Last Friday’s CrowdStrike outage, which made headlines for disrupting operations at valley polling places, severely disrupted life for people all over the state because of Arizona’s heavy use of mobile banking, according to a study from Vention released Tuesday.
According to a release obtained by AZ Free News, the study by software development company Vention was based on Google Keyword Planner analysis of the U.S. Google search volume related to mobile banking on the basis that it can identify the states that utilize it most and were therefore the most impacted.
🚨 Recent #CrowdStrike outage shows that even automated security systems need a human touch. For startups & SMBs without dedicated security staff, Vention is here to bridge the gap. Let us help you stay secure and focused on growth: https://t.co/7J25dbcgkxhttps://t.co/tAtwqw1rYa
Arizona ranks fifth in the nation based on Vention’s findings following Maryland, New Jersey, Connecticut and Florida.
Credit: https://ventionteams.com Sources: Search volume data was gathered from Google Keyword Planner | Mobile banking usage survey results are from marketwatch.com | Penetration rate of online banking in the US is from statista.com
In Arizona, the utility of mobile banking is intuitive given the nature of Arizona’s development with tens of thousands of residents living in far-flung communities further from civic and business centers. But in other areas where mobile banking is prevalent, insufficient physical banking locations to handle customer density is a reasonable cause.
Vention reports, “In recent years, mobile banking has rapidly gained popularity, driven by the convenience and accessibility it offers. A recent survey conducted by MarketWatch found that nearly 75% of people prefer mobile and online banking over in-person banking.”
Marc Karasu, CMO at Vention, commented on the findings saying, “It’s fascinating to see which states are adopting the latest trends in banking technology more quickly and which are lagging.”
“What’s more, mobile banking popularity is set to keep rising, with research predicting that over 79% of the population will be using online banking by 2029.”
“Studies such as these are invaluable for the banking industry to identify where they need to focus their marketing efforts. Additionally, it highlights the states that could benefit from increased financial technology education and support.”
A report from the Arizona Republic Friday stated that the outage brought down point-of-sale systems at Circle K locations, caused delays and flight cancellations at Phoenix Sky Harbor International Airport, and disrupted police dispatch and communications systems all over the state.
Founder and president of Data Doctors Computer Services, Ken Colburn, told AZCentral that the situation could cause CrowdStrike and other cybersecurity firms to perform a “deep self-examination,” adding, “The silver lining of this is maybe we as an industry become better at this type of thing.”
Discussing the convenience of technology and interconnectivity as well as the risks he told the outlet, “You can’t really have it both ways.” He continued, “Every day, we as individuals make risk decisions. It is the nature of individuals. It’s the nature of business. It’s the nature of life. What we have to do is make sure that the risks that we’re taking do not exceed the value of what we’re getting out of our interconnected world.”
According to CNN, the outage, described as the largest IT outage in history, is expected to cost Fortune 500 companies in excess of $5 Billion in direct losses with healthcare and banking systems hit the hardest, suffering estimated losses of $1.94 billion and $1.15 billion respectively.
On Tuesday, Maricopa County Elections officials held a press conference on the expectations voters can have over the next weeks as primary votes are cast and tabulated in the July 30th election. The performance of the Arizona election system will likely presage the General Election experience we can expect in November. Amidst the CrowdStrike outage and the attempted assassination of President Donald Trump looming over the proceedings the officials took questions from several outlets and briefed the press on projected turnout.
Maricopa County District 3 Supervisor Bill Gates began by addressing the increasingly tense atmosphere to the gathered reporters saying, “Unfortunately we’re talking about and thinking about political violence and our country right now in a way that we haven’t in a long time.”
He continued citing security concerns on election day, “We know that’s on people’s minds and that’s why we are committed to providing a safe and secure experience both for our elections workers as well as those people who go to vote .”
Gates added, “It’s very important that everybody understands that me and my colleagues on the board are committed to safe, secure and transparent elections.”
Responding to questions about the impact of CrowdStrike’s Friday outage on the election system, Fields Moseley, the Maricopa County Communications Director, told 12News, “We feel like we had a fairly low impact. Still, almost 400 people voted on Friday. We opened at 9 a.m. with four vote centers open and had a rolling opening all day long as those were fixed and 40 were opened before the end of the day. None of the tabulators were affected by this. They’re on an air-gap system. They’re not connected to the internet.”
