8 biggest IT disasters of 2021 – CIO
IT is synonymous with business operations for just about any company of any size. So when tech goes down, the company can go down with it.
IT failure, whether its a complex system or project, is increasingly shooting to the top of the business news section, where its impact can become even more detrimental and embarrassing.
Weve gathered eight of the biggest tech crises of 2021 to spotlight the kinds of near catastrophic IT issues that can not only arise but have an outsize impact on your business. Beyond schadenfreude, we hope these tales of IT disaster have lessons for you, even if your organization is nowhere near as big or the stakes arent as high as some of the protagonists from these tales.
Many companies tend to take an if it aint broke, dont fix it attitude toward their IT tools, and if youve ever been part of a botched upgrade or rollout, you know why. But that can result in some truly outdated systems in production use with UIs dating from the earliest days of the software industry which in turn can mean usability problems with real-world consequences.
One of Citibanks back-end systems is a good example of this trend, and is one of the main causes of a half-billion dollar screwup. The story goes like this: Citibank was attempting to send a $7.8 million interest payment on behalf of Revlon, one of its customers, to several of Revlons creditors. Doing that in Flexcube, an ancient piece of in-house Citibank software, was a particularly clunky process: Citibanks employees had to set up a transaction as if they were paying off the whole loan so that the interest could be calculated correctly, then check multiple boxes in order to send the bulk of the payment to an internal Citibank account while only the interest portion went out to creditors. Despite the fact that three different people signed off on this transaction for Revlon, it went through without all the proper boxes checked, and $900 million, most of which wasnt due to creditors until 2023, was sent out.
You may find it surprising that this sort of mistake isnt unheard of and that the benefitting party usually returns the money sent in error back to the company that made the goof. But this time around things went differently: More than half the money sent out went to various hedge funds still bitter that the terms of the loan had been previously renegotiated to Revlons advantage. They said they regarded the money as an early payment of the debt they were owed, and this year a judge ruled that they didnt have to give it back.
The big lesson here is to at least modernize your UIs to ensure employees can perform their duties in a streamlined, coherent fashion and that it can be less painful to make mistakes if people arent mad enough at you to take advantage of it.
Customers of the French bank LCL logged in to their banking app on Feb. 23 only to find that they were looking at someone elses information. The word quickly spread on Twitter and many speculated that this could have been the result of a cyberattack. But according to the bank itself, it was actually the upshot of a software error that was corrected within a day.
Of course, these sorts of development mistakes are a sign of internal failures at the companies where they occur, and they especially shouldnt occur in the banking industry. The fallout illustrated the typical dance that follows on from these kinds of mistakes, with the company at fault minimizing matters: LCL said that no personal information was revealed, that customers could only see other customers accounts but not transfer money, and perhaps only a few hundred customers were affected. Others pointed out that transaction information couldve been used to suss out customer identities, and potentially tens of thousands of users were logging in while the bug was running on live code. In the end, LCL had to scramble to avoid a massive fine from European privacy regulators.
In 2019, the Arizona Legislature passed a law to allow certain prison inmates convicted of nonviolent offenses to complete programming in state prisons that would accelerate their release. But whistleblowers in February revealed that, more than a year later, the software that keeps track of prisoner release eligibility still hasnt been updated to accommodate the new law. While the state insists eligible prisoners can and do have their sentences recalculated manually, the truth is that many may not know theyre eligible for release, or dont have advocates on the outside to press their case, and so are languishing in prison when by law they have the right to go free.
There are several lessons for IT here. One is the importance of building flexibility and extensibility into any system. Another is that software isnt just software: It has real and profound impacts on human lives. Finally, theres the question of how law can be implemented in the form of code and whether the algorithms for enforcing the law should be developed during the legislative process rather than being left to be written after its already on the books.
The state of Maines HR and payroll is, as the Portland Press Herald describes it, run by a 40-year-old system programmed in an obsolete language only one state employee knows how to use. The system had already outlasted a 2016 attempt to replace it that flopped; another attempt, which was supposed to wrap up in 2020, imploded in mutual acrimony this past March, as Workday, the company hired to roll out a new cloud-based system for Maine, walked away from the project.
