On June 19, global cybersecurity company CrowdStrike sent out a routine update to computers which unbeknownst caused damage worldwide.
The software update was deployed to Microsoft Windows computer systems in the early morning, but the first signs of a problem appeared in Alaska’s and Arizona’s 911 service outages, as well as technology issues in hospitals. As the day progressed, countless other systems across business, transportation, healthcare, technology and government sectors were impacted by the update.
Microsoft estimated that the update impacted more than 8.5 million Windows systems worldwide, resulting in the display of a “blue screen of death” on the company’s computers. The display indicates a fatal error that prevents the operating system from running properly and renders the computer unusable. When the malfunction reached corporate servers, IT personnel had to manually restore systems using a time-consuming workaround provided by CrowdStrike, which left companies without internet access for hours.
The restoration process had a significant impact on many industries, including air travel. There were 3,000 flight cancellations and 11,000 flight delays across the globe. The outage also affected the business of major air carriers like American Airlines, United and Delta, resulting in record amounts of cancellations and delays stretching up to four days.
As air traffic slowed, the outage prolonged the processing times for travelers at the United States-Mexico border. According to Reuters, the number of lines to enter the United States from the Mexican border city of Ciudad Juarez increased dramatically, hindering traffic. In the hours following the outage, Customs and Border Protection released a statement addressing the backup, stating that they were “proactively working … to restore [their] systems to full capacity.
The consequences of the outage also affected the healthcare industry. According to NPR News, individuals struggled to receive medical care because crucial patient files were inaccessible to doctors. Doctor appointments and virtual visits were canceled, critical surgeries were postponed and emergency care was often unavailable.
Many businesses, including financial institutions, law firms and entertainment providers, experienced temporary shutdowns in the aftermath of the outage. The shutdowns paused major aspects of the nation’s economy, leaving financial institutions and regulatory agencies with revenue losses. The outage is estimated to have cost up to $1 billion in global damages.
Although the effects of the outage were widespread, Sidwell Friends avoided major complications. Senior Gabriel Abrams, co-leader of the TechTalk club, stated that the Sidwell Friends community “will [not] change how [they] use technology on a day-to-day basis.”
“I think that corporations and the government will spend a lot of resources on developing systems that are less prone to crashes,” Abrams said in an interview.
CrowdStrike was heavily affected by the faulty update — its stock decreased 32 percent and lost $25 billion in market value over the following 12 days. Microsoft’s stock value also dropped significantly following the incident.
NBC reporter Tom Castello suggested that multiple lawsuits against CrowdStrike will ensue as companies have suffered substantial financial losses due to the global outage. Individuals who were impacted during work, travel or in receiving healthcare are likely to participate in lawsuits against involved parties.
In the wake of the outage, Delta Air Lines announced that it is seeking $500 million in damages against CrowdStrike and starting to “rethink Microsoft” altogether. Moreover, CrowdStrike shareholders filed a class-action lawsuit against the company on allegations of defraudment and misleading statements about the software’s validity.
The Cybersecurity and Infrastructure Security Agency denied any malicious involvement in the outage. They emphasized that they warned the public about “observed threat actors taking advantage of this incident for phishing and other malicious activity” as the update may have compromised software.
According to Science Media Centre, the outage prompted many to realize how a slight error in a line of code can significantly impact a fast-paced, corporate-dominated economy.
