CrowdStrike's Role In the Microsoft IT Outage, Explained (2024)

The major Microsoft IT outage on Friday that grounded flights, sent TV stations off air, and disrupted online hospital systems has been linked to a third party—a cybersecurity technology firm named CrowdStrike.

CrowdStrike’s CEO George Kurtz has spoken out about the outage, apologizing for the disruption caused.

As the fallout from the event continues to impact people worldwide, here’s a breakdown of how exactly CrowdStrike is involved and what transpired.

Read More: How to Protect Yourself From Scams Following the CrowdStrike Microsoft IT Outage

What caused the Microsoft outage?

Early Friday, companies in Australia running Microsoft’s Windows operating system started reporting devices showing, what is commonly referred to as, “blue screens of death.” According to Microsoft’s website, this happens “if a serious problem causes Windows to shut down or restart unexpectedly.”

These disruptions then spread rapidly, impacting companies and communities around the world. The U.K., India, Germany, the Netherlands, and the U.S., reported disruptions. Meanwhile, United, Delta, and American Airlines issued a “global ground stop” on all flights.

The cause of this outage came from a faulty update from CrowdStrike, deployed to computers running Microsoft Windows. The issue was specifically linked to Falcon, one of the companies main products, which does not impact Mac or Linux operating systems.

Launched in 2012 CrowdStrike’s cybersecurity software is now used by 298 of Fortune 500 companies, including banks, energy companies, healthcare companies, and food companies.

According to David Brumley, professor of electrical and computer engineering at Carnegie Mellon University, this was a perfect storm of issues. “Their code is buggy, and it was sitting there as a ticking time bomb,” Brumley says.

He says there are three steps cybersecurity teams should typically implement when rolling out an update. First, there should have been rigorous software testing to catch bugs; second, there should have been testing on different types of machines; and third, the roll out should have been slow with smaller sets of users to screen for negative ramifications.

“Companies like Google will roll out updates incrementally so if the update is bad, at least it will have limited damage,” says Brumley, adding that the issue may only get more pronounced.

“What we’re seeing and what we’ll continue to see is a huge consolidation in the cybersecurity department, and that’s why we're seeing so many people affected at once,” says Brumley. “We need to be asking, ‘What choices can we give people if companies mess up?’”

How has CrowdStrike responded to the outage felt worldwide?

Appearing via a video link on The Today Show on Friday, CrowdStrike’s CEO delivered an apology to the public:

“We're deeply sorry for the impact that we've caused to customers, to travelers, to anyone affected by this, including our companies,” Kurtz said. “That update had a software bug in it and caused an issue with the Microsoft operating system...we identified this very quickly and remediated the issue.”

Kurtz was clear that this was not a cybersecurity issue nor an attack of any kind, but an issue coming from inside the company.

Though they’ve deployed the changes necessary to help remedy the issue, customers are still having issues, and it may be some time before systems across the globe are all fully operational.

In a statement emailed to TIME, CrowdStrike said that they are “actively working with customers impacted by a defect found in a single content update for Windows hosts.”

They also clarified, once more, for those concerned that the issue is not a security incident, and that the problem has been “identified, isolated, and a fix has been deployed.”

Kurtz has also shared this information on his personal X (formerly Twitter) account.

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

According to Forbes, Kurtz’s net worth had dropped $300 million as of Friday afternoon—from $3.2 billion to $2.9 billion–amid fallout from the IT outage.The CEO’s wealth is enmeshed with CrowdStrike shares, which dropped drastically following the incident.

On The Today Show segment, Kurtz said that CrowdStrike has been on the phone with customers all night, and that the issue was resolved for many when they rebooted their systems.However, he says the company will not “relent until we get every customer back to where they were and keep the bad guys out of their systems.”

If hosts are still crashing and unable to stay online to download CrowdStrike’s fix, the company has provided a workaround to the issue on its blog.

How has Microsoft responded to the IT outage?

On Thursday night, Microsoft 365 posted on X that the company was “working on rerouting the impacted traffic to alternate systems to alleviate impact” and that they were “observing a positive trend in service availability.”

As the disruption continued on Saturday, David Weston, Vice President of Enterprise and OS Security at Microsoft, published a blog post titled, “Helping our customers through the CrowdStrike outage.”

In the blog post, Weston said that Microsoft estimates “CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines.” Still, he goes on to say that the outage “demonstrates the interconnected nature of our broad ecosystem—global cloud providers, software platforms, security vendors and other software vendors, and customers.”

Weston also stated that Microsoft is “working around the clock” to help customers. He referenced the steps they are taking with CrowdStrike to mediate the effects of the outage, the company’s own post demonstrating manual fixes of the issue. Customers can also track the status of the incident through the “Azure Status Dashboard.”

