Square Confirms Outage Caused by DNS Issue, Not Malicious Cyber Activity

Block, Inc SQ stock gained after it clarified that a cyberattack was not responsible for the recent outage that disrupted its payment technology services. 

Customers and small businesses experienced difficulties using Square's services during the outage from Thursday through early Friday. 

Also Read: Block Profits Likely To Bear Brunt Of Consumer Spend And User Slowdown In Cash App, UBS Analyst Says

The disruption at the fintech firm began around 12 p.m. PT on Thursday and left sellers unable to access accounts or process credit card payments. 

Around 49% of the users faced issues related to the Cash App, 34% related to purchases, and 17% related to the website.

The disruption affected a crucial element of Block's infrastructure, specifically the Domain Name System (DNS). 

The problem arose when Block implemented routine modifications to its internal network software. 

Unfortunately, the simultaneous application of these updates hindered the effective communication between its systems, leading to service interruption. 

Additionally, the incident impacted various internal tools used for troubleshooting and support, rendering them temporarily inaccessible.

There was no indication that this incident constituted a cybersecurity event or evidence suggesting that the outage resulted in any compromise of seller or buyer data.

Square addresses the recent service disruption by implementing system updates, offline payment expansion, and enhanced communication.

Price Action: SQ shares traded higher by 1.24% at $53.74 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.