The Great Cashless Crash: When a Software Update Plunged the World Back to Cash
On Friday, July 21st, 2023, a seemingly innocuous software update from CrowdStrike caused a ripple effect that reverberated across the globe, exposing the fragility of our increasingly cashless society. Millions of Microsoft systems around the world went offline, leading to widespread disruptions and a stark reminder of the critical role cash still plays in our lives. This event, dubbed the "Great Cashless Crash," highlighted the vulnerabilities inherent in our reliance on digital infrastructure, especially when it comes to everyday transactions.
The Chaos Unveiled:
The impact of the outage was felt most acutely in Australia, where the government has actively encouraged businesses to embrace cashless transactions. Images flooded social media, showcasing card-only self-checkout terminals at grocery giant Coles displaying the infamous "Blue Screen of Death" (BSOD), signaling system failure. Lengthy queues for human-operated registers snaked through aisles, while some businesses, unable to process transactions, simply shut their doors.
Similar scenes played out across the globe. Indian airlines resorted to handwritten boarding passes, while businesses in the US, such as minor league baseball teams, public pools, and movie theaters, declared themselves cash-only until further notice.
The impact on Starbucks, which had been aggressively pushing towards a "cashless" experience, was particularly notable. Videos surfaced on TikTok showing mobile ordering systems entirely down, label printers malfunctioning, and baristas resorting to handwritten orders on sticky notes. The outage coincided with a nationwide Starbucks promotion offering $3 drinks to rewards members, further amplifying the chaos and frustration for both customers and employees.
Software Supply Chains: The Achilles’ Heel
Richard Forno, a cybersecurity lecturer at the University of Maryland, explained that the outage served as a stark reminder of the vulnerabilities inherent in software supply chains. "Software supply chains have long been a serious cybersecurity concern and potential single point of failure," Forno stated. "Given today’s events, with any luck, perhaps the world may finally realize that our modern information- and often cloud-based society is based on a very fragile foundation that’s not built for security or resiliency."
The Cashless Paradox:
The irony is that this widespread disruption came at a time when the push towards a cashless society was accelerating. The pandemic’s impact on the circulation of physical money, coupled with the convenience and perceived hygiene benefits of digital payments, spurred a surge in businesses going cashless.
However, the ACLU, amongst other organizations, has raised concerns about the implications of this trend. They argue that cashless stores enable consumer surveillance and disproportionately affect low-income customers, who may have limited access to bank accounts and rely more heavily on cash. This disparity contributed to the passage of legislation in cities like Philadelphia, San Francisco, and New York, making it illegal for businesses to be entirely cashless.
The Great Cashless Crash: A Wake-Up Call?
The Great Cashless Crash is a stark wake-up call, highlighting the inherent risks associated with our increasing dependence on digital infrastructure. While the convenience and efficiency of cashless transactions are undeniable, the outage demonstrated the vulnerability of a system that relies on interconnected software and hardware, all susceptible to unforeseen disruptions.
The event necessitates a critical reevaluation of our approach to digital payment systems. It demands a balanced approach, prioritizing security, resilience, and inclusivity. We must acknowledge the critical role cash still plays in ensuring equitable access to essential goods and services for all members of society. This event serves as a reminder that even in a technologically advanced world, leaving room for a reliable and accessible alternative like cash is essential for safeguarding our economic and social well-being.
It is crucial to consider the following in moving forward:
- Strengthening Software Supply Chains: Investing in robust security measures and rigorous testing of updates and software releases is essential to prevent similar disruptions in the future.
- Promoting Backup Systems: Encouraging businesses to implement backup systems, including the ability to process transactions through traditional methods like cash, would offer vital redundancy in case of digital failures.
- Bridging the Digital Divide: Ensuring access to financial services, including banking options and affordable internet access, for low-income populations is vital in mitigating the potential harms of increasing digitalization.
- Promoting a Hybrid Approach: Embracing a hybrid system, where both digital and traditional payment methods are readily available, would create a more resilient and inclusive environment for businesses and customers alike.
The Great Cashless Crash served as a wake-up call, highlighting the unintended consequences of focusing solely on digitalization. Embracing a more nuanced and balanced approach to payments, emphasizing security, resilience, and inclusivity, will be critical to building a truly sustainable and equitable future for all.
