Rédaction Africa Links 24 with Chief Editor
Published on 2024-03-21 15:08:14
Ethiopia’s largest commercial bank, the Commercial Bank of Ethiopia (CBE), found itself in a state of chaos as customers took advantage of a “systems glitch” to withdraw large sums of money. The situation, which occurred on a Saturday, saw customers able to access more cash than they had in their accounts, leading to over $40 million being withdrawn or transferred to other banks before the institution was able to freeze transactions.
The majority of the money was withdrawn by students, according to CBE president Abe Sano. The news of the glitch spread rapidly across universities through messaging apps and phone calls, prompting long lines at campus ATMs. One student at Jimma University Institute of Technology expressed disbelief when he first heard that it was possible to withdraw large amounts of money or transfer funds using the bank’s app outside of the usual limits. Similar reports came from Dilla University, where students were able to access money during the early hours of the morning.
With over 38 million account holders, CBE has a significant presence in Ethiopia’s financial sector. The central bank released a statement attributing the glitch to maintenance and inspection activities, but focusing more on the interruption in service following the freezing of transactions. Despite the incident, Mr. Sano reassured customers that there was no cyber-attack involved and that their personal accounts remained secure. However, in an effort to recover the lost funds, the bank urged customers to return any money withdrawn in error.
Several universities advised their students to return the money taken from CBE, stating that those who complied would not face criminal charges. Reports from Jimma University indicated that some students had not returned the money, but police presence on campus suggested efforts to rectify the situation. Dilla University officials reported that bank employees were actively collecting voluntarily returned funds from students.
The situation raised concerns about the security and reliability of banking systems in Ethiopia, as well as the potential vulnerabilities that could be exploited by customers. While the exact amount of money withdrawn during the incident was not disclosed, Mr. Sano mentioned that the loss was minimal compared to the bank’s total assets. Despite the setback, CBE remained confident in its ability to maintain the security of customer accounts and restore normal operations.
In conclusion, the “systems glitch” at CBE highlighted the importance of robust cybersecurity measures and diligent oversight in the banking sector. As the bank works to recoup the lost funds, customers are encouraged to remain vigilant and report any suspicious activity to avoid similar incidents in the future.
Read the original article on Lusaka Times