Rollouts of ERP systems and similar platforms are notoriously disaster prone, and Maines payroll needs were devilishly complex (state police were paid differently hourly rates if they carried a weapon, worked with a K9, or wore scuba gear, for instance). At the core of the dispute is a story that should sound familiar to anyone whos been involved in a big project like this: Maine says that the system came online with a 50% error rate, and Workday said Maines data as imported into the system was hopelessly riddled with errors. More fundamentally, it seems that Maine was hiring staffers to work on the project who didnt have the needed skills, and the state wasnt willing to pay enough to find workers who could make the grade. Throw in some accusations of nepotism and sexual harassment and you have a real IT management mess. Maine is still using its 40-year-old HR system.
If your takeaway from those previous two items is that government is incapable of competent project management, we regret to inform you that a not dissimilar crisis came to light this year in a private sector company and not just any private sector company, but Amazon, the archetype of the hyperefficient new economy that IT and the web made possible.
A New York Times investigation revealed that Amazons internal processes for offering various types of leave to its employees are extremely broken. This has resulted in a litany of horror stories affecting white and blue collar workers alike, such as employees being fired for not showing up to work even though theyre on approved leave, new mothers on maternity leave seeing mysterious cuts in their paycheck, and an injured worker on disability forced to sell his wedding ring for cash because his checks simply stopped showing up.
It turns out Amazon manages its leave system using multiple software products from a variety of vendors, a legacy of its rapid initial growth, so perhaps the lesson here is that the choices you make early in a companys history may reverberate years or decades later. Like the Arizona prison system, Amazon tries to make up for IT dysfunction with human labor: 67 full-time employees are dedicated to inputting data on employee leave, a job so stressful that many end up needing to take leaves of absence themselves.
On Oct. 4, people all over the world were unable to access Facebook, Instagram, or WhatsApp, as all the services run by the company now known at Meta were disconnected from the internet. We wont get too deep into the actual cause of the crisis, which involved an error in the Border Gateway Protocol essentially severing Facebook services from the rest of the internets DNS system. Instead, we want to focus on one detail that might be relevant to any IT shop, even those that arent part of one of the largest tech companies in the world.
Early in the outage, New York Times tech reporter Sheera Frenkel reported that Facebook employees couldnt enter company HQ because their ID badges no longer opened the doors. This in turn prevented techs from getting physical access to the servers they needed to fix the overall problem. Improbably, Facebooks electronic door locks were powered by Facebook. It seems that Facebook is rather obsessed with running all its internal systems on Facebooks own infrastructure, which meant its in-house communications system was also down and unable to deal with the crisis. The industry term for a company that does this is eating its own dogfood, and its generally seen as a vote of confidence in your own products, but Facebooks disaster goes to show that you need a backup food supply handy.
On June 8, millions of Internet users trying to access sites ranging from Reddit to important UK government departments found themselves confronted by 503 error codes, indicating that the server hosting the website wasnt able to handle the request. (Twitter was still working but, tragically, it could no longer display emojis.) How could so many different sites go offline at once? The answer, it turns out, is related to the rise of content delivery networks, which deploy proxy servers at strategic points across the internet for their clients to ensure superfast load times. Nearly every big content site uses CDNs these days, and there arent that many players in this space, and so when one goes down, it can lead to a big chunk of the internet going with it.
In this case, the single point of failure was Fastly, an edge computing provider with a booming CDN business. Fastly rolled out a software update on May 12 that included a bug that could be triggered by a specific customer configuration under just the right conditions. On June 8, a customer unwittingly updated their configuration and caused a crisis that lay at the intersection of software development and industry consolidation.
In October, a reporter from the St. Louis Post-Dispatch, working with security expert Shaji Khan, discovered that a website that allowed the public to search teachers certification and credentials also inadvertently revealed those teachers Social Security numbers. While the numbers werent actually displayed on the search results page itself, they were in clear text in the HTML for the page, making them trivially easily to find. The Post-Dispatch informed the state education department about the flaw before the story was published, giving them time to correct it, and if matters had stood there we probably wouldnt be talking about this story now.