TIME has reached out to Microsoft 365 for further comment.

CrowdStrike's Role In the Microsoft IT Outage, Explained (2024)

FAQs

CrowdStrike's Role In the Microsoft IT Outage, Explained? ›

As CrowdStrike immediately explained to customers and the world, the problem was not a cyberattack but an error in the software update. Because the bug was in CrowdStrike's Falcon platform update for Microsoft Windows, computers using other operating systems (e.g. Mac and Linux) were not impacted.

What caused the CrowdStrike crash? ›

The cybersecurity company blamed a bug in a program that's meant to catch issues before software updates are uploaded to customers. That glitch blocked "problematic content data" from being flagged before it was sent to clients, CrowdStrike said in an update on its website.

Does Microsoft use CrowdStrike internally? ›

The problem originated with an Austin, Texas-based cybersecurity firm called CrowdStrike, relied upon by much of the global technology industry, including Microsoft, for its Falcon program, which blocks the execution of malware and cyber-attacks.

What caused Global IT outage? ›

What caused the outage. The disruption was caused by a flawed update to a cloud-based security software of CrowdStrike, one of the global top cybersecurity companies. The update to the Falcon software triggered a malfunction that disabled parts of the computer systems and software like Microsoft Windows.

What is CrowdStrike used for? ›

CrowdStrike is engineered to thwart attempts at compromising computer systems by monitoring and analyzing activities. It diligently records program executions, file interactions, and network behaviors, all while ensuring the user's data remains confidential.

How did CrowdStrike outage happen? ›

As CrowdStrike immediately explained to customers and the world, the problem was not a cyberattack but an error in the software update. Because the bug was in CrowdStrike's Falcon platform update for Microsoft Windows, computers using other operating systems (e.g. Mac and Linux) were not impacted.

What went wrong at CrowdStrike? ›

A defective software update sent by CrowdStrike to its customers disrupted airlines, banks, hospitals and other critical services Friday, affecting about 8.5 million machines running Microsoft's Windows operating system.

Does the US government use CrowdStrike? ›

The extent of the impact on federal government operations is still not known. 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
Amazon Web Services10,000+United States
Home Depot, Inc.10,000+United States
OSI Group LLC10,000+United States
iQor10,000+United States
6 more rows

Who owns CrowdStrike? ›

The ownership structure of CrowdStrike Holdings (CRWD) stock is a mix of institutional, retail and individual investors. Approximately 44.31% of the company's stock is owned by Institutional Investors, 2.19% is owned by Insiders and 53.50% is owned by Public Companies and Individual Investors.

What caused the global outage? ›

Last week's global tech outage has been traced back to a bug in U.S. cybersecurity firm CrowdStrike's quality control system. The outage's impacts have been far-reaching, affecting roughly 8.5 million Windows devices and disrupting banks, emergency call centers and airlines.

How much did the CrowdStrike outage cost? ›

The massive CrowdStrike outage that affected millions of Microsoft devices is predicted to cost U.S. Fortune 500 companies $5.4 billion in total direct financial loss, with an average loss of $44 million per Fortune 500 company, according to new data from cloud monitoring and insurance firm Parametrix.

How much money was lost because of CrowdStrike? ›

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

Does Microsoft use CrowdStrike? ›

Additionally, CrowdStrike has helped us develop a scalable solution that will help Microsoft's Azure infrastructure accelerate a fix for CrowdStrike's faulty update. We have also worked with both AWS and GCP to collaborate on the most effective approaches.

What is so unique about CrowdStrike? ›

CrowdStrike is the leader in next-generation endpoint protection, threat intelligence and response services. CrowdStrike's core technology, the Falcon platform, stops breaches by preventing and responding to all types of attacks — both malware and malware-free.

Why do customers typically move to CrowdStrike? ›

Due to its reputation for combating advanced and state-sponsored cyber attacks, CrowdStrike is a go-to for government agencies and critical infrastructure.

Why did CrowdStrike fall? ›

The cybersecurity company said Friday that a faulty software update triggered the chaos, sending the stock down by double digits on both Friday and Monday. It closed at $263.91 on Monday versus $343.05 on Thursday, the day before the outage. Shares were falling 1.66% at $264.41 Wednesday.

What is CrowdStrike incident? ›

On 19 July 2024, American cybersecurity company CrowdStrike distributed a faulty update to its security software that caused widespread problems with computers running Microsoft Windows.

Why does CrowdStrike RFM happen? ›

If a kernel is incompatible, the sensor might still install on a host but will be in Reduced Functionality Mode (RFM). While in RFM, the sensor is in a safety mode that protects it from severe compatibility errors. The sensor generates a heartbeat event, but does not perform any monitoring or prevention actions.

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