A major system malfunction at the Commercial Bank of Ethiopia (CBE), the country’s largest financial institution, on March 16th, 2024, has resulted in unintended consequences for some university students.
A surge in digital transactions overwhelmed CBE’s systems, allowing unauthorized withdrawals and transfers. While the exact number of transactions and total amount remain unconfirmed by the bank, industry sources estimate roughly 66,000 customers conducted unauthorized transactions worth approximately 2.4 billion birr.
The glitch credited transfers without debiting the corresponding amount from accounts. This exposed vulnerabilities within the bank’s digital infrastructure and the complex interdependencies in modern banking.
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Seizing this opportunity, some university students accessed these erroneously credited funds. Reports indicate extravagant spending on laptops, smartphones, and internet packages.
However, those who transferred the money to other accounts now face frozen accounts as CBE attempts to recover the misappropriated funds.
University administrations have issued urgent calls for students to return the funds immediately. However, many students have already spent the money, leaving them unable to comply.
