ASB said in a late-night update that its credit, debit and Eftpos cards were now working. Around 1am the bank posted: “FastNet Classic and the ASB Mobile app are now back up and running with some limited functionality.”
ANZ told the Herald this morning that all of its systems had been restored overnight, but a spokeswoman qualified, “For customers who were expecting a payment from another bank overnight there may be a delay while a small number of disrupted payments are processed. This would be automatic payments, bill payment and direct debit payments. All outgoing ANZ payments have been processed.”
Friday evening saw long queues at retailers, with Woolworths shutting some of its stores and halting online orders.
Civil Defence said in a late Friday night update that it was implementing the CrowdStrike patch. 111 calling and other systems were operational.
Air New Zealand reported last night that all of its flights were running to schedule, but that some customers were having payment issues due to the outage. The Civil Aviation Authority reported no delays to flights in New Zealand, but warned of possible problems today with the flow on effect from countries – including the US – where flights were grounded for much of Friday.
Jetstar was impacted, with the airline cancelling all flights until 2am Saturday morning. Auckland Transport reported HOP card payments were down. Multiple councils reported problems with their IT systems.
Who is CrowdStrike?
The global outages, which saw many hospitals revert to manual systems, broadcasters including Sky News UK forced off-air, travel chaos and long queues at many service stages or supermarkets on Friday from around 5pm NZT, was caused not by a cyberattack but software designed to stop it.
The Austin, Texas-based CrowdStrike makes cybersecurity software including Falcon – which monitors an organisation’s IT systems for hacking attempts, viruses and other threats.
It was a bug in a Falcon update late on Thursday NZT that caused global mayhem.
CrowdStrike, founded in 2012, says that its customers include 298 of the firms in the Fortune 500, 8 out of 10 of the world’s largest financial services firms and six of the 10 largest healthcare providers.
Manual fix could take days
CrowdStrike issued a fix early Friday evening NZT, but it took hours for many organisations to implement. And cybersecurity experts warn that because individual Windows PCs must be updated manually, it could be days before some systems are fully recovered.
“The fix CrowdStrike has given is quite manual and may be difficult, in some cases, to deploy at large scale,” said Simo Kohonen, founder of Finland-based network security company Defused.
And CyberCX executive director for strategy and risk Dan Richardson told BusinessDesk that because it struck on Friday evenings, some firms will not yet realise they’ve been hit.“
For organisations that don’t operate on a 24/7 basis, they might not see the impact of this until over the weekend or potentially through into next week,” the security expert said.
Read a guide to fixing your PC here.
Slow apology
Cloudstrike CEO George Kurtz took flak on social media for his post announcing a fix – in which he failed to apologise for his firm causing worldwide mayhem.
But shortly before midnight NZT, Kurtz appeared on NBC’s Today show, where he said: “We’re deeply sorry for the impact that we’ve caused to customers, to travellers, to anyone affected by this.”
And six hours after his initial post, he penned a mea culpa on X too.
A Daily Telegraph reporter who visited CrowdStrike’s Australia-NZ headquarters in Sydney at 5.08pm yesterday found the office empty. One staffer turned up shortly after.
He said he was told employees work remotely on Fridays.
Billions wiped from market cap
On RNZ, tech commentator Peter Griffin said Crowdstrike earned some $140m in annual revenue from the Australian and New Zealand markets.
It was not immediately clear if the firm would face any penalty from regulators if it proved it had pushed out an update with insufficient due diligence.
But the market delivered an immediate verdict.
CrowdStrike shares were down 11% in early Nasdaq trading, wiping some US$10.8 billion ($18.9b) from the tech giant’s market cap.
Microsoft’s shares were relatively unaffected, down 0.5% in line with a broader market dip.
Cybersecurity expert and founder of the ASafaWeb security analysis firm Troy Hunt said it was “the largest IT outage in history”. Hunt posted to X, in reference to the sweeping nature of the outage: “This is basically what we were all worried about with Y2K, except it’s actually happened this time.”
Tech expert Paul Spain told the Herald that billions of dollars in lost productivity could be lost as a result of the CrowdStrike IT outages.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.