Ethiopia’s most prominent commercial bank is trying to regain millions of dollars customers took out because of what the bank called a “systems glitch.”
There are reports that more than $40 million was taken out of or sent to other banks from the Commercial Bank of Ethiopia, owned by the government when customers learned they could receive more money than they had in their accounts.
The Unforeseen Glitch
The chaos began when ordinary transactions at CBE ATMs started yielding extraordinary results. Instead of the usual withdrawal limits, some customers could withdraw amounts far beyond what their account balances would typically allow. What should have been a routine visit to the ATM turned into a surprising windfall for those lucky—or perhaps unlucky—enough to be caught up in the glitch.
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Much of the money was withdrawn from state-owned CBE by students, bank president Abe Sano told journalists on Monday.
News of the glitch spread across universities primarily via messaging apps and phone calls.
Long lines formed at campus ATMs, with a student in western Ethiopia telling BBC Amharic people were withdrawing money until police officers arrived on campus to stop them.
The student, who attends Jimma University Institute of Technology, said he “did not believe it was true” when his friends told him at around 01:00 local time (22:00 GMT) that it was possible to withdraw large amounts from ATMs or transfer money using the bank’s app.
Another student at Dilla University in southern Ethiopia said some of his peers retrieved money from CBE between midnight and 02:00 local time.
More than 38 million people hold accounts at CBE, established 82 years ago.
It took several hours before the institution froze all its transactions. It’s not likely that a cyberattack caused the glitch.
There are reports that more than $40 million was taken out of or sent to other banks from the Commercial Bank of Ethiopia, owned by the government when customers learned they could receive more money than they had in their accounts.
Rapid Response and Repercussions
Following the discovery, CBE promptly fixed the issue. Customers withdrew large amounts of money during the problem, beyond their expectations. Concern and bewilderment followed reports that some consumers withdrew millions of Birr.
Following the malfunction, the bank and its customers faced issues. Customers debated handling the unexpected funds while CBE assessed the financial implications.
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Glitch investigations raise concerns about the bank’s system security and stability. Given the potential weaknesses that led to such a major blunder, the financial sector needs strong safeguards.
The incident temporarily made many consumers rich, but it also emphasised the necessity of financial system integrity. While CBE attempts to restore normalcy and client trust, this issue highlights the possible repercussions of technical failures in the financial industry.
Customers and officials await more information on the cause of the glitch and preventative measures. While waiting, the unexpected millions removed during those fateful hours will be discussed and speculated upon.
