Retailers face cash-only chaos amid chaotic global IT outage

The modern conveniences of digital transactions and online shopping have become a staple in the lives of many Australians.

However, the recent global IT outage has served as a reminder of the vulnerabilities inherent in our increasingly interconnected and digital-dependent world.

In an event that has left consumers across the nation bewildered, major Australian retailers such as Coles and Woolworths found themselves in a technological gridlock.


The outage, which has had a domino effect on banks, airports, and various businesses, has forced a temporary regression to an almost forgotten era of cash-only transactions.

Shoppers, accustomed to the swift convenience of self-service checkouts and tap-and-go payments, were unexpectedly met with closed lanes and signs requesting cash payments.


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Global IT outage hits Australian supermarkets; some now accept only cash. Credit: @MoonbearAI / X


Social media platforms were abuzz with images and accounts of the chaos, with long queues snaking around stores as customers were directed towards the few operational traditional checkouts.

The disruption has affected in-store purchases and online orders, with Woolworths confirming the closure of six stores and the inability to fulfil some digital shopping lists.

Coles and Woolworths, two of the country's retail giants, have assured customers that their IT departments are working tirelessly to resolve the issue and promise updates as the situation develops.


The outage's ripple effect was felt beyond the supermarket aisles, with other businesses having to turn away customers due to inoperative computer systems.

One Coles customer in Adelaide voiced her frustration and concern, highlighting the broader implications of our shift towards cashless societies.

‘When this happens more and more, how are people going to buy food? How are people going to pay their bills?’ the shopper said.

‘It worries me, for my kids, for their future, our future (and) how it’s going to be (for) life-threatening events where you need to get internet access.’

The root of the problem has been traced back to a misstep by computer security company CrowdStrike and tech behemoth Microsoft.


In an attempt to keep systems secure and up-to-date, an overwhelming number of updates were released simultaneously, causing widespread system crashes.

CrowdStrike has since addressed the 'erroneous' update, advising that a reboot may be necessary for the resolution to apply.

‘As your devices receive this update you may need to reboot for the changes to take effect and for the blue screen (BSOD) issues to be resolved,’ a spokesperson stated.

Microsoft 365 has also acknowledged the disruption, assuring users that relief will be gradual as they work to 'mitigate' the fallout.


Meanwhile, the Australian Government, in conjunction with the National Cyber Security Coordinator, has been investigating the cause of the outage.

Initial findings suggested that this was not the result of a cyberattack, and they have confirmed that emergency services, including triple-0 calls, were not affected.

‘There is no information to suggest this is a cybersecurity incident, and they are continuing to engage across key stakeholders,’ a government spokesperson announced.

In similar news, Meta platforms, including Facebook, Instagram, Messenger, and Threads, experienced a widespread outage that affected thousands of users.

Users reported being logged out and encountering errors when reloading their feeds. Read more about this update here.
Key Takeaways
  • A global IT outage has impacted Australian supermarkets, causing some only to accept cash transactions.
  • Shoppers have faced closed self-service checkouts and long queues at traditional checkouts due to the tech issue.
  • Woolworths and Coles have been affected, with some stores closed and online orders disrupted.
  • The problem is linked to an erroneous update from computer security company CrowdStrike and Microsoft, and the government has indicated it is not a cyberattack.
How has the IT outage affected you? Do you have concerns about the move towards a cashless society? Join the conversation and let us know in the comments below.
 
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I went to pick up my click n collect order at Coles on Saturday. Money is out if my account, but coles have no record of my order. Still waiting on the refund today. Approached Coles customer service online twice and social media and all they can say is not their fault, I have to wait at least 5 days for a refund! I couldn't do my Coles shop as no money on my account, and I also missed out on week 2 of the flybuys promotion of bonus points.
 
All the organisations without computing services are at fault. Proper safeguards are to test ALL updates on a standalone computer before distributing the update to other computers in the organisation.
Endpoint should also have performed better testing
 
I went to pick up my click n collect order at Coles on Saturday. Money is out if my account, but coles have no record of my order. Still waiting on the refund today. Approached Coles customer service online twice and social media and all they can say is not their fault, I have to wait at least 5 days for a refund! I couldn't do my Coles shop as no money on my account, and I also missed out on week 2 of the flybuys promotion of bonus points.
This is exactly why I dont shop at Coles, they dont care about the customer. My click and Collect from Woolworths was ready on Saturday despite the outage
 
Microsoft.

Best known for ever-more complex operating systems that simply do the same old thing but look prettier than the last, whilst making one's personal computer ever-more obsolete
 
Until governments and organizations take security and safeguards more seriously we are all exposed Talking to business will not solve the issue, legislation is needed NOW.
The most secure payment systems were what we had before the internet became a fixation. Cash, manual tills in shops, cheques and instant communication via copper-wire landlines and fax machines attached to one's telephone. Precious few scams and privacy protected. Too easy.
 
I went to pick up my click n collect order at Coles on Saturday. Money is out if my account, but coles have no record of my order. Still waiting on the refund today. Approached Coles customer service online twice and social media and all they can say is not their fault, I have to wait at least 5 days for a refund! I couldn't do my Coles shop as no money on my account, and I also missed out on week 2 of the flybuys promotion of bonus points.
Get in touch with Flybuys. They may give you the promotion as they know about the outage. Worth a try.
 
It was an update that caused the problem, not malware. Endpoint, whose update caused the problem is for enterprise networks, not home users. Home users were not affected.
 
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I spoke about this problem 30 years ago when where I worked we were becoming computerized and I insisted we kept our manual system until we were sure the computer programs would have no problems. Finally after a lot of discussion and arguments the manager agreed with me 2 weeks after the computer system was turned on it crashed luckily we still had the hand written Plans and Schedules we could issue to the production units
 
I spoke about this problem 30 years ago when where I worked we were becoming computerized and I insisted we kept our manual system until we were sure the computer programs would have no problems. Finally after a lot of discussion and arguments the manager agreed with me 2 weeks after the computer system was turned on it crashed luckily we still had the hand written Plans and Schedules we could issue to the production units
You're correct. For every computer system there should be a fall back if the computer is unavailable. However ask, what is the fallback for the internet or phone system? Or perhaps, electricity, gas or water, traffic lights, etc. There is usually none.
 
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