The Commercial Bank of Ethiopia (CBE) is currently facing the challenge of recovering significant amounts of money that were withdrawn by customers due to a “systems glitch”. On Saturday, customers realized that they could withdraw more cash from their accounts than they actually had. According to local media, over $40m (£31m) was either withdrawn or transferred to other banks. It took the bank several hours to halt all transactions and address the issue.
Students withdrew a significant amount of money from state-owned CBE, as reported by bank president Abe Sano to journalists. The news of the incident quickly spread through universities via messaging apps and phone calls, leading to long lines at campus ATMs in western Ethiopia. One student mentioned that police officers had to intervene to halt the withdrawals. Another student from Dilla University shared that several peers managed to withdraw money from CBE during the late hours of the night.
CBE, established 82 years ago, has over 38 million account holders. Ethiopia’s central bank, acting as the financial sector’s regulatory body, addressed an issue related to a service interruption caused by a glitch during maintenance activities in a recent statement. The statement clarified that the incident did not involve a cyber-attack and assured customers that their personal accounts were secure, despite not specifying the amount of money withdrawn during the incident.
Several universities have issued statements urging students to return any money that does not belong to them, which they may have taken from CBE. The Bank stated that individuals who return the money will not face criminal charges. However, the extent of the bank’s success in recovering their funds remains unclear. A student from Jimma University mentioned that he had not heard of anyone returning the money, but observed police vehicles on campus. Additionally, an official from Dilla University reported that bank employees were present on campus to collect money voluntarily returned by some students.
The central bank of Ethiopia, responsible for supervising its financial sector, has stated that the disruption was caused by security checks within the system. They emphasized that this incident does not pose any threat to the bank, its customers, or the overall financial system.