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AMNA NAWAZ: Welcome
to the "News Hour."

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The pressure is mounting
on President Biden to step
aside from his campaign

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a day after the Republican
National Convention wrapped

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up with a highly anticipated
speech from former
President Donald Trump.

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GEOFF BENNETT: We will have
more on the shifting political
landscape in a moment.

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But we start tonight with
a tech outage around the
world that halted flights,

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disrupted emergency
services, and created
headaches for businesses.

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AMNA NAWAZ: The underlying
problems behind the glitch
were fixed by the afternoon,

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but the ripple effects have
lasted throughout the day and
may continue well into tomorrow.

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GEOFF BENNETT: And, as
William Brangham reports,

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thousands of passengers
are still trying to get to
their destinations tonight.

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WILLIAM BRANGHAM: It was
the glitch felt around
the world. Today's
software failure triggered

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far-reaching and frustrating
outages globally. Air
travelers were among the
most directly affected,

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with tens of thousands
of flights delayed and
thousands more canceled.

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BECCA MAYNARD, Stranded
Passenger: I have never
seen it like this before,

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especially in this airport. This
airport is my favorite because
it's usually getting it out.

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WILLIAM BRANGHAM: The
outage was caused by a
faulty software update

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within Microsoft's Windows
operating system. Many
users first noticed the

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problem when they saw
the notorious so-called
blue screen of death.

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The faulty update was
issued by the cybersecurity
firm CrowdStrike.

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CEO George Kurtz offered
a mea culpa this morning
on "The Today Show."

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GEORGE KURTZ, CEO and Founder,
CrowdStrike: We're deeply
sorry for the impact that we

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have caused to customers, to
travelers, to anyone affected
by this, including our

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companies. So we know what the
issue is. We're resolving and
have resolved the issue now.

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WILLIAM BRANGHAM: The
FAA temporarily grounded
major U.S. airlines,

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including United,
American, and Delta.

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WOMAN: Please wait on
the passenger load. We
aren't checking right now.

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WILLIAM BRANGHAM: With
flights stalled, check-ins
were brought to a standstill.

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This passenger in Minneapolis
was disappointed with
his airline's response.

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MATT JORDAN, Stranded
Passenger: What's interesting
to watch is that airlines have

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no idea what's happening because
it is such an issue that they
don't have a grasp on yet,

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at least here at the
Minneapolis Airport.

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WILLIAM BRANGHAM: Across the
world, in Australia, travelers
had to fend for themselves.

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CHRISTINE POULTON, Stranded
Passenger: Our flight's been
canceled, so now we're trying

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to find accommodation in Sydney,
which is not easy. Our daughters
are trying to do that online.

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And then we will have to try
and get a flight home somehow,
somewhere, sometime. Don't know.

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WILLIAM BRANGHAM: It
wasn't just air travel

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that was affected.
Hospitals and health care
systems overseas were

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also locked up, forcing the
cancellation of appointments
and the closing of clinics.

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Massachusetts General Hospital
had to limit operations,

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announcing -- quote -- "Due
to the severity of this issue,
all previously scheduled,

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non-urgent surgeries,
procedures, and medical
visits are canceled today."

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The outage also impacted
911 call systems in many
places, in emergency
services in Oregon, Alaska,

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and Arizona. Global news
outlets like Sky News
were unable to broadcast
their regular programs.

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WOMAN: And a major global I.T.
outage is impacting many of

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the world's largest companies,
including us here at Sky News.

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WILLIAM BRANGHAM: In Paris,
Olympic officials say some of
their systems were also down.

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In many places, courts were
also closed or delayed. While
the underlying software problem

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has been fixed, security experts
say residual problems could
continue for several days.

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So, to help us understand more
about what went wrong and the
broader risks to our system,

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we turn again to Bruce Schneier.
He's an expert in computer
security and technology,

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a lecturer at the Harvard
Kennedy School, and
writes the wonderful blog
Schneier on Security.

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Bruce Schneier, thanks so
much for being here again.

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Help us understand the
basics here. What is
it that went wrong?

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BRUCE SCHNEIER, Harvard
University: You know,
basically there are hundreds of

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companies that do small
things that are critical to
the Internet functioning.

