without their consent. Fidelity Bank emphasized that it conducted an internal investigation and found that the account was never activated due to the absence of required documentation such as a passport photograph and Bank Verification Number (BVN).

Fidelity Bank further noted that it had placed the account on a “Post No Debit” status while awaiting the completion of the account opening process, which ultimately never occurred. The account was subsequently closed after 30 days.

Despite the bank’s compliance with data protection protocols and its efforts to clarify the situation, the NDPC proceeded with imposing the fine. Fidelity Bank highlighted that it engaged in multiple rounds of discussions with the Commission to resolve the matter but was ultimately informed of the fine’s imposition.

Initially, the NDPC demanded a “remedial fee” of N250 million on December 5, 2023. However, after further engagement, the Commission increased the penalty to N555.8 million, prompting the bank to continue disputing the claim while seeking a resolution.

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