Cybersecurity firm CrowdStrike's shares took a plunge this Friday after one of its security updates caused a global IT outage, disrupting multiple airports, broadcasting, and medical operations.
CrowdStrike closed on an 11.1% drop at 304.96 per share as news outlets confirmed that the outage that its software update caused many Windows computers to be hit with the "Blue screen of death suddenly."
(Photo : Stefano Rellandini/AFP via Getty Images)
The stock drop came amid CrowdStrike's biggest share growth in six months as cyberattacks continued to surge globally since last year.
CrowdStrike IT Outage Not a 'Cybersecurity Incident,' CEO Claims
Microsoft, which allows CrowdStrike to provide antivirus services to Windows computers, earlier reported that the outage also affected its Azure cloud services and Microsoft 365 suite of apps.
CrowdStrike CEO George Kurtz already clarified that the outage was not a cybersecurity incident but rather was due to "a defect found in a single content update for Windows hosts."
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. This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed. We…
— George Kurtz (@George_Kurtz) July 19, 2024
As of writing, most impacted computers remain down, although CrowdStrike is already working on the technical update to resolve the issue.
Also Read: Microsoft Teams Suffer Outage, Limits Access to Multiple Users
CrowdStrike IT Outage Halts Digital Operations
With most of their computers effectively unusable, many businesses had to resort to pen-and-paper to continue some operations, while most had to either delay or cancel schedules due to the outage.
Australia, in particular, has been heavily impacted by the outage as most of its businesses use Windows computers or the CrowdStrike software for their IT networks.
Similar problems are reported across France, which is hosting the Summer Olympics this year, and the UK.
Several Asian countries also confirmed service disruption, although most government units claimed not to have been affected.
Due to the scale of the outage, experts expect that several companies may soon want to hold Microsoft and CrowdStrike financially liable, similar to the response to the cyberattack on car retailers in North America last month.
Related Article: Why Do More Online Platforms Suffer Global Outages Today?
