Global IT meltdown costs could exceed 14 trillion won… Followed by compensation lawsuits

Possible significant damage to the aviation industry…CrowdStrike “Most devices operating normally”,
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Screens at a darkened New York airport due to the global IT crisis
A security program released by the US cyber security firm CrowdStrike clashed with MS Windows, leading to a global IT crisis. An error message is displayed on the screen at a New York airport on the 19th (local time). [AP News Photo. No resale or DB],
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, ‘ (Seoul=Yonhap News) Reporter Choi Yoon-jung = The costs incurred by the global information technology (IT) crisis that occurred last week are expected to exceed 1 billion dollars (approximately 1.4 trillion won), and the compensation is likely to be settled through lawsuits.’,
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, ‘ On the 19th, a security program released by the cyber security firm CrowdStrike caused the “Blue Screen Of Death” on 8.5 million devices due to a clash with MS Windows.’,
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, ‘ As a result, damages such as over 5,000 flight delays and cancellations worldwide, disruptions in broadcasting, communication, and financial services, occurred. Hospital surgeries and cargo deliveries were suspended, and hand-drawn maps appeared on TV weather forecasts.’,
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, ‘ Patrick Anderson, CEO of the US-based Anderson Economic Group, said that the costs of this global IT crisis could easily exceed 1 billion dollars, as reported by CNN on the 21st (local time).’,
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, ‘ The company specializes in estimating the economic costs of incidents such as strikes.’,
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, ‘ “Recent incidents of global hacking by CKD Global, a software company that provides services to US car sales companies, are estimated to have incurred costs of 1 billion dollars, although the impact lasted longer at the time, the repercussions were limited to specific industries,” he said.’,
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, ‘ He explained, “This incident has had a much broader impact on consumers and businesses, resulting in difficult-to-recover damages. Airlines may have incurred significant costs due to reduced revenue from flight cancellations and additional expenses for labor and fuel due to flight delays.”‘,
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, ‘ CrowdStrike stated that a significant number of affected devices had returned to normal operating status, as reported by Reuters.’,
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, ‘ CNN reported that while CrowdStrike apologized, they did not mention compensating affected customers.’,
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, ‘ Experts see a high likelihood of lawsuits being filed in relation to compensation, according to CNN.’,
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, ‘ One expert mentioned that CrowdStrike’s customer contracts may include indemnity clauses.’,
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, ‘ James Lewis, a researcher at the Center for Strategic and International Studies (CSIS), speculated that CrowdStrike is likely legally protected under its contracts.’,
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, ‘ He noted that in a recent case related to the hacking of a Russian federal agency in 2020, the US Securities and Exchange Commission (SEC) dismissed a case where the IT network management company SolarWinds was sued.’,
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, ‘ CrowdStrike’s annual revenue falls just short of 4 billion dollars.’,
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, ‘ Experts reported that due to CrowdStrike’s strong dominance, it may be difficult for customers to switch to competitors.’,
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, ‘ Dan Ives, a tech analyst at Wedbush Securities, predicted that less than 5% of departing customers would leave.’,
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, ‘ merciel@yna.co.kr’,
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