Embattled Ethiopian Bank Recovers Majority Of Funds Lost In Software Glitch

By  |  March 28, 2024

The Commercial Bank of Ethiopia, the country’s largest lender, has made significant strides in recovering funds lost due to a recent software glitch. According to the state-owned lender’s president, Abie Sano, more than three-quarters of the lost funds, now reported to be around USD 14 M, have been reclaimed.

Approximately 78 percent of the 801 million birr withdrawn or transferred during the incident on March 15th, totalling 622.9 million birr (USD 11 M), has been returned to the bank, reports Reuters.

Sano mentioned that the bank has taken steps to address outstanding balances, including publishing the names of over 500 individuals yet to return the excess funds. Initially, university students were singled out for their role in disseminating information about the glitch through social media channels.

The glitch occurred during a routine update to the bank’s systems, as confirmed by Ethiopia’s central bank earlier this month. Despite the disruption, the central bank assured customers and stakeholders that there was no significant risk to the financial system’s integrity.

The incident sheds light on the vulnerabilities inherent in digital banking systems and underscores the importance of robust protective measures. As recovery efforts continue, the Commercial Bank of Ethiopia remains focused on restoring trust and ensuring the stability of its financial operations.

This development serves as a reminder for financial institutions worldwide to prioritise the security and resilience of their technological infrastructure in an increasingly interconnected digital landscape.

Featured Image Credits: Maheder Haileselassie

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