Ethiopia’s largest bank recovers three-quarters of $14m lost in technical glitch, issues warning to customers

Ethiopia’s largest bank, the Commercial Bank of Ethiopia (CBE), has successfully recovered nearly three-quarters of the $14 million it lost due to a glitch that allowed customers to withdraw more money than they had in their accounts.

Abe Sano, the bank’s head, announced on Tuesday that approximately $10 million has been recovered, largely through voluntary returns from thousands of customers.

However, Mr. Sano warned that those who have not returned the excess funds will face criminal charges.

The glitch primarily affected university students, who withdrew substantial amounts of money after news of the technical issue spread rapidly through messaging apps and phone calls on March 16.

This led to long queues at campus ATMs as students rushed to take advantage of the situation.

While the bank has not disclosed the exact nature of the glitch, it has clarified that it was not the result of a cyber-attack and assured customers that their personal accounts remained secure.

Several universities issued statements urging students to return any funds they had taken erroneously.

In an interview with the media, Mr. Abe emphasized the bank’s commitment to holding customers accountable for their actions, stating that digital transactions are traceable, and those involved are legally responsible.

Despite initial reports indicating a higher loss of over $40 million, the recovery efforts have been relatively successful, with 490,000 transactions identified as part of the glitch.

The CBE, which has been operational for 82 years and serves over 38 million account holders, is working diligently to rectify the situation and ensure the integrity of its financial systems.

Source-BBC