CBA glitch reignites debate about banking failures

Outraged Commonwealth Bank customers took to social media over the weekend after a technical glitch caused duplicate transactions to appear on their accounts.

The issue, which caused unexpected balance drops for many, with some seeing their accounts drained entirely, raised broader questions about what consumers should do when banking systems falter.

It also reignited discussions about the relevance of cash and the potential benefits of alternatives like cryptocurrency during some outages.

Why did CBA customers see duplicate charges?

On Saturday morning, Commonwealth Bank of Australia (CBA) customers started noticing duplicate charges on their accounts, sparking widespread concern. Many feared their accounts had been compromised.

One CommBank user shared their experience on Reddit, writing, "Any Australian CommBank users experiencing duplicate payments that are pushing you into debt? This happened to my mother and her partner last night, and now it's happened to me."

Just after 9am AEDT, Downdetector, a real-time problem and outage monitoring site, showed nearly 900 reports about CommBank, mainly about account balances, within a 24-hour period.

The issue affected a large but undisclosed number of customers, who shared their frustrations online.

"Been charged twice for purchases at Telstra and Coles... CommBank app won't even load now. On hold for 30 minutes," posted one Downdetector user.

Others worried about possible fees due to overdrawn accounts or missed payments.

"How am I meant to go buy my son nappies when my account is $400 overdrawn," @NicoleAmy88 asked on X (formerly Twitter).

How was it resolved?

CBA swiftly acknowledged the issue on X. It said it was aware of the issue and was working to reverse the transactions as a "matter of urgency" and any fees charged would be refunded.

The issue was resolved by 5.30pm, when CBA announced that all duplicated transactions had been reversed and any associated fees refunded.

CBA confirmed to Money that the cause of the glitch and its impact are currently being investigated.

What if you were affected?

According to CBA, no customer action is necessary as charges have been reversed. However, if the issue has caused financial hardship or if further assistance is needed, customers are encouraged to contact CBA's support line at 13 2221.

During incidents like these, CBA has also reminded customers to remain vigilant against scams. The bank emphasised that it will never request for sensitive banking information such as passwords or client IDs via email or SMS.

How to minimise the risk in case of a banking failure

The glitch serves as a reminder of how dependent consumers are on digital banking infrastructure.

It also raises the question: What should you do when your bank's system goes down?

1. Maintain access to alternative payment methods

While having too many bank accounts with fees may not be practical, maintaining accounts with two separate banks can help mitigate the effect of an outage. If your primary account is experiencing issues, being able to switch to a secondary account, another card, or a digital wallet can help keep things running smoothly while the problem is resolved.

2. Carry cash as a backup

When bank systems are down or payments are duplicated, your access to money is temporarily compromised. This makes cash a useful backup for essential purchases.

3. Monitor transactions closely

During outages or glitches, it's essential to monitor your account transactions to catch any errors. If a transaction looks off, report it to your bank.

Should you keep cash on hand?

According to the Reserve Bank's (RBA) most recent data, in 2022, cash was used for just 13% of consumer payments, down from 27% in 2019.

As rising inflation has eroded the purchasing power of cash over the years, the idea of a cashless society has shifted from a dystopian what-if to a real possibility in no time.

But while many may argue that cash is no longer king, incidents like these show it can still have value in emergencies.

Is cryptocurrency a viable alternative?

The CBA glitch also ignited a wider conversation about the benefits of cryptocurrencies as an alternative to traditional banking systems.

Unlike banks, cryptocurrencies operate on decentralised networks, meaning they aren't subject to the same risks that can cause outages or transaction duplication.

Supporters of cryptocurrency argue that digital currencies such as Bitcoin could offer a backup solution in cases where traditional financial systems fail.

Transactions on blockchain technology are typically faster and remain unaffected by widespread glitches in centralised banking infrastructure.

For consumers concerned about transparency and access, cryptocurrency could provide some assurance that their funds are always accessible, even if their local bank encounters problems.

That said, cryptocurrency has its own set of challenges.

While blockchain technology holds significant potential for transforming financial systems, they have yet to overcome hurdles like regulatory uncertainty, volatility, scalability, and security concerns.

Traditional banks remain entrenched in the global economy, offering stability and a wide range of services that crypto has not yet fully replicated or surpassed.

But with technological advancements, regulatory frameworks, and wider acceptance, the gap between crypto and traditional banking may start to narrow.

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