The Commercial Bank of Ethiopia, a key banking institution in the country, has made a major recovery, reclaiming close to 80% of its lost funds, previously flagged as a system error loss. This retrieval has notably improved the bank’s financial wellness, alleviating the burden of the previous loss.
An internal probe was carried out to understand the root cause of the error. Results of the investigation showed that the error was rectified through the tireless efforts of the bank’s IT and compliance teams. As a precaution, the bank plans to fortify its cybersecurity setup and implement regular system audits in an effort to prevent future occurrences.
The bank’s President, Abe Sano, revealed that the glitch enabled customers to withdraw an estimated $14 million more than their account balances. Initially, the loss was suspected to be $40 million before the bank announced the return of approximately 15,000 overdrafts due to the system crash.
Only about 567 account holders have yet to return the surplus amount, according to reports. In response, the bank publicized the account details of these holders on March 26.
Ethiopian bank reclaims majority of misplaced funds
Sano emphasized that this move is an attempt to maintain transparency and does not reflect a downturn in the bank’s financial performance.
In relation to potential privacy concerns arising from publishing account details, Sano assured that all actions were legally vetted. To limit potential backlash, the bank offered free credit monitoring services for these account holders. President Sano promised a thorough analysis to avoid future mishaps of this nature.
News of the mishap primarily spread through social media on March 16. The central bank of Ethiopia has clarified that the fault was a result of a routine system upgrade, not a result of cyber-attacks.
Fulfilling the financial needs of over 40 million customers, Commercial Bank of Ethiopia remains a significant player in the country’s economy. The bank is also proud of its corporate social responsibility initiatives, contributing to the broader well-being of Ethiopian society. Its sturdy commitment and long-standing presence justifies its positioning as a solid and dependable banking partner for millions of Ethiopians.
