A cyberattack on CDK Global, a major software provider for car dealerships, has disrupted operations at approximately 15,000 U.S. dealerships. The attack led to the shutdown of most of CDK's systems, affecting sales, service, and operations. Despite partial restoration of some systems, the full impact and recovery timeline remain uncertain as investigations continue.
CDK Global, a prominent software provider for car dealerships, recently suffered a significant cyberattack, leading to widespread operational disruptions across approximately 15,000 dealerships in the U.S. This incident has highlighted the vulnerabilities in the automotive retail sector and raised questions about cybersecurity measures within the industry.
The cyberattack on CDK Global began on a Tuesday evening, causing the company to shut down most of its systems to prevent further damage. This action left many dealerships unable to conduct normal operations, impacting sales and service activities. Dealerships resorted to manual processes like using spreadsheets and sticky notes to manage some of their operations during the outage. The company's core dealer management system and digital retailing solutions were restored by the following afternoon, but many other applications remained offline as further assessments and repairs continued.
CDK Global promotes a three-tiered cybersecurity strategy aimed at preventing, protecting, and responding to cyberattacks. However, the recent incident has exposed potential gaps in their defenses and highlighted the broader vulnerabilities within the automotive retail industry. A report from CDK itself notes an increase in cyberattacks on car dealerships, with significant financial and operational impacts reported by affected dealers. The interconnected nature of dealership systems and the sensitive customer data they hold make them attractive targets for cybercriminals.
Following the cyberattack, CDK Global has been working to restore all its systems and reassess its security protocols. The company has restored some key systems and continues to test other applications before bringing them fully back online. This incident serves as a critical reminder for the industry to bolster cybersecurity measures and for dealerships to evaluate their preparedness for such disruptions. The ongoing investigations will hopefully shed light on the perpetrators and the vulnerabilities exploited during the attack.
The cyberattack on CDK Global has not only disrupted immediate business operations but also raised significant concerns about cybersecurity in the automotive retail industry. As CDK works to recover and secure its systems, the incident underscores the need for continuous improvement in cybersecurity practices across the sector.
"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." - CDK spokesperson