Ethiopia’s largest bank, the Commercial Bank of Ethiopia (CBE), has announced the recovery of nearly three-quarters of the $14 million lost during a recent technical glitch. The glitch, which occurred on March 16th, allowed customers to withdraw more money than they had in their accounts, resulting in widespread confusion and long queues at cash machines, particularly in university campuses.
According to Abe Sano, the head of CBE, approximately $10 million has been recovered so far, thanks to the cooperation of thousands of customers who voluntarily returned the excess cash. However, Mr. Sano cautioned that those who fail to return the money will face criminal charges, emphasizing the bank’s commitment to holding individuals accountable for their actions.
Notably, the majority of the funds withdrawn during the glitch were reportedly accessed by university students, raising concerns about the impact of the incident on Ethiopia’s educational institutions and the broader financial ecosystem. While the exact nature of the glitch has not been disclosed by the bank, CBE reassured customers that their personal accounts remained secure and unaffected by the incident.
Following the discovery of the glitch, several universities issued statements urging students to return any unauthorized funds they had withdrawn. Moreover, Mr. Abe reiterated the bank’s determination to pursue legal action against those involved in the unauthorized transactions, emphasizing the traceability of digital transactions and the accountability of customers.
Initial reports suggested that the total amount lost in the technical glitch exceeded $40 million, highlighting the scale of the incident and its implications for the banking sector in Ethiopia. Despite the challenges in tracing funds transferred to other banks, CBE remains committed to resolving the issue and restoring confidence among its customers.
With over 38 million account holders, CBE plays a pivotal role in Ethiopia’s financial landscape, having been established over eight decades ago. The recent glitch underscores the importance of robust cybersecurity measures and regulatory oversight in safeguarding the integrity of financial systems and protecting the interests of customers.
