Largest bank in Ethiopia hit by IT glitch that allowed customers to withdraw over $40...

[midian182]

Facepalm: Customers of Ethiopia's largest bank had a nice surprise this week when a glitch allowed them to withdraw unlimited funds. More than $40 million was withdrawn from the state-owned Commercial Bank of Ethiopia (CBE) or transferred to other banks, and recouping it isn't going to be easy.

According to local media, CBE didn't initially notice the technical issue that allowed customers to withdraw more money than they had in their accounts. By the time the bank realized what was going on and froze transactions a few hours later, more than 2.4 billion Ethiopian birr (around $40 million) had been withdrawn or moved to other banks.

Bank president Abe Sano told journalists that much of the money had been withdrawn by students. News that the CBE was giving away unlimited money spread across universities in the country via social media, messaging apps and phone calls, writes the BBC. It led to long lines at campus ATMs that lasted until the police arrived to stop people.

A student at Jimma University Institute of Technology said he did not believe his friends when they told him at around 1 am local time that it was possible to withdraw large amounts of money from ATMs or transfer it via the bank app. Another student, at Dilla University, said several people on campus retrieved money from CBE between midnight and 2 am.

Sano stressed that the incident was not a cyberattack. The bank said the glitch was the result of routine "maintenance and inspection activities," and that customer accounts were not affected.

At least three universities have advised students to return any money not belonging to them that they may have taken from CBE. Sano said those returning the money would not be charged with a criminal offense.

It's unclear how much the bank has managed to recoup. An official at Dilla University said bank employees were on campus collecting money that some students were returning voluntarily.

More than 38 million people hold accounts at CBE. The bank says its ATM services are now fully operational, though it may want to rethink its slogan: "The bank you can always rely on!"

Image credit: Karolina Grabowska

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https://www.techspot.com/news/102326-ethiopia-largest-bank-hit-glitch-allows-customers-withdraw.html

 

[Theinsanegamer]

If you live in Ethiopia and got $40 million, take that dosh and RUN. You're not getting another chance.

 

[Neatfeatguy]

Banks and corporations love their money...oh and governments, too.

They will get their money back. Those that took it will pay them back and maybe even interest on top of it, not to mention that they could also incur jail time or fines.

Greed surpasses stupidity or maybe they're one in the same.

 

[Uncle Al]

You had $40 Million in Ethiopia you could buy the bank, and the country for that matter ....

 

[m4a4]

These people are smart enough to know their actions were recorded and that they will be prosecuted for a crime (or worse) if they don't voluntarily fix the issue... right?

I wonder how many feel entitled to the money, and will ruin their lives over it...

 

[fadingfool]

So if a "prince" in Africa sends you an email saying they have $40M they need to get out of the country, this time it might be true

 

[Squid Surprise]

Slightly misleading headline - $40 million was the TOTAL amount of money lost. Each person only got a few thousand at most… still pretty big, but not exactly retire to a villa in southern France big…

 

[Theinsanegamer]

These people are smart enough to know their actions were recorded and that they will be prosecuted for a crime (or worse) if they don't voluntarily fix the issue... right?

I wonder how many feel entitled to the money, and will ruin their lives over it...

Is it really a stretch to assume that "justice' wont be served in such a dysfunctional state? It's not like Ethiopia is knows as the harbinger of rules and regulations....

 

[m4a4]

Is it really a stretch to assume that "justice' wont be served in such a dysfunctional state? It's not like Ethiopia is knows as the harbinger of rules and regulations....

Hence the "or worse".

I wouldn't trust the banks to be very friendly beyond the warning.

 

[MaestroIT]

The question is what really happened here and how did this "hack" work?
they removed the statement "balance = balance - withdrawn money" from the code?

 

[loki1944]

That sucks

 

[Squid Surprise]

The question is what really happened here and how did this "hack" work?
they removed the statement "balance = balance - withdrawn money" from the code?

well, all it would take is for one character from that line of code to be deleted... even a missing comma can cripple an entire program... guess they didn't do any testing...

