Commercial Bank of Ethiopia, the country’s largest bank, is trying to recover more than $40 million after a technical fault allowed customers to withdraw more money than they had in their accounts.
Customers flocked to ATMs across Ethiopia after the problem was discovered at the Commercial Bank of Ethiopia, local media reported.
The incident was widely reported on social media by university students who withdrew a large portion of the money in question, according to the bank’s CEO, Abe Sano.
Although the bank did not specify the total amount of withdrawals, Abe informed reporters that nearly half a million transactions were made during the incident. A local newspaper reported a loss of 2.4 billion Ethiopian birr (about $42 million).
The Central Bank of Ethiopia said the problem was caused by a “routine system update and inspection” rather than a cyberattack.
Ethiopia’s banking system was temporarily suspended for a few hours to resolve the problem, preventing customers from withdrawing money.
Founded in 1963, Commercial Bank of Ethiopia is the country’s largest bank, serving 40 million customers.
Abe announced that the bank is working with the police to recover the lost funds. He also clarified that students who withdrew money that did not belong to them will not face prosecution.
A bank spokesperson could not be reached for comment.
This incident highlights the importance of security and stability of banking systems, as well as the need for preventive measures to avoid such problems in the future.