Customers Exploit Commercial Bank of Ethiopia’s ‘Systems Glitch’, Withdrawing and Transferring Over $40 Million

Customers of the Commercial Bank of Ethiopia have taken advantage of a reported “system glitch” to withdraw funds exceeding their account balances, resulting in a withdrawal and transfer total surpassing $40 million (£31m).

Reports indicate that the unprecedented activity occurred before the bank could intervene, with funds being either withdrawn or transferred to external accounts. The bank’s president, Abe Sano, disclosed during a press conference in Addis Ababa that the majority of the transactions were initiated by university students, propelled by the rapid dissemination of news regarding the glitch through messaging apps and phone calls.

While the exact magnitude of the financial loss remains unconfirmed, Sano acknowledged over 490,000 unauthorized transactions, categorizing them as “unhealthy and illegal.” Despite the substantial sum involved, he reassured customers about the security of their funds, asserting that the bank’s cyber defenses remained intact despite attempted cyber attacks.

The incident, which occurred during routine maintenance and inspection activities aimed at enhancing the banking system, was attributed to a “missing code.” Consequently, the bank suspended its services to prevent further financial hemorrhage.

Sano announced the commencement of an investigation into the matter and emphasized the bank’s cooperation with relevant authorities, particularly in identifying customers responsible for high-value transactions. He urged individuals who inadvertently received excess funds to return them, assuring them of immunity from criminal prosecution.

Efforts are underway to recover the substantial sum withdrawn during the glitch. Eyewitnesses reported scenes of long queues at campus ATMs in Western Ethiopia, with individuals hastily withdrawing funds before police intervention.

With a clientele base exceeding 38 million, the Commercial Bank of Ethiopia faces the arduous task of restoring normalcy following the unprecedented system failure.