On Monday June 17th, CDK Global was the victim of a cyberattack, which led to a software outage affecting close to 15,000 auto dealers across North America. Here’s a breakdown of how this incident has impacted car dealerships and how you can protect your dealership.
CDK Global is a leading provider of data and technology software for over 15,000 automotive dealerships in North America. Its technology is used by dealers to help with day-to-day operations such as completing vehicle sales, financing, insurance and repairs.
BlackSuit, an established ransomware group, hacked CDK Global’s software systems. CDK spokesperson Lisa Finney wrote in a statement to The Enquirer on Wednesday, June 19th, “We are actively investigating a cyber incident. Out of an abundance of caution and concern for our customers, we have shut down most of our systems and are working diligently to get everything up and running as quickly as possible.”
The following morning, June 20th, the company announced that another incident happened. “We experienced an additional cyber incident and proactively shut down most of our systems. In partnership with third-party experts, we are assessing the impact and providing regular updates to our customers.”
Bloomberg News reported that the hackers responsible for the attack demand millions of dollars in ransom to put an end to the situation and restore CDK’s system.
The CDK shutdown is disrupting around 15,000 car sellers from the United States to Canada that depend on CDK's software. 3 major auto companies confirmed the CDK shutdown had impacted some of their dealers.
Representatives of the following dealerships have spoken to news outlets to explain how their business has been affected by the cyber attack.
April Ancira, vice president of Ancira Auto Group in San Antonio, spoke to KSAT 12 and stated the shutdown affects “Customers who are looking for help with everything from buying to repairing their cars.”
Thad Szott, dealer partner of Szott Auto Group and president of Detroit Auto Dealers Association, spoke to CNBC to explain how every dealership in Michigan is affected. Dealers “have to physically drive paperwork to the state to get new sales approved.”
According to a statement sent to CNN Business, Ryan Callahan, sales manager of Tasca Mazda in Seekonk, Massachusetts, explained how the shutdown will affect the financial aspect of his business long-term. “The financial impact it will directly have on us will take months to correct, if not years.”
Plaza Ford in Bel Air, Maryland, has been forced to shut down completely. General Manager Katie Walls Gugliotta told CBS News Baltimore “We are completely dead in the water. We just took the hard choice of deciding to shut down at this point because it's just too hard.”
On Saturday June 22nd, A CDK spokesperson told CNN, “We anticipate that the process will take several days to complete, and in the interim we are continuing to actively engage with our customers and provide them with alternative ways to conduct business.”
According to a copy of a CDK email obtained by CBS MoneyWatch, CDK told their clients that restoring its systems will "take several days and not weeks."
The best way you can protect your dealership is to prioritize cybersecurity. As cyber threats are constantly evolving, businesses must remain aware of potential threats and protect their systems and data.
Cliff Steinhauer, director of information security and engagement at the National Cybersecurity Alliance, suggests those impacted should monitor their credit and consider signing up for identity theft monitor insurance. He states “data is a valuable target and you have to make sure that you’re taking steps to protect it.”
CDK also mentioned in an email to their clients that dealers should be alert of phishing scams or organizations posing as CDK.
As dealerships navigate through this situation, ensuring your operations run smoothly is more important than ever. Knowing the effects of what’s going on with CDK and how to protect your dealership can help you stay on track during this time.
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