Ethiopia Bank Security Breach Sees Unauthorised Transfers and Withdrawals

Reports have emerged of a significant security breach at one of Ethiopia’s state-owned banks, Commercial Bank of Ethiopia (CBE), raising concerns about the integrity of the country’s financial systems. The incident, which occurred during the late hours of Friday night, saw users exploiting vulnerabilities in the bank’s online systems, enabling unauthorised transfers and withdrawals.

According to social media reports and eyewitness accounts, users were able to transfer large sums of money and withdraw funds from ATMs despite not having sufficient balances in their accounts. The incident primarily affected the bank’s online banking services, causing disruptions in mobile banking and internet banking platforms.

Journalist Elias Meseret shared details of the breach on social media, citing witnesses who reported unauthorised transactions, particularly by university students, involving substantial amounts of Ethiopian Birr.

The situation escalated as notices circulated in universities, including Addis Ababa University and Jimma University, urging students to return any unlawfully obtained funds or face consequences. While the Commercial Bank of Ethiopia did not openly confirm the incident, it issued multiple notices acknowledging systemic problems affecting branch-level services and digital banking platforms.

Despite the bank’s reassurances that the situation was under control and that services were being restored, concerns persisted among the public. The incident sparked discussions on social media platforms, with many questioning the bank’s transparency and the government’s handling of security issues.

Following the breach, the bank initiated efforts to recover the unlawfully withdrawn funds, forming a task force comprising security forces and experts from the National Bank of Ethiopia. The task force aims to identify and apprehend individuals responsible for exploiting the system failure to conduct fraudulent transactions.

While the exact amount of money lost during the breach remains unclear, reports suggest significant financial implications for the bank, with millions of Ethiopian Birr withdrawn within a short period. The incident has underscored broader concerns about cybersecurity and internal vulnerabilities within Ethiopia’s financial institutions.

This breach comes amid a backdrop of internal challenges within the Ethiopian government, including instances of sabotage and fraud. The government’s response to such incidents, coupled with ongoing political tensions, has raised questions about governance and security within the country.

As investigations into the breach continue, stakeholders are calling for robust measures to strengthen cybersecurity protocols and safeguard the integrity of Ethiopia’s financial systems.