🦘 Microsoft Outage Causes Chaos, Light Rails To Halt In Peak Hours, American Express Hit With $8 Million Fine

G’day everyone!

Here’s what we’ve got in store for you today:

• Microsoft Outage Causes Chaos

• Light Rails To Halt In Peak Hours

• American Express Hit With $8 Million Fine

Let’s have a look at the market snapshot before jumping into the news:

Australia Grinds to a Halt: Nationwide IT Outage Plays Havoc

A sweeping IT outage took down a slew of businesses across Australia, leaving supermarkets, banks, and even telcos in the lurch this past Friday afternoon.

The chaos kicked off just after 3 pm, wreaking havoc on everything from airport check-ins to online banking and payment systems.

• Supermarket giants like Coles and Woolworths saw checkout counters freeze, causing card payment headaches for shoppers.

• Meanwhile, ANZ’s online banking took a hit, facing an industry-wide issue.

• Over at Telstra, parts of the system were affected, but thankfully their fixed and mobile networks stayed online.

• Even Aussie Rules football fans weren’t spared—the outage blocked access to Marvel Stadium and forced the TAB to halt all betting operations.

• Airports nationwide, including Sydney and Perth, faced massive delays due to downed check-in stations.

• TV newsrooms didn't escape the mayhem either, with autocues going kaput.

The good news? It wasn’t a cyber attack. Leading software provider CrowdStrike’s latest update seems to be the culprit, causing its Falcon security sensors to misbehave across multiple networks.

So, while the tech snafu sparked a nationwide scramble, just remember - sometimes, it's just a glitch in the Matrix.

Sydney Tram Standstill: Peak-Hour Strikes to Hit Inner-City Commuters

Sydney’s light rail system is about to experience a serious shake-up, and it isn’t due to upgrades.

All inner-city trams will halt during peak hours from Monday to Friday, as workers take industrial action over pay and conditions.

From 8 am to 10 am and 4 pm to 6 pm, inner-Sydney light rail services will be out of commission, forcing commuters to find alternative transport.

The backbone of this disruption? A fierce standoff between the Rail, Tram, and Bus Union (RTBU) and transport operator Transdev.

Workers are demanding a wage hike that matches the soaring cost of living, with RTBU's David Babineau emphasizing that the offered 18% raise over four years falls short of their 23% demand.

Adding fuel to the fire, staff are also pushing for more sick days. “It’s not just about being ill; workers are fatigued and need this time to perform their jobs safely,” Babineau explains.

In the meantime, buses will step in for trams.

Transdev’s Sydney managing director, Arsene Durand-Raucher, urges commuters to plan ahead or avoid non-essential travel.

Despite the disagreement, both parties apologize for the inconvenience as they try to iron out a new agreement.

With staff on the ground to help manage the chaos, it's clear this commuter drama is set for a bumpy week.

American Express Faces an $8 Million Payout for Credit Card Chaos at David Jones

American Express Australia is hitting the headlines for all the wrong reasons.

The Federal Court has slapped Amex with an $8 million fine after it failed to properly review its target market for co-branded credit cards with retailer David Jones.

Here's the scoop: The Australian Securities and Investments Commission (ASIC) took Amex to court, accusing the company of ignoring the red flags.

By early 2022, high cancellation rates for these credit cards issued in David Jones stores were raising eyebrows - way higher than those applied for online.

Customers were left scratching their heads, unsure if they signed up for a loyalty card or a credit card.

Yet, Amex didn’t hit the brakes on issuing these cards until July 5, 2022.

Sarah Court from ASIC stressed that product providers can’t just set and forget.

They need to ensure their financial products are hitting the right marks and make tweaks when things go south.

Justice Jackman echoed this, emphasizing that Amex should've known better and that the penalty is meant to sting, deterring both them and other financial providers from making similar blunders.

Bottom line? Amex admitted the slip-ups and agreed the penalties were fair. Along with the $8 million fine, they're also picking up ASIC’s tab for the court proceedings.

This ruling serves as a big reminder: financial product issuers need to stay sharp and ensure their offerings match consumer needs.

Aussie Racer Loses $50K in Clever New Scam Tactic

Professional race car driver Veronica McCann fell victim to a crafty scam that saw $50,000 whisked away from her account.

Here’s how it went down:

1. After a meeting left her phone signal-less, McCann received an email from Telstra about a number change.

2. Little did she know, hackers were behind it, taking advantage of Telstra’s initiative for domestic violence support.

3. They impersonated McCann, claiming to have fled an abusive relationship, and managed to get her number changed.

4. With this new number, the scammers accessed her Telstra account and, like dominos, got into her ANZ bank account, swiping $50K before she knew it.

McCann’s quick move to freeze her account was too late; the money vanished within two hours. The silver lining?

ANZ agreed to refund the stolen cash, calling the breach “appalling,” while Telstra hinted that McCann’s identity had already been snatched before their interaction.

With Australians losing $2.7 billion to scams last year, experts stress vigilance, especially against too-good-to-be-true deals, urgent requests, and shady payment methods.

Remember, if scammed, act fast by contacting your bank and reporting to Scamwatch. Stay safe out there!

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

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