On Friday, July 19, various industries worldwide are grappling with the largest IT incident in history. The aviation industry has been severely impacted, leading to flight cancellations. Additionally, sectors such as finance, hospitals, and even the US Department of Justice and emergency services have experienced varying degrees of disruption.
This global IT failure has also disrupted public transportation connections, affecting business operations and causing interruptions in television broadcasts.
Here are six key points you need to know:
This incident was partially caused by a software update released by the cyber security company CrowdStrike on Microsoft Windows systems.
Warnings issued by CrowdStrike to customers, reviewed by Reuters, indicate that their “Falcon Sensor” software is causing crashes on Microsoft’s Windows systems, resulting in the appearance of the infamous “blue screen of death” for users worldwide.
CrowdStrike informed customers earlier on Friday that engineers are actively working to resolve the issue.
CrowdStrike’s CEO mentioned that corrective measures have been deployed.
Microsoft stated that the root cause of the malfunction has been addressed, but residual impacts continue to affect some services.
Global banks, medical services, and critical infrastructure have all been impacted by this incident.
Airlines have been hit the hardest, with airports and airlines around the world issuing warnings about flight delays and cancellations, resorting to manual check-ins, and some airports halting flight operations altogether.
A spokesperson for Berlin Airport informed Reuters that all flights are temporarily grounded. Eurowings, a subsidiary of Lufthansa, announced the suspension of domestic flights in Germany and flights to and from the UK until 3 PM GMT.
Flight tracking software FlightAware data revealed that as of 9:55 AM US Eastern Time on Friday, over 1,384 flights in and out of the US had been canceled, with at least 39 cancellations at Philadelphia International Airport.
Banks and other financial institutions from Australia to India and South Africa have issued warnings to customers about service disruptions, while the London Stock Exchange Group reported malfunctions in their data and news platform, Workspace.
A spokesperson for the White House National Security Council informed CNN that they are investigating the issue and its impact.
According to a White House official, President Biden has been briefed on the matter, and the government is in communication with CrowdStrike and affected entities. Additionally, Biden’s team is engaging across departments to stay updated and be prepared to provide necessary assistance.
As reported by the UK’s PA Media, the UK government has convened an emergency meeting to address the problems caused by this IT incident.
Cyber security expert Troy Hunt stated that the global event on Friday, causing disruptions in airlines, businesses, and emergency services, could potentially be the “largest IT failure in history.”
Hunt shared on social media platform X, “I don’t think it’s premature to call this potentially the biggest IT event in history.”
He added, “This is essentially our Y2K bug crisis concerns playing out, only this time it’s real.”
An internal memorandum reviewed by CNN revealed that the US Department of Justice is experiencing some effects from the technical disruption caused by CrowdStrike.
The memo indicated that the Department of Justice is seeking solutions, but warned employees that the issues with CrowdStrike are “very serious and there is currently no anticipated resolution time.”
While communication on mobile phones and tablets remains unaffected, some applications used by the department, such as Microsoft Office programs, may be inaccessible to users.
The Department of Justice reminded users on Friday that they are one of the global entities and government users affected by the incident.
Economic research firm Capital Economics conducted an initial assessment of the widespread impact of this IT incident.
“Although the situation remains very uncertain, we do not expect significant effects on the macroeconomy or financial markets at present,” wrote Jennifer McKeown, Chief Global Economist at the consultancy firm, in a report.
“Industries with robust IT support systems are experiencing only minor and temporary impacts. This may explain why financial markets have been largely unaffected so far… Another reason for minimal market impact is that the founder and CEO of CrowdStrike has already ruled out the possibility of the incident being related to a cyberattack. Hence, the risk of prolonged disruptions is low,” she stated.