The Commercial Bank of Ethiopia loses $40 million to a systems glitch. This new development is still making the rounds and if you would like to learn more regarding it continue reading.
The Commercial Bank of Ethiopia loses $40 Million
Ethiopia’s largest commercial bank, the Commercial Bank of Ethiopia (CBE), found itself grappling with a significant issue following a “systems glitch” that allowed customers to withdraw more cash than they had in their accounts.
The glitch resulted in over $40 million being transferred or withdrawn before transactions could be halted. CBE President Abie Sano acknowledged that students were primarily responsible for the surge in cash withdrawals.
The situation unfolded rapidly, with news spreading quickly across Ethiopian campuses via messaging apps and calls. Students queued up at ATMs, persisting until authorities intervened to shut down the activity. Despite the chaos, CBE, with its long-standing reputation and over 80 years of service, remains a trusted institution with millions of account holders.
The Main Cause of the Incident
While the central bank attributed the incident to a “glitch” during maintenance work, it did not address the issue of the missing funds. CBE’s president reassured customers that it was not a cyberattack and emphasized the security of all accounts. However, some universities are urging students to return any excess cash they obtained.
Efforts to Recover the Funds
Efforts to recover the funds have been challenging, with bank staff at some universities attempting to collect the money. Encouraging people to return the excess cash has proven to be a daunting task.
The Event of a Similar Situation in Other Countries
In the event of a similar situation in other countries, individuals may react differently. While some may exploit the opportunity to exceed their daily limits, others may feel compelled to act responsibly and return the funds. Ultimately, the response would depend on individual ethics, societal norms, and trust in the banking system.
Check out Techpoint to learn more about this breaking news.
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