Commercial Bank of Ethiopia Works to Recover $40 Million After Technical Glitch

Ethiopia’s Commercial Bank is currently in the midst of a significant endeavour to reclaim over $40 million following a technical mishap that permitted customers to withdraw more funds than they possessed in their accounts.

The incident, which led to extensive queues at ATMs throughout Ethiopia, was first uncovered at the Commercial Bank of Ethiopia, as indicated by local media reports.

Reports suggest that the news of the glitch rapidly disseminated on social media platforms, primarily by university students who capitalized on the opportunity to withdraw substantial sums of money. Abe Sano, the bank’s CEO, acknowledged the involvement of students in the withdrawal surge.

While the exact amount withdrawn remains undisclosed, Abe disclosed to journalists that approximately half a million transactions occurred during the period of the glitch. A local newspaper report indicated that an estimated 2.4 billion Ethiopian birr ($42 million) was affected.

Ethiopia’s central bank attributed the glitch to a “routine system update and inspection” rather than a cyberattack, issuing a statement to clarify the situation.

In response to the malfunction, Ethiopia’s banking system underwent a temporary shutdown to rectify the issue, leading to a temporary suspension of cash withdrawals for customers.

Founded in 1963, the Commercial Bank of Ethiopia stands as the largest bank in the country, serving a vast customer base of 40 million individuals.

Abe Sano emphasized the bank’s collaboration with law enforcement authorities to recuperate the lost funds. Notably, he expressed the bank’s intention not to pursue legal action against students who withdrew funds beyond their account balances.

Efforts to obtain comments from a bank spokesperson were unsuccessful at the time of reporting.

The Commercial Bank of Ethiopia’s ongoing efforts to address the aftermath of the technical glitch highlight the challenges and complexities faced by financial institutions in managing and mitigating unforeseen disruptions in the digital age.