{"id":30075,"date":"2024-07-23T18:38:26","date_gmt":"2024-07-23T18:38:26","guid":{"rendered":"https:\/\/www.oxfordcorp.com\/?p=30075"},"modified":"2024-08-07T14:42:02","modified_gmt":"2024-08-07T14:42:02","slug":"worlds-biggest-it-outage-caused-by-a-cybersecurity-software-update","status":"publish","type":"post","link":"https:\/\/www.oxfordcorp.com\/nl-d\/insights\/industry-commentary\/worlds-biggest-it-outage-caused-by-a-cybersecurity-software-update\/","title":{"rendered":"&#8216;World\u2019s Biggest IT Outage&#8217; Caused by a Cybersecurity Software Update"},"content":{"rendered":"<p><span data-contrast=\"auto\">On Thursday, July 18, a <\/span><a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/mass-cyber-outage-airports-businesses-broadcasters-crowdstrike-rcna162664\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">massive IT outage<\/span><\/a><span data-contrast=\"auto\"> affecting airlines, hospitals, law enforcement, theme parks, and other businesses was \u201cheard around the world,\u201d setting off a tech frenzy that caused widespread issues in operations. By the early morning hours of Friday, July 19, the overwhelming impacts of the tech glitch were apparent, resulting in grounded flights, commuter delays, canceled non-emergency surgeries and procedures, interrupted broadcasts, downed cash registers, and more.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Oddly, it wasn\u2019t a cyberattack or other security incident that led to the global IT crisis. In an ironic turn of events, a <\/span><a href=\"https:\/\/www.nbcnews.com\/business\/business-news\/crowdstrike-global-outage-explained-rcna162683\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">cybersecurity firm<\/span><\/a><span data-contrast=\"auto\"> is behind what has been termed \u201cthe world\u2019s biggest IT outage.\u201d A security software update gone wrong plunged the tech realm into chaos. Leading cybersecurity company CrowdStrike delivered this faulty update. According to NBC News, \u201c[CrowdStrike] is used by many of the world\u2019s Fortune 500 companies, including major global banks, healthcare, and energy companies.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The cybersecurity vendor differentiates itself from other cyber firms with its \u201cendpoint security\u201d approach. This approach uses cloud technology to protect devices connected to the internet versus a more traditional approach of applying the same cyber protection to backend server systems. CrowdStrike\u2019s Falcon product was the culprit, and Windows operating systems took the hit. <\/span><a href=\"https:\/\/time.com\/7000476\/microsoft-it-outage-crowdstrike-role-what-happened-explanation\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">CrowdStrike acknowledged fault<\/span><\/a><span data-contrast=\"auto\">, with CEO George Kurtz issuing a public apology. Kurtz stated that the update \u201chad a software bug in it\u201d that caused an issue with the Microsoft operating system. Mac and Linux operating systems were not impacted.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Microsoft VP of Enterprise and OS Security David Weston released a statement on Saturday, July 20, stating that while the percentage of Windows machines affected was small (less than one percent), \u201c<\/span><a href=\"https:\/\/blogs.microsoft.com\/blog\/2024\/07\/20\/helping-our-customers-through-the-crowdstrike-outage\/?utm_campaign=mb&amp;amp;utm_medium=newsletter&amp;amp;utm_source=morning_brew\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">the broad economic and societal impacts<\/span><\/a><span data-contrast=\"auto\"> reflect the use of CrowdStrike by enterprises that run many critical services.\u201d Weston was referring to the estimated 8.5 million Windows devices afflicted by the botched software update, leaving users staring at a blue error screen, often called the \u201cblue screen of death,\u201d rendering PCs useless until the issue is fixed.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The <\/span><a href=\"https:\/\/www.nbcnews.com\/news\/us-news\/mass-cyber-outage-airports-businesses-broadcasters-crowdstrike-rcna162664\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">effects of the major disruption were catastrophic<\/span><\/a><span data-contrast=\"auto\">, resulting in 9,650 canceled flights over the weekend, according to news reports. Just over a quarter of those cancellations (2,619) occurred as late as Sunday. US airline Delta suffered the biggest losses. Additionally, Alaska State Troopers announced a statewide dismantling of 911 and nonemergency phone contact. Even as companies are coming back online, the impacts may linger.