CrowdStrike issue causes major outage affecting businesses around the world (2024)

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An update by cybersecurity firm CrowdStrike led to a major IT outage on Friday, impacting businesses around the world.

CrowdStrike told NBC that it is in the process of rolling back the update that caused the issue, and later said a fix for the defect had been deployed.

"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," CEO George Kurtz said in a statement on X .

"This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed."

He added that customers should refer to the support portal for the latest updates and work with their CrowdStrike representatives through official channels.

Kurtz apologized to those impacted in an interview on the NBC program "TODAY" early Friday.

"I want to start by saying we're deeply sorry for the impact that we've caused to customers, to travelers, to anyone affected by this, including our company," he said.

"The system was sent an update, and that update had a software bug in it and caused an issue with the Microsoft operating system. And now we are working with each and every customer to make sure that we can bring them back online."

Kurtz added that the update was normal and part of the company's routine process to prevent security risks, but noted that an investigation would be required to see what went wrong.

The confirmation came after widespread reports of technical issues, with many Microsoft users around the world facing an error screen known as the "blue screen of death ."

CrowdStrike shares were down about 11% on Friday, while Microsoft was little changed.

CrowdStrike issue causes major outage affecting businesses around the world (2)

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Watch CNBC's full interview with CrowdStrike CEO George Kurtz

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'A major outage'

Airlines, hospitals and financial services firms were among the many businesses affected.

American Airlines , which describes itself as the world's largest, said a technology issue was affecting "multiple carriers" including American, while the Dutch arm of Air France-KLM said it had been "forced to suspend most" of its operations.

In Great Britain, the Royal Surrey hospital declared a "critical incident" and had to temporarily suspend radiography treatment. The National Health Service in England, meanwhile, said it was experiencing disruptions in the majority of doctors' practices.

Banks and financial companies around the world have reported issues, with German insurance giant Allianz saying it was "experiencing a major outage that is impacting employees' ability to log into their computers. It impacts multiple companies besides Allianz."

NBCUniversal is also being affected by the CrowdStrike outage.

See the latest updates on which companies are affected here.

'unprecedented'

Satnam Narang, senior staff researcher at Tenable, told CNBC on Friday that the outage was having a "profound impact" and was unique in its size and scope.

"The challenge here is that security software — because it's doing its job to protect organizations — it has to have more privileged access to these machines," he said.

"So ... while people may be seeing these as Windows failures, they're looking at it and seeing a little blue screen pop up, it's not actually a Windows issue, it's related to a faulty or bad update from those security software. "

Narang added, "We've never seen anything like this before, it's very unprecedented."

Omer Grossman, CIO at cybersecurity firm CyberArk, said the damage caused by this outage will be "dramatic."

"The glitch is due to a software update of CrowdStrike's EDR product. This is a product that runs with high privileges that protects endpoints. A malfunction in this can, as we are seeing in the current incident, cause the operating system to crash," he said in an emailed comment.

Getting back online is unlikely to be easy, according to Grossman.

"It turns out that because the endpoints have crashed - the Blue Screen of Death - they cannot be updated remotely and this the problem must be solved manually, endpoint by endpoint. This is expected to be a process that will take days," he added .

Disclosure: NBCUniversal is the parent company of NBC and CNBC.

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CrowdStrike issue causes major outage affecting businesses around the world (2024)

FAQs

CrowdStrike issue causes major outage affecting businesses around the world? ›

CrowdStrike has promised to improve how it tests software after its faulty content update for Windows systems caused a mass global IT outage on Friday. The cybersecurity company's mistake resulted in problems for banks, hospitals and airlines as millions of PCs displayed "blue screens of death".

What did the CrowdStrike outage affect? ›

The Microsoft outage led to substantial disruptions across numerous sectors. It resulted in flight delays and cancelations, and affected critical services in hospitals, banks, supermarkets, and millions of other businesses.

What is the CrowdStrike global issue? ›

A massive outage was caused by what was supposed to be a routine update from the cybersecurity company CrowdStrike. A routine software update caused cascading chaos Friday that has engulfed global businesses from airports and banks to retail and law enforcement.