But two days after an Education Department spokesperson started crafting a (never sent) statement thanking the media for bringing the matter to their attention, the governor publicly accused the paper of hiring hackers to embarrass him and the state government and promised to launch a criminal investigation. After doubling down, he faced backlash and ridicule, including blowback from members of his own political party, and we definitely are talking about the story now. So maybe the lesson here is that how you deal with the fallout from an IT disaster is almost as important as the disaster itself.
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8 biggest IT disasters of 2021 - CIO
- This Android browser now gives you a free eSIM with 3GB of data when you travel - Android Central - October 2nd, 2026 [October 2nd, 2026]
- Nvidia launches OpenShell and Sentry to stop AI agents acting outside their limits - tech-ish.com - October 2nd, 2026 [October 2nd, 2026]
- These smart glasses have been recalled for overheating temples causing burns - The Verge - September 26th, 2026 [September 26th, 2026]
- Affinitys biggest photography update yet but dont panic, the image editor is still free! - Digital Camera World - September 26th, 2026 [September 26th, 2026]
- MemBrowse continuously tracks firmware memory footprint, is free for open-source projects - CNX Software - September 26th, 2026 [September 26th, 2026]
- 2026 Special edition - Free/libre and open source software: Visions of openness from the Global South - Association for Progressive Communications - September 13th, 2026 [September 13th, 2026]
- Millions of students can now get access to a free year of Kiro from AWS - About Amazon - September 13th, 2026 [September 13th, 2026]
- Impact Cloud+ Emerges as the Nations Preferred Subscription-Free Software for LED Sign Buyers - EIN Presswire - September 13th, 2026 [September 13th, 2026]
- Switzerland is trialing moving away from Microsoft towards free and open-source software - PC Gamer - September 13th, 2026 [September 13th, 2026]
- Eclipse Foundation Releases Free Toolkit to Help SMEs Prepare for the EU Cyber Resilience Act - Yahoo Finance UK - September 13th, 2026 [September 13th, 2026]
- Richard Stallman: New York Autodidact, Free-Software Pioneer, and Founder of the GNU Project and the Free Software Foundation - bbntimes.com - September 8th, 2026 [September 8th, 2026]
- This free app could become the Blender of texture painting software - Creative Bloq - September 8th, 2026 [September 8th, 2026]
- Version 4.0.0 of the free audio editing software 'Audacity' has been released. - GIGAZINE - September 8th, 2026 [September 8th, 2026]
- 5 reasons Linux is the most valuable software in the world (even though it's free) - How-To Geek - August 31st, 2026 [August 31st, 2026]
- 8 Best Free Antivirus Software in 2026: Windows, Mac & Mobile - memeburn.com - August 18th, 2026 [August 18th, 2026]
- Can Free Design Software Help You Remodel a Kitchen Without a Designer? This Homeowner Put It to the Test - The Spruce - August 18th, 2026 [August 18th, 2026]
- Looking for a Free Microsoft 365 Replacement? Try This Program - CNET - August 18th, 2026 [August 18th, 2026]
- Debian Celebrates 33 Years of Free and Open Source Software - Linuxiac - August 18th, 2026 [August 18th, 2026]
- 10 Best Video Editing Software in 2026: Free & Paid Compared - memeburn.com - August 18th, 2026 [August 18th, 2026]
- I found the perfect free web app. Then I checked what it was doing - PCWorld - August 1st, 2026 [August 1st, 2026]
- Foundation Software and PAS, Inc. Address Construction Compensation Trends and Pay Practices in Free Webinar - voiceofalexandria.com - August 1st, 2026 [August 1st, 2026]
- I added head tracking to my games with a webcam and free software - MakeUseOf - August 1st, 2026 [August 1st, 2026]
