Ethiopia’s Banking Sector Exposed to Fraudulent Schemes, Loses $15 Million in Five Years

Addis Ababa, May 30, 2022

A recent report by the Ministry of Justice has revealed that Ethiopia’s banking sector is severely vulnerable to fraud, with staggering losses amounting to 1.8 billion birr over a five-year period.

Investigation Uncovers Alarming Figures

The investigation uncovered that a whopping 370 billion birr worth of fraudulent attempts have targeted banks in Ethiopia since 2017. The alarming figures have prompted the Ministry of Justice to engage in urgent consultations with key stakeholders, including:

• Governor Yinager Dessie of the Ethiopia National Bank
• Presidents of major commercial banks
• Officials from Ethio Telecom
• Other industry experts

Commercial Bank of Ethiopia Shoulders Staggering Losses

According to insiders, a staggering 50 percent of these losses have been shouldered by the Commercial Bank of Ethiopia. Furthermore, allegations suggest that some employees of Ethio Telecom may be involved in the fraudulent activities.

Concerns Raised about Banking Sector Security

The gravity of this situation has raised concerns about the security measures currently in place within Ethiopia’s banking sector, sparking calls for immediate action to prevent further financial losses and protect innocent customers.

Takeaways:

• The Ministry of Justice is urging urgent consultations with key stakeholders to address the issue
• The Commercial Bank of Ethiopia shouldered 50% of the staggering losses
• Allegations suggest that Ethio Telecom employees may be involved in fraudulent activities
• The situation highlights concerns about security measures within Ethiopia’s banking sector

It is essential for the government and regulatory bodies to take immediate action to prevent further financial losses and protect innocent customers. The banking sector must prioritize security and transparency to maintain public trust and confidence.