By 
By Osasome, C.O
GTBank: Data Privacy Violations and Financial Improprieties
The Nigeria Data Protection Commission (NDPC) is investigating allegations brought against Guaranty Trust Bank (GTB) by a group known as GIC. The group claims that GTB engaged in several unethical practices, including breaches of data privacy, identity theft, foreign exchange fraud, and falsifying its 2024 half-year financial statement.
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At a recent media event, GIC accused GTB of opening accounts without customer consent—an act they allege constitutes data privacy violations and identity theft, potentially exposing innocent account holders to fraud. The group also claimed that these practices were aimed at inflating GTB’s customer base to enhance its ranking in terms of size and profitability.
GTBank Dismisses Allegations as False News
In response to the accusations, GTB issued a statement rejecting the claims as “false news.” The bank emphasised that it has taken legal action to address the issue. GTB stated, “We have taken swift and decisive legal actions against the various sources of these false reports and will continue to safeguard our reputation through the rule of law.”
GTB further described the allegations as a coordinated effort to tarnish the image of its business operations and management team, maintaining that the group’s claims were baseless.
Viral Video Sparks Controversy
The controversy gained traction when GIC released a viral video accusing GTB of unethical practices, particularly the unsolicited opening of bank accounts. The group alleged that GTB accessed customers’ private data, including telephone numbers, birth dates, and bank verification numbers (BVNs), without their consent. This, they claimed, was done to inflate the bank’s customer database artificially.
GIC also alleged that GTB has exposed over 10,000 unsuspecting customers to potential fraud, with many reportedly considering legal action against the bank.
Claims of Financial Misconduct and Regulatory Fines
In addition to privacy violations, GIC accused GTB of falsifying its financial performance, labeling the bank’s declared profit of N1.004 trillion as misleading. The group further alleged that GTB had been involved in round-tripping and other financial crimes, citing penalties imposed by the UK’s Financial Conduct Authority (FCA). According to GIC, GTB paid fines exceeding £10 million for financial breaches between 2008 and 2010.
The group also noted that the Bank of Ghana had withdrawn GTB Ghana’s foreign exchange license for a month in March 2024 due to fraudulent FX documentation and other infractions.
Regulators Step In
Despite GTB’s denial of the claims, both the Central Bank of Nigeria (CBN) and the NDPC are reportedly investigating the allegations. Financial and privacy regulators are closely scrutinizing the bank’s activities, with the NDPC focusing on the potential violation of Nigeria’s data privacy laws.
Reports dating back to 2019 have previously accused GTB of similar practices, including the unsolicited opening of accounts for customers, raising concerns about identity theft.
As the investigation unfolds, GTB remains under regulatory scrutiny, with potential implications for its reputation and operations in both Nigeria and abroad.