The Republican National Committee and Republican Party of Arizona sent a joint letter to the Maricopa County Elections Director expressing their concerns following the disruption.
🚨@GOP and @AZGOP have requested information from Maricopa County on the CrowdStrike outage. Voters must have full confidence that election systems were not breached and that this will not happen again. pic.twitter.com/7UPgxUNgaY
— Republican Party of Arizona (@AZGOP) July 20, 2024
“The most recent occurrence is extremely worrisome due to the online nature of the issue and the implications if this were to happen on Election Day,” the state and national GOP said in part.
AZGOP Chair Gina Swoboda said in a statement accompanying the letter:
“Following the discovery that the global CrowdStrike outage had affected elections systems in Maricopa and Pima counties in Arizona, the RNC, AZGOP, and Trump Campaign’s election integrity department have sent a letter to every county in the state. We are demanding information on any other systems affected, if vulnerabilities were exploited, and full evidence demonstrating that there were no breaches to determine the extent of the issue. Most importantly, we must have complete assurance that this will not happen again and that the elections systems are not susceptible to these threats during our country’s most important election. These breaches highlight alarming fragilities in the voting system, and we need confirmation that there was no nefarious activity. How was this allowed to happen in a critical battleground state during the primary election?
Voters must have full confidence their ballots are protected. We will uncover the evidence and pursue every avenue needed to ensure the system is secure.”
Moseley replied, “We’re aware of the letter from the RNC. We will respond to the RNC at the appropriate time.” He continued, “We already publicly explained what happened to our ballot on demand system on Friday during the day. We opened at 9:00 a.m. with four vote centers open and had a rolling opening all day long as those were fixed and 40 were open before the end of the day. None of the tabulators were affected by this. They’re on an air gap system. They’re not connected to the internet.”
BREAKING: Reports are coming from Maricopa County, Arizona that Dominion voting machines are malfunctioning county-wide as a result of the CrowdStrike outage. Officials have long claimed that the machines are NEVER connected to the internet… you can laugh at those claims now… pic.twitter.com/t5A6SIImKY
Addressing concerns for the General Election, Jennifer Liewer, the Maricopa County Deputy Elections Director for Communications told the conference, “We will have over 240 vote centers open, so if a vote center does go down, people are able to choose from a different vote center, but we will have increased resources, increased technology personnel.” She added, “We are prepared should something occur on Election Day to be able to be responsive without knowing that what exactly might happen and obviously you can um do the best you can to plan for things. And I think our staff being flexible responsive.”
She continued, “Our IT staff were up in the middle of the night on site at MCTEC helping get computers rebooted. It was really all hands on deck and Maricopa County voters can know that we are dedicated and even if that means getting up in the middle of the night and coming into work, we’ll do whatever it takes to make sure that everybody who wants to cast a vote has the ability to do so.”
Moseley, describing the impact of the CrowdStrike outage, noted, “Friday was a pretty unique event,” even quipping: “I mean let’s ask Delta Airlines.” Responding to a question on converting to a different system he told reporters, that he couldn’t say for sure if the county is “re-evaluating,” its use of CrowdStrike for cyber security or Microsoft’s products, which he referred to as “ubiquitous.”
The officials noted that the county is anticipating 623,000 ballots to be cast in total by mail, dropbox, or in-person for the primary election with approximately 94,000 of those being in-person on election day. Approximate projections for total turnout are from 718,000-894,000 or about 30% of the electorate.
Assistant County Manager Zach Schira stressed the staffing levels and heavy investment the county has made in elections stating, “Good people ran lawful elections in Maricopa County in 2020 and 2022 and are doing so in 2024. Our full-time election staff, supplemented by thousands of members of this community, are trained to ensure we are following the law.” He added, “Over the past year, the Board of Supervisors has invested heavily in elections: more than $15 million in new money towards resources and equipment that directly impact the efficiency and security of our operations. Bottom line: we are well resourced, well planned, well trained for next Tuesday’s Primary and the entire 2024 cycle.”
