A technical glitch over the weekend plunged Ethiopia’s largest bank, the state-owned Commercial Bank of Ethiopia (CBE), into chaos as customers exploited the error to withdraw millions of dollars beyond their account balances.
Reports indicate that over $40 million was withdrawn or transferred before transactions were halted, triggering widespread concerns and disruptions.
Unexpected Windfall Prompts Withdrawals
Following the glitch, customers discovered that they could withdraw unlimited funds, leading to a surge in withdrawals and transfers.
The bank’s president, Abie Sano, revealed that a significant portion of the withdrawn cash was attributed to students, with reports of long queues forming at campus ATMs as word of the glitch spread.
In response to the unprecedented situation, several universities have urged students to return any funds withdrawn erroneously.
President Sano assured the public during a press conference that individuals returning the money voluntarily would not face criminal prosecution, emphasizing the importance of rectifying the situation.
Bank’s Response and Service Restoration
The CBE acknowledged the service interruption but denied allegations of a cyberattack. In a statement, the bank clarified that the disruption was due to system security checks and assured customers that ATM services were fully operational following the incident.
Ethiopia’s central bank echoed similar sentiments, emphasizing that the interruption posed no threat to the stability of the financial system.
The incident has drawn attention to the robustness of Ethiopia’s financial sector oversight, prompting authorities to reassess security measures and protocols.
Despite the disruptive nature of the glitch, efforts are underway to restore confidence and prevent similar incidents in the future.
