| Y2k Essay, Research Paper
Y2K CRISIS
On January 1, 1999, the Year 2000 computer crisis will
begin. On January 1, 2000, there is a good possibility computers
around the world will crash, freezing systems for hours, days,
weeks, months or even years. The public just does not seem to
understand the gravity of this situation. Consider these actual
events: In November 1996, Mike Yarsike, who owns a gourmet food
market in Warren, Michigan ran a customer’s credit card through
his machine. Ten computerized cash registers in the store locked
shut for four hours; fifteen months later, the system was still
experiencing glitches. The credit card has an expiration date in
the year 2000. An appointment clerk in a medical organization
attempted to make an appointment for a patient for January 2000,
the entire computer network that serves 75 clinics and three
hospitals shut down for hours with continuing problems. These
kinds of computer glitches, called ’sightings,’ interrupt the
normal flow of business and are occurring throughout the world
whenever the date being entered is 2000 or beyond. There are
millions of computer software programs that cannot read any dates
beyond 1999 and experts in the field have finally realized that
not even Microsoft can offer a simple one-shot solution. Instead,
there are now legions of programmers across the world correcting
the problem, line by tedious line at enormous costs to both
governments and companies (Rock and Reynolds, 1998).
The Year 2000 Computer Bug, also known as the Millennium Bug
and as the Y2K bug sounds absurd but it is real and it could
cause mayhem in the world. Most computer programs have a
two-digit date field, thus when the year 1998 is keyed in, the
computer reads only “97.” When the year 2000 arrives, it will
register in the computer program as “00,” and it will translate
that to 1900, not 2000 (Bordwin, 1998). The two-digit format,
originally intended to save time and space on the program leaves
the computer unable to distinguish between 2000 and 1900 or 2001
and 1901. The ambiguity can cause the system or application
program that uses dates to perform calculations comparisons, or
sorting to generate incorrect results. Errors could occur in
calculating truth-in-lending/savings disclosures, calculating
interest, or determining amortization schedules. Automated teller
machines might assume that any bank card with the year 2000 on it
is expired. These kinds of errors may well expose the financial
institution to financial liability. Credit unions interface with
numerous other computer systems that belong to payment centers,
wire transfer systems, automated clearing houses, check clearing
houses, credit card merchants, automated teller machine networks,
electronic data exchange systems and more. These other systems
increase the vulnerability of the credit unions; they can
incorporate errors into the credit union’s records and systems
(MountJoy, 1998).
These are not the only institutions that will be affected.
Telephone systems may shut down as will security and alarm
systems, fax machines, elevators and even electricity. Anything
that is connected to a computer, that depends on a computer is
vulnerable (MountJoy, 1998). The general public, the average
person is for the most part unaware of the devastating results
that are possible due to the Year 2000 problem.
Experts say this will cause computers to crash and/or to
create a variety of problems, such as including bogus data or
nonsensical results in the program or records. The result could
be, and in fact, is likely to be, erroneous data for an
individual’s stock portfolio, bank accounts, social security
checks, in fact, the financial institution could lose all records
of individual members. It could also mean loss of power, loss of
all services that we take for granted in our normal everyday
lives. The potential and probable problems are so vast that books
have been written about it and dozens of Internet sites exist
that give information about how to protect yourself. For those
companies who have not yet begun to correct the problem, it is
already too late. There is not enough time now nor are there
enough trained professionals to check millions or billions of
lines of computer code to identify and correct the problem. The
results are legal issues, management problems and safety problems
(Bordwin, 1998).
Legal suits have already been filed because of the problem.
In June 1997, a supermarket operator filed suit against the
manufacturer of its computer system and the company that sold
them the system. The computer could not process credit cards with
an expiration date in 2000 or beyond. The store lost customers.
In November 1997, Dutch airline KLM issued a warning: it may
ground some aircraft on January 1, 2000 if certain routes are
found to be unsafe because of Y2K bugs. A spokesman said that KLM
has a complex web of interlinking computer systems that includes
radar and air-traffic control systems. A computer glitch could
cause a plane crash, a collision. Both Lufthansa and Northwest
have also issued the same alert. This brings up two significant
problems: first, safety and second, canceled flights leave
travelers stranded and disrupt business or economics. (Bordwin,
1998).
There are some experts that are predicting that 15 percent
of businesses will not survive the Y2K, they will go bankrupt. It
isn’t even enough for a business to solve their own Millennium
problem, if all the computers with which they are linked are also
not corrected just networking into them could cause problems.
Reuters, the U.S. Controller of the Currency, the chairman of the
FDIC and the chairman of the Stockholm Stock Exchange have all
addressed the interdependency of businesses. Bengt Ryden, of the
Stockholm Stock Exchange said: “it is not sufficient merely to
have put one’ s own house in order. All the work one does may be
for naught, in terms of avoiding the fall-out from the Year 2000
Bomb, if affiliates, suppliers and customers have not, likewise,
had the necessary review and modifications performed. This
dimension of the problem seems insufficiently understood”
(Bordwin, 1998; p.NA). The breakdown between one business and
another because one of them has not corrected the problem will
lead to more lawsuits and business shut-downs.
The nation’s credit unions are not prepared yet to meet the
new millennium. A GAO report stated: “If the Year 2000 problem is
not addressed in time. Credit Union computer systems-which affect
billions of dollars of assets and transactions-will be unable to
readily process transactions or produce accurate information.
According to NCUA. without property functioning systems, credit
unions like other financial institutions face the potential of
failure” (MountJoy, 1998; p. NA). The report went on to say that
the NCUA is behind schedule in assuring all the credit unions in
the U.S. will have the problem corrected in time. It must be
remembered than when any financial institution fails, it can lead
to financial ruin for some of its members. These are serious
economic problems associated with Y2K. Assets in credit unions
total $326 billion. Nearly 25 percent of the American population
belong to a credit union and these institutions account for 2
percent of the total financial services in this country
(MountJoy, 1998).
The Y2K problem is serious; it can result in mayhem and
devastation for every single person in this world. Besides the
economic, legal and safety problems cited here, it is likely to
lead to an interruption in every person’s life for at least hours
and possibly years.
BIBLIOGRAPHY
Bordwin, Milton. (1998, February). The Millennium Bug Gets
Ready to Bite. Management Review, Vol. 87.
Harney, John. (1998, January). Dancing to an international
date change. HP Professional, Vol. 12, pp. 39(4).
MountJoy, Gary N. (1998, January 7). Year 2000 Computing
Crisis – Actions Needed To Address Credit Union Systems’ Year
2000 Problem. Washington, D.C.: Government Accounting Office
Report.
Rock, Andrea and Reynolds, Tripp. (1998, February). The Year
2000: The Year 2000 Bug It’s time to check your investments,
funds, bank, credit cards, home computer and more to avoid the
worst of. Money, pp. 48+.
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