CrowdStrike’s Cyber Outage Will Cost $Billions

The CrowdStrike defective software update that crashed computers, cancelled flights and disrupted hospitals around the world and the outage may have cost Fortune 500 companies as much as $5.4 billion in revenues.

The largest direct financial losses will likely be suffered by Fortune 500 companies in the healthcare and banking sectors.

With litigation and numerous lawsuits waiting in the wings, Crowdstrike is probably looking at billions more in fines, legal fees and lost revenue. 

CrowdStrike will probably be fined by US Government Regulators. Worse, as the CrowdStrike’s outage could have involved breaches and issues related to personal data, it could come under investigationby European regulators, which can impose fines of up to 4% of annual revenues.

In the US, CrowdStrike is also likely to see an avalanche of class action lawsuits. US law firms, including San Francisco-based Lieff Cabraser Heimann & Bernstein, are already reviewing and collecting data from clients related to business losses that “will help us hold Crowdstrike accountable for its disruption of global business and the consequences thereof for all Internet users.”

Further, CrowdStrike could see customers leave for competing firms and the outage has already cost the company and its investors $billions, including the damages to its stock market value, which it will likely not recover from any time soon.  

The primary cause of the failure stemmed from an update that CrowdStrike pushed to its flagship Falcon platform, which functions as a cloud-based service intended to protect businesses from cyber-attacks and disruptions. The update contained a bug which caused 8.5m Windows machines to crash en masse.

CrowdStrike is one of the world’s most important cyber security companies, and was valued at around $83bn before the outage. It services about 538 of the Fortune 1000 companies, according to its website, and operates around the world. 

The incident has taken a significant bite out of CrowdStrike’s stock price and CrowdStrike’s shares fell to $294 per share, and are presently trading at around $264. That’s a decline of more than 20%, and its market capitalisation could fall even further.

The consequences of its botched software update are proving severe, demonstrating just how many companies are reliant on a single supplier for the same services to keep operations running.

CrowdStrike have now said that it has laid out plans to ensure a similar issue can be prevented, including additional validation checks and improved testing by using testing types such as local developer testing and content update and rollback testing.

Fast Company   |     Lieff Cabraser   |   Reddit   |     Guardian   |     CNN   |    Silicon Republic   |   NYPost  

Imge:

You Might Also Read: 

Companies Must Review Their Cloud Strategies:


If you like this website and use the comprehensive 6,500-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

 


Cyber Security Intelligence: Captured Organised & Accessible


 

« Wiz Rejects Google's $23b Acquisition Offer
Most Wanted - North Korean Hackers  »

CyberSecurity Jobsite
Check Point

Directory of Suppliers

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

ManageEngine

ManageEngine

As the IT management division of Zoho Corporation, ManageEngine prioritizes flexible solutions that work for all businesses, regardless of size or budget.

Federal Office For Information Security (BSI) - Germany

Federal Office For Information Security (BSI) - Germany

The BSI (Bundesamt fur Sicherheit in der Informationstechnik) is the federal cyber security agency and the chief architect of secure digitalisation in Germany.

TraceSecurity

TraceSecurity

TraceSecurity, a leading pioneer in cloud-based security solutions, provides IT governance, risk and compliance (GRC) management solutions.

IronScales

IronScales

IronScales combines human intelligence with machine learning to automatically prevent, detect and respond to email phishing attacks.

Stealthcare

Stealthcare

Stealthcare is a full service, global cyber security firm offering solutions that educate, empower and protect.

Kuratorium Sicheres Österreich (KSO)

Kuratorium Sicheres Österreich (KSO)

KSO is an independent non-profit association that has set itself the goal of making Austria safer as a national networking and information platform for topics of internal security.

ACM-CCAS

ACM-CCAS

ACM is a UKAS-accredited certification body helping businesses around the world perform to a higher standard. Our certifications include ISO 27001 and ISO 22301.

PixelPlex

PixelPlex

PixelPlex is a blockchain and custom software development company with offices and developers in New York, Geneva, and Seoul.

Infosec Cloud

Infosec Cloud

Infosec Cloud is a specialist Cyber Security company offering fully managed Training & Testing Services in addition to market leading Cyber Security technology and accredited professional services.

Exterro

Exterro

Exterro is a leading provider of e-discovery and information governance software specifically designed for in-house legal, privacy and IT teams at Global 2000 and Am Law 200 organizations.

Viettel Cyber Security

Viettel Cyber Security

Viettel Cyber Security is an organization under the Military Telecommunication Industry Group, conducting research and developing information security solutions for domestic and foreign customers.

Darkscope

Darkscope

Darkscope is an award-winning personalised cyber intelligence service provider. Our cutting-edge AI and Deep Artificial Neural Networks lead the world of cyber intelligence solutions.

Ostra Cybersecurity

Ostra Cybersecurity

As a next-generation MSSP, Ostra Cybersecurity combines best-in-class tools, proprietary technology and exceptional talent to deliver Fortune 100-level protection for businesses of all sizes.

Yarix

Yarix

Yarix is the leading company in Var Group’s Digital Security division and one of the most recognised, innovative and authoritative Italian companies in the IT security sector.

STACK Cybersecurity

STACK Cybersecurity

STACK Cybersecurity serves as a strategic partner, guiding you through the intricate and dynamic cybersecurity landscape.

Metrics that Matter (MTM)

Metrics that Matter (MTM)

Metrics that Matter redefines how organizations approach cybersecurity by offering unprecedented insight into the value of their assets to criminals and tailored action plans to protect.

Hakai Security

Hakai Security

Hakai is a consulting firm specializing in information security that offers customized services and products to meet the needs and goals of each business.