Commercial Bank of Ethiopia (CBE) found itself amid a real-life drama when a ‘systems glitch’ allowed customers to withdraw millions more than what was in their accounts. The incident sparked chaos as word quickly spread, due to which people rushed to ATMs across the country. University students, in particular, took the opportunity by forming long queues at campus ATMs to withdraw hefty amounts. However, the police were quick to intervene and stopped the chaos.
Reports indicate that CBE staff initially failed to notice the glitch and by the time the problem was solved, close to $40 million (approximately Rs 300 Crore) was withdrawn from the bank. According to Euronews Ethiopia’s central bank claimed the incident happened during routine maintenance. On the other hand, CBE’s president, Abe Sano, clarified that it was not the result of a cyber-attack.
Customer accounts remained unaffected by the technical mishap. CBE’s CEO disclosed that the majority of the withdrawn funds belonged to students through their CBE accounts. He told the Fortune, “The problem is all internal. Now fully controlled.” In response to the incident, several universities have asked their students to return the funds immediately. However, the success of these efforts remains uncertain. Meanwhile, CBE has assured those who voluntarily return the money that they will not face criminal charges.
During the period, account holders were able to make unauthorized withdrawals and transfers. Reports indicated that approximately 66,000 customers conducted around 25,000 transactions, which led to nearly 2.4 billion Ethiopian Br (approximately Rs 300 Crore) withdrawals. However, CBE executives have not officially confirmed these claims. As a result of the glitch, CBE decided to temporarily freeze digital services across the country.
According to the CBE president, the glitch happened while they were improving their banking system and claimed it happened due to a “missing code.” To prevent further loss, the bank suspended its services. An investigation is underway after customers made “high transactions.”
In August 2023, the Bank of Ireland found itself in a similar situation, where certain customers were able to withdraw funds more than their account balances. During the time, the bank had claimed the issue happened due to a “technical issue.” Despite the challenges, the Bank of Ireland assured account holders that any transfers and withdrawals made during this period would still be reflected in their accounts.
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