Many companies across the world were affected by a cyber outage Friday morning following a software update that went awry. This incident has raised serious concerns about the reliability of software updates and their potential impact on businesses and consumers alike. In a world that heavily relies on technology, disruptions like this can have far-reaching consequences, disrupting daily operations and leading to financial losses.
After cybersecurity company CrowdStrike issued the software update, customers who use Microsoft’s Windows operating system began experiencing trouble. A fix has been "deployed," according to the company. Its CEO, George Kurtz, assured customers that the outage that grounded airlines across the country and disrupted banks and other services was not a cybersecurity attack or a security issue. This statement was aimed at alleviating fears among users who might have thought they were victims of a larger cyber threat.
Among the companies experiencing outages were ADT Security and Amazon, according to the Los Angeles Times. Reports also said that Visa had been affected, but a spokesperson told Newsweek that was incorrect and that Visa maintained its ability to process transactions and was not affected by the CrowdStrike defect. This highlights the confusion and misinformation that can accompany large-scale technological issues, further complicating the situation for businesses and consumers alike.
Users reported on the website Downdetector that their bank cards were being declined and that they couldn’t check the balances for their accounts and gift cards. Users also documented outages at ADP, a payroll and human resources company widely used in the U.S. and worldwide. These issues not only caused inconvenience but also raised questions about the robustness of the systems in place to handle such interruptions.
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"CrowdStrike is actively working with customers impacted by a defect found in a single content update for Windows hosts. Mac and Linux hosts are not impacted," a CrowdStrike spokesperson told Newsweek. This clarification was essential to inform users that the problem was not universal and that appropriate steps were being taken to rectify the situation.
Downdetector also showed a spike in outages at Chase Bank, Charles Schwab, TD Bank, and Bank of America since 2 a.m., but it was unclear if those were caused by the Microsoft outage. This uncertainty can lead to panic among customers who rely on these services for their daily transactions.
"TD and other organizations around the world have been impacted by a global technology disruption," a TD Bank spokesperson told Newsweek. "Teams are working hard to restore all online banking and other impacted systems. For immediate banking needs, TD customers can visit their local TD bank or fully operational ATM. We thank you for your patience." Statements like this are crucial in maintaining customer trust during periods of disruption.
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Newsweek reached out by email to the other banks for comment. The affected banks were in several countries, including New Zealand, South Africa, Australia, India, and Germany. Financial industry professionals warned their customers of the disruption in their markets, particularly while executing a transaction, Reuters reported.
In Australia, the banks NAB, Commonwealth, and Bendigo were disrupted by the outage, according to the Los Angeles Times. The outage also sidelined services at one major bank in South Africa, with customers complaining that they were unable to make payments with their bank card. Reports from New Zealand's National Emergency Management Agency indicated that a worldwide IT outage affected businesses in the country, including banks like ASB and Kiwibank.
Other industries also were affected as well, including Sky News in Britain, which went off the air; phone providers in Australia such as Telstra; and Britain's National Health Service. U.S. media outlets also had problems, with some broadcasters taking to X (formerly Twitter) to alert viewers that there would be no broadcast. The X account @rawsalerts said all Metro train services were suspended in Washington, D.C., early Friday morning because of the outage.
CrowdStrike, which is based in the U.S., has 20,000 customers worldwide, including more than half of the Fortune 500 companies. "This is not a security incident or cyberattack," the CrowdStrike spokesperson told Newsweek. "The issue has been identified, isolated, and a fix has been deployed. We refer customers to the support portal for the latest updates and will continue to provide complete and continuous updates on our website."
"We further recommend organizations ensure they’re communicating with CrowdStrike representatives through official channels. Our team is fully mobilized to ensure the security and stability of CrowdStrike customers," the spokesperson said. This proactive communication strategy is essential for restoring confidence among clients after such disruptions.
Update 7/19/24, 9:15 a.m. ET: This story was updated with additional information and background.
Update 7/19/24, 11:43 a.m. ET: This story was updated with a comment from TD Bank.
Update 7/22/24, 3:49 p.m. ET: This story was updated with a comment from Visa.
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