Ethiopia’s largest bank, the Commercial Bank of Ethiopia, is grappling with the aftermath of a technical malfunction that enabled customers to withdraw funds exceeding their account balances.
Reports from local media indicate losses exceeding 2.4 billion Ethiopian birr, equivalent to approximately £32 million.
Although the bank’s CEO, Abe Sano, refrained from disclosing the exact amount withdrawn, he revealed that roughly half a million transactions occurred during the glitch. Sano attributed the dissemination of news regarding the glitch to university students who accessed and withdrew substantial sums of money.
Notably, the bank has opted against pursuing legal action against the students involved in the unauthorised withdrawals. Instead, it is collaborating with law enforcement to recuperate the missing funds.
Contrary to initial speculation of a cyberattack, Ethiopia’s central bank clarified that the issue stemmed from a routine system update and inspection.
Following the discovery of the glitch, lengthy queues formed at ATMs nationwide, prompting the temporary shutdown of the country’s banking system. During this period, customers experienced difficulties in accessing their funds.
Established in 1963, the Commercial Bank of Ethiopia boasts a customer base of approximately 40 million individuals.
[Image created via MidJourney]