Commercial Bank of Ethiopia (CBE) has announced the successful recovery of more than $10 million (Ksh 1,324,280,000) lost due to a technical glitch that allowed excess transactions.
The incident, which occurred on March 16, resulted in a flurry of unauthorized transactions, with initial reports estimating the total amount transacted to be as high as $40 million (Ksh 5,297,120,000)
According to Abe Sano, the head of CBE, over $14 million was withdrawn from ATMs or transferred to other accounts during the glitch.
Ethiopia CBE Glitch
The incident led to a frenzy of transactions, with more than $14 million being withdrawn or transferred, primarily by university students, according to Abe Sano.
However, through swift actions and diligent efforts, the bank has managed to retrieve more than three-quarters of the lost funds, totaling over $10 million.
The glitch, which caught the bank off guard, prompted swift action to mitigate its impact.
Customers discovered that they could withdraw amounts exceeding their account balances, leading to a surge in transactions.
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It took several hours for the bank to freeze transactions and contain the situation, but not before a significant sum had been withdrawn or transferred to other banks.
Customers Face Legal Consequences
In an interview with the BBC, Abe emphasized that customers who withdrew more money than was in their accounts cannot evade legal consequences.
“There is no way that they can escape because they are digital [transactions], and they are our customers. We know them. They are traceable and they are legally accountable for what they did,” he said.
The bank is determined to hold them accountable, stressing that digital transactions are traceable, and the individuals involved are legally identifiable.
Further CBE is adamant about taking legal action against those who fail to return the funds by the end of the week.
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The glitch, which occurred at Ethiopia’s largest commercial bank, sparked chaos as customers rushed to take advantage of the situation by withdrawing or transferring funds beyond their account balances.
It took several hours for CBE to freeze transactions and mitigate the impact of the technical malfunction.
Despite the challenges posed by the incident, CBE is working diligently to restore normalcy and ensure the integrity of its banking operations.
“Abe said the bank is working with the police to recoup the lost money. The bank will not press charges against students who took out cash that did not belong to them,” said Abe.
The technical malfunction not only disrupted CBE’s operations but also raised concerns about the security and reliability of digital banking systems.