 

[loki1944]

So if a "prince" in Africa sends you an email saying they have $40M they need to get out of the country, this time it might be true

but the Nigerian ones aren't; seriously thkugh Ethiopians are awesomeflown on their airline thru Adis many times.

 

[kiwigraeme]

but the Nigerian ones aren't; seriously thkugh Ethiopians are awesomeflown on their airline thru Adis many times.

Really liked Ethiopia the people , the injera wat ( stew/uorry with a sour flat crepe) , the coffee , the honey beer etc . Annoys me the silly war with Eritrea . The Mengistu govt earlier on that did so much bad stuff.

Most famines are caused by wars. Sure as you go to Somalia ,Djibouti the land is more barren , but much of Ethiopia is fertile

They also have great music
Lots of nature , travelled to south really different again ( black african tribes/people ) , catching rides on Army or UN supply trucks
At the time only got a visas for 30 days , so 30 plus another extension for 30 back in Addis , Could of easily stayed longer and was sad to leave it. Only negative was the Addis bus station , lots of grifters and some petty thieves there . Stealing is not tolerated in most of Africa , except as a way for army govt to supplement their incomes - and in certain countries thieves can be killed by locals say in Lagos .
Plus one time taken to police station for questioning as possible spy in one town - I just count those as an experience - happened often in China in 94 as in lots of remoter places where no tourists - China was a shakedown for a permit , told no photos get on next bus blah blah blah sometimes

 

[loki1944]

Really liked Ethiopia the people , the injera wat ( stew/uorry with a sour flat crepe) , the coffee , the honey beer etc . Annoys me the silly war with Eritrea . The Mengistu govt earlier on that did so much bad stuff.

Most famines are caused by wars. Sure as you go to Somalia ,Djibouti the land is more barren , but much of Ethiopia is fertile

They also have great music
Lots of nature , travelled to south really different again ( black african tribes/people ) , catching rides on Army or UN supply trucks
At the time only got a visas for 30 days , so 30 plus another extension for 30 back in Addis , Could of easily stayed longer and was sad to leave it. Only negative was the Addis bus station , lots of grifters and some petty thieves there . Stealing is not tolerated in most of Africa , except as a way for army govt to supplement their incomes - and in certain countries thieves can be killed by locals say in Lagos .
Plus one time taken to police station for questioning as possible spy in one town - I just count those as an experience - happened often in China in 94 as in lots of remoter places where no tourists - China was a shakedown for a permit , told no photos get on next bus blah blah blah sometimes

Djibouti does alright thanks to its strategic location attractibg foreign governments; but I hated that place. Laziest Soldiers I have worked with out of 13 African countries I have had contracts in. Even the FARDC had more gumption.

 

[kiwigraeme]

Djibouti does alright thanks to its strategic location attractibg foreign governments; but I hated that place. Laziest Soldiers I have worked with out of 13 African countries I have had contracts in. Even the FARDC had more gumption.

Must be an interesting job , take lazy over some of the UN scandals of peace keeping forces . Eg African nations in the past sending practically criminals to other countries , Those nations collecting the wage and paying peanuts , and those soldiers committing rape and shakedowns etc

Africa is kind of a magical place . See young volunteer people going there to "make a difference " and becoming disillusioned with aid not even getting out of HQ or swiss bank accounts . Aid seized and sold by ruling party
Remember talking to volunteer -involved in planting sub-Sahara - saying the villagers really understood it was more than just collecting 2cents a tree planted . They do , but if I offered some 1 cent to remove them they probably would, their concern is to feed family today and they would then get offered 2 cents to replant them.

Magical even though you get asked to sponsor seemingly 28 year olds as students, a cup of sugar etc . They are actually very kind and generous in their hospitality.

I think you can see be a cynic and still believe in the future of Africa . Most volunteers in schools , hospitals , water are making a difference