Commercial Bank of Ethiopia recovers $11m lost in system glitch
TLDR
- Commercial Bank of Ethiopia reports significant recovery, reclaiming 78% of $14 million lost due to software glitch.
- Efforts ongoing to recover remaining balance; bank discloses names of over 500 individuals yet to return funds.
- Bank president attributes incident to "theft," implicating university students as perpetrators who spread news of glitch on social media.
The state-owned Commercial Bank of Ethiopia has reported a significant recovery, reclaiming over three-quarters of the $14 million lost due to a software glitch earlier this month.
Around 78% of the 801 million birr withdrawn or transferred during the incident on March 15, equivalent to 622.9 million birr ($11 million), has been retrieved, according to bank president Abie Sano's announcement.
Efforts to recuperate the remaining balance continue, with the bank disclosing the names of over 500 individuals yet to return the funds. Previously, Abie attributed the incident to a "theft," largely implicating university students who allegedly spread news of the glitch via social media.
Key Takeaways
The CBE, established 82 years ago, holds a dominant position in Ethiopia's banking sector, managing over 38 million accounts and commanding a significant share of deposits and loans in the country. However, like many banks across Africa, it faces challenges such as cyberattacks, which result in financial losses. For instance, in May 2023, I&M Bank Rwanda experienced fraudulent withdrawals totaling $10.3 million, surpassing its previous loss of $7.6 million in December 2022. Fraudsters exploited vulnerabilities in the bank's Swift system to transfer funds abroad. Similarly, Absa Bank Kenya encountered a fraud loss of $716,566 in October 2023, though it managed to recover $393,213 through internal fraud mitigation efforts. These incidents underscore the importance of robust cybersecurity measures for financial institutions operating in Africa.
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