Jacob Brown
Ethiopia’s most prominent commercial bank is running to recoup large sums of cash withdrawn by customers after a “systems glitch.”
Over the weekend, customers of the Commercial Bank of Ethiopia (CBE) were surprised to find they could withdraw more cash than they had in their accounts, leading to over $40 million being withdrawn or transferred to other banks.
Discovery of the Glitch
Customers discovered the glitch early on Saturday, allowing them to take out more money than they had in their accounts. The news quickly spread, primarily through messaging apps and phone calls, sparking a rush to ATMs across universities.
Response from CBE
It took several hours for CBE to freeze transactions and address the issue. Bank president Abe Sano revealed that much of the money was withdrawn by students, leading to long lines at campus ATMs.
Student Reactions
Students across various universities, including Jimma University Institute of Technology and Dilla University, reported withdrawing money during the early hours of Saturday. Many were initially skeptical but quickly took advantage of the situation.
Official Statement
Ethiopia’s central bank attributed the incident to a “glitch” during maintenance and inspection activities. However, the statement focused more on the interrupted service after CBE froze transactions and did not mention the money withdrawn by customers.
Reassurance from CBE
Despite the incident, Mr. Sano reassured customers that CBE was not subjected to a cyber-attack and that their personal accounts remained intact. While the exact amount withdrawn was not disclosed, Mr. Sano emphasized that the loss was minimal compared to the bank’s total assets.
Conclusion
The unexpected glitch at CBE led to a surge in withdrawals, primarily by students, causing disruptions across the country. While the incident raised concerns, CBE officials provided reassurance about the security of customer accounts and attributed the issue to a technical malfunction.
