What led to CDK Global’s shutdown?
A significant cyberattack on CDK Global has disrupted operations nationwide. CDK Global is a prominent provider of cloud-based software for car dealerships.
The attack occurred on Wednesday. It prompted CDK to shut down most of its systems “out of an abundance of caution” to protect its customers, according to spokesperson Lisa Finney.
Although CDK managed to restore some systems later that afternoon, another cyberattack later that evening forced a renewed shutdown.
This ongoing disruption compelled dealerships to revert to manual, handwritten forms to continue their operations.
The restoration process began on Saturday, and they expect to take “several days” to complete it.
Why are car dealerships prime targets for a cyberattack?
The CDK Global cyberattack serves as a stark reminder of the critical need for robust cybersecurity in the automotive industry.
As dealerships increasingly rely on digital systems for operations, the risks of cyberattacks grow. The cyberattack on CDK Global highlights the vulnerability of car dealerships to such incidents.
Car dealerships are lucrative targets for cybercriminals due to the vast amounts of sensitive customer data they store. This includes credit applications and financial information.
A report from CDK in 2023 revealed that 17% of 175 surveyed dealers experienced a cyberattack in the past year. In the previous year this was 15%.
The interconnected nature of dealership systems with external service providers further exacerbates their vulnerability.
The attack on CDK follows a similar incident involving Findlay Automotive Group. It demonstrates a growing trend of cyber threats in the automotive industry.
With dealerships lacking robust cybersecurity measures, they remain attractive targets for hackers seeking valuable data.
How are car dealerships coping?
Car dealerships across the U.S. are feeling the strain of CDK Global’s system outage after the cyberattack.
Many dealerships, like those in the Northtown Automotive Companies near Buffalo (New York), have resorted to contingency plans involving manual operations.
Craig Schreiber, one of Northtown’s owners, mentioned that their prior preparations have allowed them to manage this crisis, albeit with significant operational disruptions.
Kia America’s vice president of sales operations, Eric Watson, acknowledged the impact on many Kia dealers. He advised them to use manual tools until the systems are back online.
This shift to “old school” methods has led to inevitable backlogs. Moreover, it complicates day-to-day activities and impacts customer service efficiency.
This incident has not only disrupted dealership operations. It also highlighted the potential for significant financial and operational impacts.
Car buyers should therefore be vigilant, as their personal information may be at risk.
Monitoring credit reports, securing identity theft protection, and being cautious of phishing attempts are recommended steps for consumers.
Also, the automotive industry must prioritize enhancing cybersecurity measures to safeguard sensitive data and maintain operational continuity in the face of evolving cyber threats.