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And, today, one of them failed,
this company you have probably
never heard of and wouldn't

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hear of if it didn't fail.
It's one of many. I mean,
the details are geeky,

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but basically one of the
critical things that holds
the Internet up fell down.

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WILLIAM BRANGHAM: OK,
but that simple little
glitch today grounded
planes, stopped surgeries

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from happening, had 911
systems go down. I mean,
if that can be happening
because of an accident,

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I mean, what would happen if
there was a motivated bad actor
getting into these systems?

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BRUCE SCHNEIER: We see that. Do
you remember Change Healthcare,

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when no one got prescriptions
because of ransomware?

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Remember Colonial Pipeline,where
oil stopped flowing in the East

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Coast because of ransomware?
We see this again and again.
Sometimes, it's malice,

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sometimes it's accident, but
there are so many critical
things that make this

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network function. And if
any one of them fails,
the network fails.

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WILLIAM BRANGHAM: So is
it just that we are too
overreliant on a concentrated
number of companies?

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BRUCE SCHNEIER: Yes, it's
concentrated and the fact that
there's no -- no resilience,

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that it's a very fragile system.
And a lot of that is the way
-- is the economics, right?

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Redundancies are viewed
as inefficient, so they're
pulled out of the system
because of profits,

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but that ends up with a
very fragile system. It
all works great when it
works. When it fails,

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it fails catastrophically,
which is what we saw today.

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WILLIAM BRANGHAM: So is
that the incentive here? Is
that to change -- to make a

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meaningful incentive, to sort
of build in that redundancy?
Is it economics principally?

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BRUCE SCHNEIER: It's economics.

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We have the technology
here. I could describe
ways that CrowdStrike
could have rolled out this

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change incrementally and caught
this before it was a disaster.
We can talk about maybe

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there being a dozen companies
do the same thing, so that
the disaster is contained.

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But, really, it is
fundamentally economics.
The business incentive is
to grow and become critical

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and then run as lean
as absolutely possible.

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WILLIAM BRANGHAM: So
what do you think the
downstream consequences

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for CrowdStrike and/or Microsoft
will be? Or will there be none?

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BRUCE SCHNEIER: There will
be none. What were the
downstream consequences
for Colonial Pipeline or

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Change Healthcare or the
dozens of other incidents like
this in the past few years?

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We move on, right?
Politics is all-consuming.

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This is a blip. Tomorrow,
I don't even think
it's going to be news.

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WILLIAM BRANGHAM: On
a practical basis, for
an individual who late

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last night or today might
have done some online
transaction, paid a bill,

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transferred money, do they
need to worry? Could this have
impacted them in some way?

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BRUCE SCHNEIER: I mean,
they could have if
they were flying today,

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if they wanted to needed 911
services, hospitals. A lot
of things collapsed. But,

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really, as an individual,
there's nothing you can do.

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You're not in charge of
these networks. You don't
get to say what products
and services are used

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or not. We are all at the mercy
of these very large consolidated
systems. And when they fail,

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our life is impacted. The only
way to make this change is at
the political level, right?

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Agitate for some meaningful
rules here that will keep
companies from being this lean.

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WILLIAM BRANGHAM: But you know
the difficulties of that kind
of a thing. One, that's not a

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constituency that's
naturally out there that's
organically fighting for
this kind of a thing.

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Absent that, are there
political leaders that
could be doing this,

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that could be pressing
this in a regulatory way?

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BRUCE SCHNEIER: I mean, there
can. I don't think there will
be. We have a lot of trouble,

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especially the United
States, regulating anything.
And this is certainly
not the worst disaster.

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This is just one of many. This
is today's disaster. So, yes,

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there could be change. I
wouldn't expect it. E.U. is
doing better. You see more

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meaningful regulation there. But
even there, they're not doing
the kind of things that will

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make our critical infrastructure
more redundant, more resilient.

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WILLIAM BRANGHAM: All
right, Bruce Schneier
of Schneier on Security,

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thanks so much for being here.

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BRUCE SCHNEIER: Yes, thanks
for having me. Glad we're on.