2023-10-15 13:04:35
On October 10, transactions at 11 of Japan’s largest banks stopped due to a clearing system error. Among others, Japan Post, Mitsubishi Trust and JPMorgan Chase were unable to provide adequate service. As a result, transfers became impossible for more than 1 million customers. On October 10, the Zengin-net interbank data communication system became inoperable due to an error. As a result, it became impossible to execute millions of transactions, which affected many customers. The company that runs the system said it will try to process already accepted transfers through a back-up system to ensure they arrive by the end of the day. Mizuho Bank and Sumitomo Mitsui Banking Corp. both said they were experiencing delays in interbank transactions. MUFG Bank announced that money transfers might not be processed either through ATMs or online banking. The Japanese megabank added that it was also unable to receive the amounts transferred from the mentioned banks. Most Japanese banks are connected to the Zengin system, which processes an average of 6.5 million transactions and $80 billion a day. So it is not surprising that the computer error affected more than 5 million transactions. According to the Zengin settlement network, this was the first major system failure in the 50 years since its inception in 1973. The situation stabilized on October 12, following Zengin-net announced that it had restored the payment network that had partially collapsed for nearly two days. Even a small mistake is enough to leave hundreds of thousands without service In August this year, there were two similar cases. One of the Bank of England’s transaction systems had to be shut down following a technical error occurred. The system processes £1 billion worth of transactions on its best days. The error was finally resolved following 6 hours. Bank of Ireland did the same following a system crash left customers unable to access their mobile banking for several hours. At the end of September, an outage at Australia’s ANZ Bank blocked access to accounts. This affected the Bank and its customers extremely badly, as it happened in the busy early followingnoon hours and on a national holiday in the state of Victoria. The cases highlight the vulnerability of our financial systems. One small mistake and hundreds of thousands of people are unable to access their finances. Fortunately, the situations mentioned above were not caused by fraudsters, so there is less to talk regarding in terms of financial damage. However, the outages show that a malicious attack can cause huge headaches for millions of people and also highlight the importance of decentralized financial systems like Bitcoin.
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