Inside the July Tech Outage: The “Blue Screen of Death” and Its Impact

On July 19th, 2024, a significant global technology outage caused widespread disruptions across Canadian hospitals, airlines, businesses, and more. This massive incident was triggered by a malfunction in a software update from CrowdStrike, a global cybersecurity firm. The update for their Falcon Sensor software, which provides protection in regards to cyber threats, led to a “Blue Screen of Death” across Microsoft Windows-based systems worldwide. CrowdStrike noted that this was not a cyberattack but rather a failure in a software update. With a majority of the world’s computers using Windows systems, it is concerning to witness the magnitude of the technology outage. In Ontario, hospitals in Toronto and Hamilton faced outage issues. Moreover, University Health Network in Toronto, one of Canada’s largest hospital networks, also voiced having system challenges as a result of the outage. A major Toronto based airline was severely hit by the outage. The airline canceled all flights until at least 3pm, affecting more than 7,000 customers. According to Cirium, an aviation data firm, by 12:30, the airline had scrapped 56 flights, or 26 % of its 212 scheduled takeoff. At the main airports in Toronto, Vancouver, Calgary, and Montreal, the majority of arrivals and departures between Canada and the U.S. were canceled or faced delays.

In the telecommunications sector, one of Canada’s largest carriers experienced operational challenges due to employees being unable to access necessary tools and systems, withholding them from supporting their customers. Additionally, many Canadian banks faced issues with their online banking platforms, reporting temporary disruptions in their services, such as difficulties in trading or completing transactions.

This event serves as a reminder of the critical role that technology management plays in the business environment. While the immediate impacts of the outage are still being resolved, the incident highlights important legal considerations for businesses that rely on technology.

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