The Commercial Bank of Ethiopia (CBE) has successfully recovered approximately $10 million of the $14 million lost due to a technical glitch that allowed customers to withdraw more funds than they had in their accounts. CBE President Abe Sano confirmed that thousands of customers, primarily university students, returned the excess cash voluntarily after news of the incident spread rapidly through social media and messaging apps.
The glitch occurred on March 15, enabling around 490,000 transactions before the bank identified the issue. Initial reports suggested losses exceeding $40 million, but Sano clarified that the actual amount was lower, with the bank now focused on recovering the remaining funds. He warned that customers who fail to return the money could face legal action, stating, “There is no way that they can escape because they are digital transactions”.
University students were notably involved, forming long queues at ATMs after the glitch became public knowledge. Reports indicate that some individuals used the funds for extravagant purchases, complicating recovery efforts as not all exploiters can repay what they took.
CBE has reassured clients that their personal accounts remain secure and emphasized that the glitch was not due to a cyberattack but rather a systemic error during routine updates. The bank has also taken unconventional measures to pressure those withholding funds by publicly disclosing their identities and account details.
Established 82 years ago, CBE is Ethiopia’s largest bank, managing over 38 million accounts. The incident has raised concerns about the stability of Ethiopia’s banking system and highlighted vulnerabilities in digital transaction processes.
