Global IT Outage Causes Chaos Across Multiple Industries

A significant IT outage has disrupted operations across the globe, affecting various industries including airlines, banking, media, and

Arslan Butt•Friday, July 19, 2024•2 min read

Global IT Outage Causes Chaos Across Multiple Industries

A significant IT outage has disrupted operations across the globe, affecting various industries including airlines, banking, media, and emergency services in countries like the U.S., U.K., Australia, Europe, and India. The outage, which began on Friday, has halted flights, taken broadcasters off-air, and crippled banking and healthcare systems.

The first signs of trouble emerged when tech giant Microsoft reported issues with its Microsoft 365 app and other services. The problem rapidly escalated, impacting banks, payment gateways, stock exchanges, and emergency medical services across several nations. The Australian government has called for a national emergency meeting, while other countries are scrambling to restore normalcy.

Airlines were among the hardest hit, with United Airlines, American Airlines, Ryanair, and Akasa Air experiencing operational difficulties, leading to suspended flights. Major airports, including Delhi Airport and several in Europe, also faced significant disruptions.

In the financial sector, the London Stock Exchange and India’s Dalal Street were among the stock exchanges affected. Additionally, U.S. police authorities in Alaska warned citizens of impacts on their 911 emergency services, and Poland’s payment systems were similarly compromised.

The Australian government linked the outages to an issue at global cybersecurity firm CrowdStrike. According to an alert from CrowdStrike, reviewed by Reuters, the company’s “Falcon Sensor” software caused Microsoft Windows to crash, displaying the notorious “Blue Screen of Death.” Despite this, there is no indication that the outage was due to a cybersecurity attack, according to Australia’s National Cyber Security Coordinator, Michelle McGuinness.

The ripple effects of the outage were extensive. The travel industry saw significant disruptions, with airports in Tokyo, Amsterdam, Berlin, and several Spanish cities reporting system issues and delays. Ryanair, Europe’s largest airline by passenger numbers, warned of booking system problems.

In Britain, medical booking systems went offline, impacting healthcare services, while Sky News, a major broadcaster, temporarily went off-air. Banks and financial institutions across Australia, India, and South Africa also reported service disruptions. LSEG Group’s data and news platform Workspace faced outages, and Amazon’s AWS cloud service noted connectivity issues with Windows EC2 instances and Workspaces.

The cause of the widespread IT outage remains unclear, though it is evident that the issue has created global havoc. The Down Detector website shows numerous service disruptions, including those affecting Microsoft, Visa, and Ryanair.

Tech expert Troy Hunt highlighted the widespread reports of Windows PCs encountering the Blue Screen of Death. He noted on X that he had been contacted by multiple media outlets about the issue, indicating its broad impact.

The outage has also affected U.S. emergency services, with reports of significant disruptions in Oregon and other regions. In the U.K., Southern Railway announced widespread IT issues affecting their network, leading to potential train service cancellations.

Unconfirmed reports suggest that CrowdStrike’s software update might be the source of the problem. Security expert Kevin Beaumont indicated that the flawed update could not be automatically fixed, potentially slowing down recovery efforts.

As the global community works to address and mitigate the effects of this extensive IT outage, the full impact on various industries continues to unfold.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.