Major Software Provider Hit by Cyberattack
CDK Global, a major auto industry software provider, experienced back-to-back cyberattacks last Wednesday. These attacks have severely impacted approximately 15,000 auto dealerships in the United States and Canada.
Operational Disruptions
The cyberattacks have left dealerships unable to process appointments for car maintenance and repairs or complete sales transactions, including signing buyers up for financing and insurance. As a result, several major auto companies, including Ford, Stellantis, and GM, have confirmed that some of their dealerships are affected.
Response and Investigation
CDK Global has shut down all systems as a precaution and is currently investigating the incident. While the company has not disclosed who is responsible for the cyberattacks, Bloomberg reports that the hackers are demanding tens of millions of dollars in ransom to restore operations.
Impact on Dealerships
Dealerships are being forced to switch to manual processes to serve customers, leading to possible delays and disruptions. Some vehicle orders may even be written by hand as operations remain down. CDK Global has not provided a timeline for when systems will be fully restored, and dealerships have been informed that operations could be down for several days.
Customer Impact
Customers may experience delays in getting vehicle maintenance, repairs, and completing car purchases. The outage has caused significant inconvenience, with some dealerships reverting to old-fashioned methods to continue their operations.
Conclusion
The cyberattack on CDK Global has caused widespread disruption across thousands of car dealerships, highlighting the vulnerability of digital systems in the auto industry and the significant impact such attacks can have on daily operations.