What caused CrowdStrike failure? ›

LONDON, July 24 (Reuters) - A software bug in CrowdStrike's (CRWD.O) , opens new tab quality control system caused the software update that crashed computers globally last week, the U.S. firm said on Wednesday, as losses mount following the outage which disrupted services from aviation to banking.

What was impacted by CrowdStrike? ›

Microsoft has estimated that the incident, which is being described as one of the worst IT outages in history, impacted 8.5m computers around the world. Businesses, banks, hospitals and airlines were among the worst-hit, with some still struggling to fully restore their systems.

What is the global outage affecting? ›

Major global IT outage grounds flights, hits banks and businesses around the world. The problem was caused by a “defect found in a single content update for Windows” from the cybersecurity company CrowdStrike.

Why is CrowdStrike down so much? ›

CrowdStrike's stock falls further as it draws downgrades in wake of incident. CrowdStrike Holdings Inc. shares were extending their declines Monday as the effects of the company's faulty software update continued to disrupt global technology and as at least two analysts downgraded the cybersecurity stock.

Who caused the global outage? ›

Outage caused by a CrowdStrike update

Related article What is CrowdStrike, the company linked to the global outage? The company said the outage was not caused by a security incident or a cyberattack, but rather a software defect.

What was the cause of the IT outage? ›

The global outage stems from an update CrowdStrike made to its marquee cybersecurity platform, a cloud-based software product called Falcon.

What is going on with CrowdStrike? ›

Bottom line: An issue with the software that checks CrowdStrike updates are working properly meant that the firm missed a problem with a content file. The update was pushed out to Windows systems, causing them to crash.

How much did the CrowdStrike outage cost? ›

All told, the outage may have cost Fortune 500 companies as much as $5.4 billion in revenues and gross profit, Parametrix said, not counting any secondary losses that may be attributed to lost productivity or reputational damage.

What devices were affected by CrowdStrike? ›

In a blog post, Microsoft revealed just how widespread the issue has been: “We currently estimate that CrowdStrike's update affected 8.5 million Windows devices, or less than one per cent of all Windows machines.” The impact has been felt far and wide despite the figure being a fraction of the total number of Windows ...

How much money was lost because of CrowdStrike? ›

CrowdStrike lost $20 billion in market value after the global tech outage.

Does the US government use CrowdStrike? ›

Crowdstrike is in wide use across federal agencies and it is a key vendor on the governmentwide Continuous Diagnostics and Mitigation cybersecurity support services contract.

What big companies use CrowdStrike? ›

Customers of Crowdstrike
CustomersEmployee RangeCountry
Nuance Communications, Inc.10,000+United States
Amazon Web Services10,000+United States
Home Depot, Inc.10,000+United States
OSI Group LLC10,000+United States
6 more rows

Who is behind CrowdStrike? ›

Based in Austin, Texas, the company was founded in 2011 by George Kurtz, Dmitri Alperovitch and Gregg Marston. Both Kurtz and Alperovitch had extensive backgrounds in cybersecurity, working at companies like McAfee. Two years after its founding, CrowdStrike launched its signature product, the Falcon platform.

What did the Microsoft outage impact? ›

Banks, airlines, television networks and health systems around the world that rely on Microsoft 365 apps were hit by widespread outages early Friday linked to the company CrowdStrike.

What did the CrowdStrike update do? ›

SAN FRANCISCO, July 19 (Reuters) - Security experts said CrowdStrike's (CRWD.O) , opens new tab routine update of its widely used cybersecurity software, which caused clients' computer systems to crash globally on Friday, apparently did not undergo adequate quality checks before it was deployed.

Was American Airlines affected by CrowdStrike? ›

Tuesday marks day five of the tumultuous travel aftershock following a software issue with CrowdStrike caused by a faulty software update, which interrupted the check-in process and crew tracking for multiple major airlines including American Airlines, United and Delta, as well as tech disruptions at hospitals, banks ...

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