African Union Foils $6 Million Fraud Attempt at Ethiopian Bank, Prompts Security Review

The African Union (AU) successfully thwarted an attempt to defraud the organization of more than $6 million from its accounts at the Commercial Bank of Ethiopia (CBE) on April 15, 2024 in Addis Ababa.

An individual not employed by the AU had tried to withdraw the funds through forged payment orders claiming to be for construction and water drilling works.

The CBE staff and the AU's finance department identified the documents as forgeries and took swift action to prevent any money from being withdrawn. "The attempted fraud involved the submission of forged Payment Transfer Orders for construction and water drilling projects," the AU stated. "The AU's Finance Directorate identified the documents as forgeries, and the relevant security authorities in Ethiopia were promptly informed."

The AU expressed appreciation to the CBE leadership and staff for their vigilance in detecting and stopping the fraudulent attempt. "The African Union (AU) has praised the Commercial Bank of Ethiopia (CBE) for its swift action in thwarting a $6 million fraud attempt on April 15, 2024," an AU spokesperson said. "The AU commended the vigilance of CBE staff and its finance department for successfully preventing the withdrawal of funds."

Ethiopian security authorities were notified about the incident, and prompt action was taken to identify and detain the individual(s) involved in the fraud attempt. The AU emphasized that it is treating this matter with the utmost seriousness and remains committed to upholding the highest standards of financial governance and ethics.

Why this matters: The foiled fraud attempt at the Commercial Bank of Ethiopia highlights the ongoing threat of financial crimes targeting major institutions. The incident underscores the importance of robust security measures, staff vigilance, and cooperation between organizations and banks to prevent and detect fraudulent activities.

The AU stated that this incident has prompted a comprehensive review of its existing security measures and protocols to identify any potential vulnerabilities. "The AU is now working closely with the CBE to reinforce safeguards and implement enhanced protocols to prevent future fraudulent attempts," the AU said in a statement. The pan-African organization emphasized its commitment to collaborating with the CBE and relevant authorities to strengthen financial controls and ensure the integrity of its operations.

Key Takeaways

• AU foiled $6M fraud attempt at Commercial Bank of Ethiopia on April 15, 2024.
• Forged payment orders for construction, water drilling works were identified as forgeries.
• CBE staff and AU finance dept. detected fraud, notified authorities to prevent withdrawal.
• AU praised CBE's vigilance and is reviewing security measures to prevent future attacks.
• Incident underscores importance of robust security, cooperation to combat financial crimes.