How Ethiopia’s Biggest Bank Almost Lost $14 Million Due to Glitch

Ethiopia’s biggest bank, the Commercial Bank of Ethiopia, has announced it has successfully recouped nearly 80% of the funds lost during a recent system glitch. The incident, which allowed customers to withdraw or digitally transfer more money than they had in their accounts, led to the loss of approximately $14 million.

Abe Sano, the president of the bank, revealed to reporters that the transactions varied in value from as little as 9 cents to as much as $5,350. Initially, the bank feared a loss of $40 million. However, prompt action and the cooperation of the public have mitigated the situation. Nearly 15,000 individuals have voluntarily returned the funds that were taken unlawfully. Nonetheless, 567 people have yet to return the money that does not belong to them. In a bold move, the bank has publicised their names and account details online, hoping to pressure them into returning the funds.

“The total amount remaining is not significant for the bank, but if this money is not fully recouped, it sends the wrong message,” Abe stated. The glitch became widely known on March 16, with many university students among those who withdrew the funds. Several universities have since urged their students to return the money.

Contrary to concerns, the glitch was not a result of a cyberattack but was caused by a routine system update and inspection, as confirmed by Ethiopia’s central bank. Established in 1963, the Commercial Bank of Ethiopia serves as a pillar in the country’s financial sector, boasting 40 million customers. This incident underscores the importance of robust measures and the need for vigilance in the digital age.