Ethiopian bank loses over $40 million after technical glitch

The state-run Commercial Bank of Ethiopia on Saturday discovered an error that allowed bank customers to withdraw or transfer more money than they had in their accounts. In a statement, the bank blamed a “routine system update and inspection” for the glitch. Bank President Abie Sano added that it was not caused by a cyber attack. The Associated Press cited Sano, who said half a million transactions were made during the glitch before the system was temporarily shut down hours later. The bank assured customers that their personal accounts would not be impacted by the thefts.

How did so many people get so much money in so short a time? Sano said university students were the main culprits for the abuse of the temporary loophole. News of the error spread through messaging apps and phone calls, prompting long lines at campus ATMs, according to the BBC. Universities are asking students to return any illegally withdrawn money. The bank did confirm that only people who fail to return pilfered money will be prosecuted, with Sano insisting students who return money will not be in trouble.