Glitch at Commercial Bank of Ethiopia Allows Customers to Withdraw Millions
Ethiopia’s largest commercial bank is facing a daunting task as it endeavors to recover substantial amounts of money withdrawn by customers following a “systems glitch” incident.
Early last Saturday, customers of the Commercial Bank of Ethiopia (CBE) made a startling discovery – they were able to withdraw more cash than their account balances permitted. Reports from local media indicated that over $40 million (£31 million) was either withdrawn or transferred to accounts in other banks.
It took several hours for the bank to halt these transactions, with bank president Abe Sano revealing that much of the money was withdrawn by students from the state-owned CBE. News of the glitch rapidly spread through university campuses, primarily via messaging apps and phone calls.
At various campus ATMs, long queues formed as students rushed to withdraw money. A student from Jimma University Institute of Technology described how withdrawals continued until police intervention ceased the activity. Similarly, a student from Dilla University reported that many of his peers withdrew funds from CBE accounts during the early hours of the morning.
Established 82 years ago, CBE boasts more than 38 million account holders. In response to the incident, Ethiopia’s central bank issued a statement attributing the glitch to maintenance and inspection activities. However, the focus of the statement was on the disrupted service after CBE froze transactions, omitting any mention of the withdrawn funds.
While Mr. Sano did not specify the exact amount withdrawn, he reassured customers that the bank hadn’t fallen victim to a cyber-attack and that their personal accounts remained secure. Nevertheless, at least three universities issued statements urging students to return any mistakenly withdrawn funds to CBE. Those complying would not face criminal charges, according to Mr. Sano.
The success of the bank’s efforts to recover the funds remains uncertain. Despite police presence on campuses, reports suggest that many students have yet to return the money. However, there are instances where bank employees are collecting voluntarily returned funds, as reported by an official from Dilla University.
In summary, the “systems glitch” at CBE led to an unprecedented withdrawal of funds, primarily by students, prompting efforts to recover the misplaced money and restore normalcy to the bank’s operations.
