Tuesday, January 14, 2025

Customers cash in on Commercial Bank of Ethiopia’s ‘systems glitch’, withdraw, transfer over $40 million

The bank holds the accounts of over 38 million people.

• March 19, 2024
COMMERCIAL BANK OF ETHIOPIA
COMMERCIAL BANK OF ETHIOPIA[Credit: Arise News]

Customers of Commercial Bank of Ethiopia have capitalised on a “system glitch” to withdraw amounts that were more than what is actually in their bank accounts.

According to the BBC, over $40 million (£31m) had already been either withdrawn or transferred to other banks before the bank could freeze further transactions hours later.

Speaking at a press conference on Monday in Addis Ababa, the bank’s president, Abe Sano, alleged that most of the money was withdrawn by university students after reports of the glitch spread on Saturday through messaging apps and phone calls.

Failing to confirm the amount of money withdrawn, Mr Sano revealed that over 490,000 “unhealthy and illegal” banking transactions were made and processed but said the loss recorded was small compared to the bank’s total assets.

He assured customers of the safety of their monies, confirming that “there have been attempted cyber attacks, but the bank’s cyber security was not compromised.”

He said the glitch happened during their “maintenance and inspection activities” to improve their banking system and was caused by a “missing code,” prompting them to suspend their service to prevent more losses.

The bank’s president, however, stated that an investigation had been launched because they had reported to the authorities customers who had made high transactions.

He also called on customers to return monies that did not belong to them, promising they would not be charged with a criminal offence.

Ethiopia’s biggest commercial bank is now trying to recover the huge amount of money customers withdrew after the glitch.

A student in Western Ethiopia told the BBC that people had formed long queues at campus ATMs and were withdrawing money before police officers arrived to stop them.

The bank holds the accounts of over 38 million people.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Abubakar Kyari

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Israeli Prime minister Benjamin Netanyahu (Credit: CNN)

World

Israeli spokesman says hostage deal with Hamas close

The government spokesperson said, “We are close, but not yet at the conclusion.”

Court Gavel

States

Islamic cleric jailed 21 years for attempted sexual assault on teenage pupil

On September 6, 2024, the convict opted to change his plea from not guilty to guilty.

Lagos 10th House of Assembly speaker, Mudashiru Obasa with Lagos Governor Babajide Sanwo-Olu

Politics

Aide denies Sanwo-Olu’s involvement in Obasa’s impeachment as Lagos speaker

Mr Akosile stated that Mr Sanwo-Olu was preoccupied with important issues aimed at developing the state and serving Lagosians.

non-governmental organisation, the Environmental Defenders Network

States

Group seeks end to oil leaks, inferno in Rivers communities

The group’s executive director expressed worry that concerned government bodies were unable to take necessary actions towards protecting the environment.

HEDA and Peoples Gazette

Hot news Home top

HEDA hails Peoples Gazette, Sahara Reporters after Obasa’s impeachment, urges anti-graft agencies to probe ex-Lagos Speaker

HEDA described the story as reflective of the significant role of investigative journalism, noting that the report was laudable.

LEGISLATIVE GAVEL

States

Police arraign 29-year-old man over alleged N1.7 million fraud

The defendant pleaded not guilty to the charges preferred against him.