- I replaced Lightroom with an open-source alternative, and Adobe's subscription suddenly felt pointless - XDA - August 1st, 2026 [August 1st, 2026]
- Govt to give 100,000 youths free access to AI software - Free Malaysia Today - August 1st, 2026 [August 1st, 2026]
- Why open-source software can be both good and bad - New Scientist - July 26th, 2026 [July 26th, 2026]
- What is open-source AI? A software engineering researcher explains - The Conversation - July 24th, 2026 [July 24th, 2026]
- This free, open-source app changed the way I think about paid software - How-To Geek - July 24th, 2026 [July 24th, 2026]
- Nvidias Brilliant Freemium Software Hook is Why Im Loading Up for The Long Term - 24/7 Wall St. - July 24th, 2026 [July 24th, 2026]
- The legislation would bar the sale of vehicles or software significantly controlled by Chinese owners but it may need changes before passage. See link... - July 24th, 2026 [July 24th, 2026]
- Are Free Software Bundles Becoming the Best Way to Sell Chromebooks? - About Chromebooks - July 24th, 2026 [July 24th, 2026]
- Free Ink is an open ecosystem for e-readers, comprised of open-source projects developing software, firmware, and hardware. - GIGAZINE - July 24th, 2026 [July 24th, 2026]
- ZML Takes On Nvidia Lock In With Free AI Software - Open Source For You - July 9th, 2026 [July 9th, 2026]
- LibreOffice 26.8 Beta Released For Improving This Free Software Office Suite - Phoronix - July 9th, 2026 [July 9th, 2026]
- Toybox Audio Thump One: hard-hitting free synth plugin gets a wild update 3.0 (beta) - synth anatomy - July 9th, 2026 [July 9th, 2026]
- Belm do Par lends its name to the new version of the free software QGIS - MundoGEO - July 9th, 2026 [July 9th, 2026]
- This free software aims to turn Sony headphones into a head tracker for '200+ PC games' - inkl - July 9th, 2026 [July 9th, 2026]
- Tilr TetraOP: a free 4OP FM and wavetable Synthesizer plugin (mac, linux, win) - synth anatomy - July 9th, 2026 [July 9th, 2026]
- If you have Sony headphones, you may be able to use them as a headtracker with this free software - PC Gamer - July 7th, 2026 [July 7th, 2026]
- IGV Investors: Watch Oracles Free Cash Flow as the Real Test of AI Capex Economics - 24/7 Wall St. - July 1st, 2026 [July 1st, 2026]
- 5 free and open-source software (FOSS) to replace Microsoft, Google, and big tech - How-To Geek - July 1st, 2026 [July 1st, 2026]
- Oxyfinz Unveils Free Software Initiative to Bridge the UAE Wealth Management Technology Gap - The Fintech Times - July 1st, 2026 [July 1st, 2026]
- FREE TO READ | Cracking the code to using enterprise software - TimesLIVE - July 1st, 2026 [July 1st, 2026]
- Ag View Solutions Offers Farm Profit Manager Software for Free - AG INFORMATION NETWORK OF THE WEST - June 24th, 2026 [June 24th, 2026]
- From free speech to software design: How experts are reading the Delhi HCs Telegram ruling - MediaNama - June 24th, 2026 [June 24th, 2026]
- Year of free HPE software a step in the correct direction in VMware rivalry - Ars Technica - June 22nd, 2026 [June 22nd, 2026]
- Free Software Foundation Europe pushes EU to force Google to allow AI uninstalls on Android - Neowin - June 22nd, 2026 [June 22nd, 2026]
- Smokeball Offers Free Software Access To Over 900,000 Attys - Law360 - June 16th, 2026 [June 16th, 2026]
- Foundation Software and Sax LLP to Host Free Webinar on Job Cost Reporting for Better Profit Management - ACCESS Newswire - June 16th, 2026 [June 16th, 2026]
- Palantir (PLTR): Debt-Free AI Growth Shows Why Its Software Story Still Has Financial Firepower - Yahoo Finance - June 16th, 2026 [June 16th, 2026]
- Foundation Software and Sax LLP to Host Free Webinar on Job Cost Reporting for Better Profit Management - Bluefield Daily Telegraph - June 16th, 2026 [June 16th, 2026]
- Massive's Pioneering 'Lord Of The Rings' Crowd Simulation Software Is Now Free To Use - Engadget - May 29th, 2026 [May 29th, 2026]
