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Cyber Attack on Ontario Cannabis Store (OCS) – Cannabis News, Lifestyle
The Ontario Cannabis Store (OCS) has been the victim of another cyberattack, this time leaving retailers unable to process their orders or have their orders shipped.
Ontario Cannabis Store (OCS) Latest Cyber Attack
Unlike the previous May 11 cyberattack, OCS said customer data was not compromised. Instead, the August 5 attack targeted OCS’ external distribution center, Domain Logistics.
In a statement, OCS said: “However, as a precautionary measure to protect OCS and its customers, the decision was made to suspend operations of Domain Logistics until a full forensic investigation could be completed.”
The OSC monopoly
Despite assurances from the Ontario Cannabis Store, the cyberattack is likely to affect customers shopping online at the OCS website. As for the 1,333 or so cannabis stores across Ontario, they don’t have a choice.
The OCS has a government-backed monopoly over the distribution of cannabis. However, bureaucrats only “check” the work of domain logistics. Domain Logistics is a private company contracted by the OCS. Although so-called “public-private partnerships” are the norm in contemporary Western society, economists have historically labeled such state-business relationships a kind of economic fascism.
Cyber Attack On Ontario Cannabis Store (OCS) Means Free Shipping
The shelves at your favorite cannabis store could be empty this week as the OSC says the cyberattack will cause delays “until further notice”.
But “as a goodwill gesture” the OCS will waive retailers’ delivery fees until September 30. Also, between September 1st and March 31st, 2023, a minimum of one transaction fee of $500 per deal will be waived.
Why retailers pay a $500 “handling fee” in the first place is a better question.
OCS and Domain Logistics have not mentioned how soon deliveries will resume.
Are distribution centers necessary?
The recent cyber attack on the OCS raises an excellent question. Are distribution centers necessary at all? A farm-to-table approach is gaining popularity across the country. Also, many alcohol-based distribution models do not require distribution centers.
When Canada first legalized cannabis, IBM Canada proposed that governments track cannabis using a blockchain system. Blockchains act as effective peer-to-peer ledgers. If we minimize most of what OCS does, Ontario would not need the central hub.
Can the OCS handle this task without blockchain? Tracking the movement of cannabis products throughout Ontario’s economy is a significant task. Aside from funneling more taxpayer dollars into the black hole, the OCS needs radical readjustments to make itself efficient.
A blockchain model tracks cannabis using built-in redundancy. It increases system reliability without a high cost to Ontario taxpayers.
If Ontario needs to have the OCS, which will inevitably fall victim to another cyberattack, the OCS headquarters should house the blockchain servers. His duties should be to issue various tokens for licensees. A blockchain can use individual tickets to track cannabis sales from the LP to the retail store.
Treating cannabis like alcohol and tobacco
Governments treat cannabis like alcohol and tobacco in Canada. A social evil that they allow. Ergo, the government’s strict rules, taxes, fees and regulations are justified. But after yet another cyberattack on the Ontario Cannabis Store, does anyone still believe this fairy tale?
With legalization, the Ontario government (first under the provincial Liberals, then the Conservatives) created an entirely new regulatory body. They built and rented cannabis-specific storage facilities and central storage locations. All of this is unnecessary and costly to Ontario cannabis users and taxpayers.
And that’s what they have to show: another OSC cyber attack.
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