Faulty CrowdStrike Update Disrupts Banks, Airlines

CrowdStrike has stated that a solution exists and that the global disruption is not a cyberattack

In what has already become one of the most pervasive IT disruptions in recent years, businesses worldwide are reporting IT outages, including Windows “blue screen of death” errors on their computers. The outage, associated with a software update from the renowned cybersecurity firm CrowdStrike, has impacted computers operating Microsoft Windows in various sectors, such as airlines, banks, retailers, brokerage houses, media companies, and railway networks.

According to online discussions, the travel industry is most severely affected.

In an X post, George Kurtz, the chief executive of CrowdStrike, verified that the outage was caused by a “defect” in a content update for Windows hosts. Kurtz also ruled out a cyberattack. He also stated that the company was implementing a solution and that Mac and Linux hosts were unaffected.

“CrowdStrike is assisting customers affected by a defect discovered in a single content update for Windows hosts,” Kurtz stated on X that Mac and Linux hosts are unaffected.

“This is not a cyberattack or security incident.” The problem has been identified and isolated, and a solution has been implemented. We will continue to provide comprehensive and continuous updates on our website and refer customers to the support portal for the most recent information. We also advise organizations to ensure that they are communicating with CrowdStrike representatives through official channels. Kurtz stated, “Our team is fully mobilized to guarantee the security and stability of CrowdStrike customers.”

An early Friday post on CrowdStrike’s support forums (accessible only with a login) also acknowledged the issue, stating that the company had received reports of failures related to a content update. CrowdStrike noted that the incident reports were “linked to the Falcon Sensor,” its cloud-based security service defined as “real-time threat detection, simplified management, and proactive threat hunting.”

In addition, a moderator of the CrowdStrike subreddit reported that the company was cognizant of “widespread reports” of blue screen errors on Windows devices across numerous versions of its software. The message stated that the organization was investigating the root cause.

The security firm did not promptly address a request for comment.

Microsoft began to identify issues in the early hours of July 19. It is presently noted on its Service Health page that Microsoft 365 for Consumers has been restored. Nevertheless, the service health status of its cloud services for business indicates that enterprise applications are still experiencing disruption.

“We are cognizant of an issue affecting Windows devices due to an update from a third-party software platform.” A Microsoft spokesperson informed TechCrunch that they expect a resolution to be forthcoming.

The Microsoft spokesperson stated that the extensive outage caused by the CrowdStrike update was unrelated to the previous Microsoft 365 service disruption that occurred overnight from July 18 to 19.

There will be a plethora of inquiries regarding the resilience of cloud services or the potential deficiency thereof. Specifically, how can a single update result in such a significant global slowdown?

Goldman Sachs analysts wrote in a research note on Friday that cybersecurity products must meet a higher standard of reliability and security in customer deployments than other technology products due to their mission critical nature and active attacks by adversaries. “We think that this will reinforce the industry’s barrier to entry and the necessity of industry-leading update, outage, and customer service protocols, ultimately benefiting companies with significant scale.”

Problems with check-in and ticketing systems are being reported by airlines and airports in Germany, France, the Netherlands, the United Kingdom, the United States, Australia, China, Japan, India, Singapore, and Taiwan. This has led to flight delays and significant confusion at airports.

Experts informed TechCrunch that the outages may impact the climate, prompting U.S. federal airspace officials to declare a nationwide ground halt of air traffic on Friday. The airline chaos and disruption also impacted others in other ways.

Disruptions were reported by the London Stock Exchange in the United Kingdom. On X, numerous medical offices in the United Kingdom reported that the disruption affected the National Health Service’s clinical computer system, which is responsible for scheduling appointments and storing medical records.

Additionally, certain 911 and non-emergency call centers in the United States appear to be affected. According to a post by Alaska State Troopers, numerous call centers of this nature were “not functioning properly throughout the state of Alaska.”

David Rhodes, the executive chairman of Sky News, tweeted that the company encountered difficulties broadcasting live this morning due to the outage. The New Zealand Herald also reported that the issue impacted banking services in the country, and several Indian news channels reported experiencing broadcasting difficulties.

The issue has resulted in numerous employees of various companies being unable to activate their computers. The outage occurred immediately after Microsoft confirmed service issues with its Microsoft 365 apps late on Thursday, which impacted numerous airlines, including Delta and United. According to Microsoft’s services status page, the complications are currently resolved.

Amid the confusion, misinformation has been disseminated, such as the claim that the Las Vegas Sphere was displaying a blue screen of death.

On Friday morning, businesses and security experts began to blame CrowdStrike for the outage before the company acknowledged its involvement. CrowdStrike’s software is utilized by millions of individuals across enterprises to manage security on both devices and servers. According to experts who spoke with TechCrunch, competitors may also benefit from the situation.

According to its website, CrowdStrike accounts for nearly 60% of Fortune 500 companies and more than half of the Fortune 1,000 among its clientele. Eight of the top 10 financial services firms and an equal number of prominent technology companies utilize it. Additionally, it maintains a substantial and extensive presence in the healthcare and manufacturing sectors, providing services to six and seven of the top 10 companies in each sector, respectively.

At the time of this writing, CrowdStrike’s market capitalization was $73.6 billion, and its shares were down approximately 12% at the close of trading on Friday.