- Linux is Getting a Free Pass on Age Verification in California and Colorado - It's FOSS - May 29th, 2026 [May 29th, 2026]
- Claude Mythos AI Identified 10,000+ Software Vulnerabilities in One Month - Hackread - May 29th, 2026 [May 29th, 2026]
- BYD Shark 6 to gain free off-road software upgrade - EVs & Beyond - May 29th, 2026 [May 29th, 2026]
- Unique opportunity: a free technology program in SC offers professional training for young people with a focus on programming, software development,... - May 29th, 2026 [May 29th, 2026]
- Microsoft Says This Free App Can Fix Slow PCs in One Click. I Had to Try It - PCMag - May 29th, 2026 [May 29th, 2026]
- US and Allies Guarantee Tax-Free Streaming and Software Downloads - PYMNTS.com - May 11th, 2026 [May 11th, 2026]
- This free CAD software runs in your browser and puts expensive programs to shame - MakeUseOf - May 11th, 2026 [May 11th, 2026]
- Avast Free Antivirus: The Go-To Software for Millions of Users - Gizmodo - May 11th, 2026 [May 11th, 2026]
- The Best Budget Apps for 2026: Pros, Cons and What Users Say - NerdWallet - May 11th, 2026 [May 11th, 2026]
- Fluid-free dry braking is now in the sights of automakers: 100% electronic systems promise to reduce reliance on hydraulics, cut maintenance, and... - May 11th, 2026 [May 11th, 2026]
- I signed up to YouTube Premium exclusively for music videos, and its like MTV never left but theres one reason why I wont go beyond my free trial -... - April 21st, 2026 [April 21st, 2026]
- Microsoft College Offer doles out free software so that you forget that MacBook Neo is a better deal - Yahoo Tech - April 21st, 2026 [April 21st, 2026]
- The creative software industry has declared war on Adobe - The Verge - April 21st, 2026 [April 21st, 2026]
- Foundation Software and Hahn Loeser & Parks LLP to Host Free Webinar on Subcontractor Risk Management - Bluefield Daily Telegraph - April 21st, 2026 [April 21st, 2026]
- Top 7 Free Accounting Software for Clubs and Associations - Small Business Trends - April 10th, 2026 [April 10th, 2026]
- [un]prompted 2026 Code Is Free: Securing Software In The Agentic Future - Security Boulevard - April 7th, 2026 [April 7th, 2026]
- Best antivirus for Windows 11: Guide to choosing the right software - Acronis - April 7th, 2026 [April 7th, 2026]
- Work faster in Krita with these pro tips master the best free Photoshop alt - Creative Bloq - April 7th, 2026 [April 7th, 2026]
- JWM Guard Tour Patrol System - Battery Powered RFID Reader With LCD, Free Software For Security Monitoring - ruhrkanal.news - April 7th, 2026 [April 7th, 2026]
- Download the Free Guide: The 2026 Buyer's Guide to Hotel Management Software Released By Roommaster - Hotel News Resource - April 5th, 2026 [April 5th, 2026]
- Acer's Chromebook Plus Easter offer comes with free software worth more than the laptop itself, including GeForce Now - PC Guide - April 3rd, 2026 [April 3rd, 2026]
- Inside the German state trying to break free from Microsoft - Financial Times - April 3rd, 2026 [April 3rd, 2026]
- The Document Foundation Calls on Europe to Break Free from Proprietary Software - Linuxiac - April 3rd, 2026 [April 3rd, 2026]
- Fret Not, Some of These Apps are Free This Week! - nextpit.com - April 3rd, 2026 [April 3rd, 2026]
- Garmin smartwatch users may be green with envy over Coros latest free update - t3.com - April 3rd, 2026 [April 3rd, 2026]
- Get Your Free Apps of the Week Here! - nextpit.com - March 26th, 2026 [March 26th, 2026]
- Zeptive Software Update Boosts Vape Detection Performance - GlobeNewswire - March 22nd, 2026 [March 22nd, 2026]
- PRToolFinder Adds New Filters to Discover Free PR Tools and Free Software Trials Across its PR Tools Directory - Yahoo Finance - March 22nd, 2026 [March 22nd, 2026]
- Temecula DSP MDV-II: a free emulation of the Alesis MidiVerb II multi-FX processor - synth anatomy - March 22nd, 2026 [March 22nd, 2026]