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Millions lost through Excel: 5 fatal mistakes

A small typo in Excel and suddenly millions are at stake – why trusting spreadsheets is riskier for companies than many think.

Joshua Metschulat

26. Oktober 2024

Millions lost through Excel: 5 fatal mistakes

Since their debut in 1979, electronic spreadsheets have transformed business operations globally. Today, Microsoft Excel remains the most widely used spreadsheet tool, with an estimated 81% of businesses utilizing it for tasks ranging from tracking employee information to generating reports and managing budgets.


However, this heavy reliance on spreadsheets brings significant risks. Although human error can impact any software, the relative lack of security features in spreadsheets makes them particularly vulnerable to cyber threats and internal mistakes. Just two years ago, the Mimecast Threat Center identified a security gap in Excel’s Power Query tool that could allow hackers to embed malicious content within data files.


As businesses increasingly depend on spreadsheets, the consequences of errors have become more pronounced. Over recent years, spreadsheet mistakes have led to significant financial and operational setbacks for some major companies. Below, we examine five of the most notable incidents highlighting the risks of spreadsheet reliance:



Hero Image Kodak Film

Kodak’s $11 Million Severance Error Due to an Excel Typo

In 2005, Kodak, the industry leader in film production, had to restate a combined $11 million in losses over two quarters due to a single Excel typo. A document covering employee severance and retirement benefits contained an extra zero in a calculation, which overstated severance payments by $11 million. This costly mistake occurred during a time when Kodak was already struggling financially, compounding the company’s woes.




Barclays Capital Spends Millions on Unwanted Contracts Due to Excel Formatting Mistake

2008 was a tumultuous year for banks, and Barclays Capital was no exception. Seeking to acquire Lehman Brothers contracts after its bankruptcy, Barclays compiled an Excel sheet detailing the contracts it wanted. However, due to a formatting error, the report included hidden rows with contracts that were not meant to be acquired. When this document was exported to PDF for court submission, the hidden contracts were included, legally binding Barclays to these unintended acquisitions – and costing the bank millions.




MI5 Accidentally Bugs the Wrong Phones Due to Spreadsheet Formatting Error

Accurate data handling is crucial, especially for national security agencies. In 2010, the British intelligence agency MI5 mistakenly bugged over a thousand mobile phones due to an Excel formatting error. A “000” was erroneously added to phone numbers in a spreadsheet, leading the agency to intercept incorrect data. The culprit? A spreadsheet formatting mishap that caused a serious operational blunder.




London Olympics Oversells 10,000 Tickets Due to an Excel Typo

While preparing for the London Olympics, a simple typo in a spreadsheet led organizers to sell 20,000 tickets for a swimming event that could only accommodate 10,000 spectators. This error was discovered after the tickets had already been purchased. To rectify the situation, the Olympic committee upgraded these oversold tickets to other main events, resulting in delighted customers but an embarrassing mishap for the organizers.




JP Morgan’s $6 Billion Loss Due to an Excel Copy-Paste Error

Even in the high-stakes world of finance, spreadsheet errors can have catastrophic effects. In 2012, JP Morgan experienced a $6 billion trading loss due to a formula error in an Excel-based value-at-risk model. A financial analyst mistakenly used the sum instead of the average in a formula, causing inaccurate results that went unnoticed until significant damage had been done. This costly oversight highlights how even the smallest spreadsheet errors can lead to monumental losses.


Each of these incidents demonstrates the risks companies take when relying heavily on spreadsheets. As digital security and data accuracy become ever more critical, businesses should consider alternative tools that minimize errors and offer robust security features.


Since their debut in 1979, electronic spreadsheets have transformed business operations globally. Today, Microsoft Excel remains the most widely used spreadsheet tool, with an estimated 81% of businesses utilizing it for tasks ranging from tracking employee information to generating reports and managing budgets.


However, this heavy reliance on spreadsheets brings significant risks. Although human error can impact any software, the relative lack of security features in spreadsheets makes them particularly vulnerable to cyber threats and internal mistakes. Just two years ago, the Mimecast Threat Center identified a security gap in Excel’s Power Query tool that could allow hackers to embed malicious content within data files.


As businesses increasingly depend on spreadsheets, the consequences of errors have become more pronounced. Over recent years, spreadsheet mistakes have led to significant financial and operational setbacks for some major companies. Below, we examine five of the most notable incidents highlighting the risks of spreadsheet reliance:



Hero Image Kodak Film

Kodak’s $11 Million Severance Error Due to an Excel Typo

In 2005, Kodak, the industry leader in film production, had to restate a combined $11 million in losses over two quarters due to a single Excel typo. A document covering employee severance and retirement benefits contained an extra zero in a calculation, which overstated severance payments by $11 million. This costly mistake occurred during a time when Kodak was already struggling financially, compounding the company’s woes.




Barclays Capital Spends Millions on Unwanted Contracts Due to Excel Formatting Mistake

2008 was a tumultuous year for banks, and Barclays Capital was no exception. Seeking to acquire Lehman Brothers contracts after its bankruptcy, Barclays compiled an Excel sheet detailing the contracts it wanted. However, due to a formatting error, the report included hidden rows with contracts that were not meant to be acquired. When this document was exported to PDF for court submission, the hidden contracts were included, legally binding Barclays to these unintended acquisitions – and costing the bank millions.




MI5 Accidentally Bugs the Wrong Phones Due to Spreadsheet Formatting Error

Accurate data handling is crucial, especially for national security agencies. In 2010, the British intelligence agency MI5 mistakenly bugged over a thousand mobile phones due to an Excel formatting error. A “000” was erroneously added to phone numbers in a spreadsheet, leading the agency to intercept incorrect data. The culprit? A spreadsheet formatting mishap that caused a serious operational blunder.




London Olympics Oversells 10,000 Tickets Due to an Excel Typo

While preparing for the London Olympics, a simple typo in a spreadsheet led organizers to sell 20,000 tickets for a swimming event that could only accommodate 10,000 spectators. This error was discovered after the tickets had already been purchased. To rectify the situation, the Olympic committee upgraded these oversold tickets to other main events, resulting in delighted customers but an embarrassing mishap for the organizers.




JP Morgan’s $6 Billion Loss Due to an Excel Copy-Paste Error

Even in the high-stakes world of finance, spreadsheet errors can have catastrophic effects. In 2012, JP Morgan experienced a $6 billion trading loss due to a formula error in an Excel-based value-at-risk model. A financial analyst mistakenly used the sum instead of the average in a formula, causing inaccurate results that went unnoticed until significant damage had been done. This costly oversight highlights how even the smallest spreadsheet errors can lead to monumental losses.


Each of these incidents demonstrates the risks companies take when relying heavily on spreadsheets. As digital security and data accuracy become ever more critical, businesses should consider alternative tools that minimize errors and offer robust security features.


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Geschrieben von

Joshua Metschulat

Joshua Metschulat

Co-Founder & CEO

Joshua Metschulat is co-founder and CEO of Splinde. He previously developed the Excel calculation standard used by over 250 advertising film productions in German-speaking countries. He used this experience to create an innovative SaaS solution for intuitive budget management and calculation that makes complex projects easier and safer.

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