COVID-19 shouldn't kill cash!

Many people who do have a bank account are without ready access to the internet. A study by Which? found that nearly 3,000 bank branches closed across the UK in the three years up to 2018. ATM cash-dispensers disappeared at a rate of 500 per month in the first half of 2018. Where will the technology have-nots go for their money?

Is Cashless Good for Us?

Some law enforcement experts claim that cashlessness is better for society because it cuts down money-laundering and tax evasion. The risk of losing money, they say, is lower with cashless payments because credit cards and mobile wallets can be blocked if stolen. Lost cash is largely impossible to recover.

Other experts point out that the data we generate when making cashless transactions ensures that we receive more targeted and helpful marketing information.

This is all very well, but might the supposed benefits be outweighed by the disadvantages?

For example, diverting digital money may actually be easier and cheaper for criminals than stealing cash. Digital thievery can be done without the perpetrator leaving home. The risk of getting caught may be lower because of the ease with which thieves build false digital identities and locations. Taking the time to track them puts serious strains on already stretched police resources. (And studies show that most people aren't confident that police will follow through when the amounts stolen are small.)

Hacking, phishing and spoofing are all highly effective criminal practices. In December 2011, Chinese hackers reportedly gained access to 15 to 20 million accounts within their nation's most popular lifestyle and payments app, Alipay.

With phishing, targets are contacted by email, telephone or text message, by people claiming to represent legitimate institutions. They're lured into providing sensitive data such as banking and credit card details and passwords.

Spoof websites are also popular among scammers. A 2014 study described how Chinese hackers inserted spoofing malware into what looked like genuine security updates for cashless systems. The spoofing enabled hackers to obtain users' real names, identity numbers, account passwords and, yes, their money.

Cyber-criminals often steal small amounts from many accounts at once. They net huge rewards, knowing that there's almost zero chance of their crimes being investigated, much less solved.

Cashless: More Harm Than Good?

What other so-called cashless "blessings" might turn out to be curses in disguise?