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">CrowdStrike is also facing negative impacts. By Monday, July 22, <\/span><a href=\"https:\/\/www.msn.com\/en-us\/money\/savingandinvesting\/crowdstrike-it-outage-microsoft-estimates-impact-at-1-of-windows-machines\/ar-BB1qhwSt?ocid=BingNewsSerp\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">CrowdStrike stock fell 11.5%<\/span><\/a><span data-contrast=\"auto\"> and it\u2019s been downgraded to \u201chold from buy\u201d by Guggenheim and BTIG. Additionally, Oppenheimer removed the cybersecurity firm from its \u201c2024 Top Picks\u201d list. Checking back in on Tuesday, July 23, &#8220;&#8230;it&#8217;s now down <a href=\"https:\/\/finance.yahoo.com\/news\/why-crowdstrike-stock-crashed-again-153938138.html\" target=\"_blank\" rel=\"noopener\">more than 30% from it&#8217;s all-time high<\/a> hit earlier this month.&#8221; The failed update debacle is currently <a href=\"https:\/\/finance.yahoo.com\/news\/crowdstrike-cso-blasts-own-failure-123840189.html\" target=\"_blank\" rel=\"noopener\">driving up business for competitors<\/a>, with SentinelOne seeing a 20% gain in its stock since Friday. Business and market analysts suspect that there may be liability claims to come out of this, too, with customers seeking compensation for damages. <\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.msn.com\/en-us\/money\/technology\/microsoft-blames-eu-rules-for-world-s-biggest-it-outage\/ar-BB1qpqRp?ocid=entnewsntp&amp;pc=U531&amp;cvid=481e5b77065a40698006544eb04bbbde&amp;ei=248\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Microsoft blames EU rules<\/span><\/a><span data-contrast=\"auto\"> for its part in the outage, claiming that a 2009 agreement with the European Commission restricted them from making any security changes that would\u2019ve blocked the flawed update. The software giant is referring to an agreement meant to encourage competition and consumer choice by eliminating the company\u2019s unfair advantage in the marketplace, particularly as a web browser. Similarly, Apple has concerns over the future safety of iPhones as another European law called the <\/span><i><span data-contrast=\"auto\">Digital Markets Act<\/span><\/i><span data-contrast=\"auto\"> is forcing the tech company \u201cto allow alternative app stores and web browser engines\u201d on its popular devices.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">CrowdStrike released a fix for the major IT disruption, but for many computer systems it was too late, requiring manual resolution for restoration of services. <\/span><a href=\"https:\/\/www.oxfordcorp.com\/insights\/blog\/spotlight-on-carol-riegert-senior-vice-president-cio\/\" rel=\"noopener\"><span data-contrast=\"none\">SVP and CIO of Oxford Global Resources Carol Riegert<\/span><\/a><span data-contrast=\"auto\"> said, \u201cEvery impacted business is going to need help on the restoration. It is not something that will get resolved by the vendors. If the computers have already been impacted, it requires manual intervention on each impacted system.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Riegert concluded, \u201cThis was a real test for business continuity and disaster recovery across the globe. Emergency preparation in the world of cloud apps has changed BC\/DR testing and planning and should be re-evaluated to ensure cloud app recovery is part of the recovery plan.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A simple software update turned into the world&#8217;s largest IT outage, affecting various industries worldwide.<\/p>\n","protected":false},"author":22,"featured_media":30076,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[262],"tags":[266],"category-tag":[],"class_list":["post-30075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-commentary","tag-consumer-and-industrial-financial-services-healthcare-life-sciences-public-sector-technology-communications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>- Oxford Global Resources<\/title>\n<meta name=\"description\" content=\"A simple software update turned into the world&#039;s largest IT outage, affecting various industries worldwide.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oxfordcorp.com\/insights\/industry-commentary\/worlds-biggest-it-outage-caused-by-a-cybersecurity-software-update\/\" \/>\n<meta property=\"og:locale\" content=\"nl_BE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"&#039;World\u2019s Biggest IT Outage&#039; 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