A recent glitch in the system allowed Commercial Bank of Ethiopia customers to withdraw more money than was in their accounts.
Most of these customers were students, and now the bank and the police are trying to get that money back.
The Commercial Bank of Ethiopia Is Ethiopia’s Largest Bank
The Associated Press has reported that the Commercial Bank of Ethiopia is the country’s largest bank, with around 43 million customers.
The bank was established in 1963 and has never seen a system glitch like this.
Commercial Bank of Ethiopia Suffered a Systems Glitch
In March 2024, many customers of the Commercial Bank of Ethiopia discovered a glitch in the system.
They found that they could take out more money than was currently in their accounts, which many people, especially students, took advantage of.
$40 Million Was Withdrawn or Transferred
Whilst the glitch was happening, Addis Fortune reported that around $40 million is believed to have either been withdrawn or transferred to other bank accounts.
It is believed that during the glitch, around half a million transfers and withdrawals were made.
The Glitch Lasted Several Hours
The Commercial Bank of Ethiopia struggled to get the system glitch under control initially.
After several hours of the glitch and millions of dollars being transferred, the bank eventually got everything back under control.
The Glitch Was Completely Internal
When a glitch like this occurs, especially in banking, many worry that the glitch is coming from an external source, which could pose many more risks.
However, CBE President Abie Sano has confirmed that the glitch was internal and is now fully under control.
The Glitch Was Caused by Routine Updates
The glitch was completely internal, and the bank said it occurred during a routine system update, according to Sky News.
It occurred during the updates and inspection, which should put some customers at ease, as it does not appear to have been caused by a cybersecurity attack.
University Students Took Advantage of the System’s Glitch
University students are hardly known for having an endless pot of money, and the BBC reported that it was mostly students who took advantage of the system glitch.
Students were texting and calling each other about the glitch, which increased the number of people making money transfers and withdrawals.
Police Officers Put a Stop to Money Withdrawals and Transfers
The money withdrawals continued until police officers arrived at ATMs and stopped anyone from making any withdrawals.
Universities have also had to advise their students to return any money they took that was not theirs.
People Are Not Being Charged as Long as They Return the Money
Because this was a glitch in the system, people are not charged for taking the money as long as they return it.
However, it is currently unknown whether all the money has been returned, nor how much of it has been returned.
Convincing People to Return the Money Might Not Be Smooth
It’s all well and good for the bank and the police to say they are going to get the money back, but that may be easier said than done.
Techpoint Africa has suggested that the bank and police’s efforts to convince people to give the money back have been an entirely different story.
The System Glitch Reveals the Danger of Relying on Internet Banking
With many people becoming increasingly reliant on Internet banking, the glitch in the system at the Commercial Bank of Ethiopia suggests that people should be cautious about becoming too reliant on it.
This is especially true as it took the bank several hours to sort out, and as a result, ATM withdrawals, internet banking, and mobile bank-to-bank transfers were put to a halt, leaving many people struggling to pay for things.
