Car dealerships across North America are still grappling with major disruptions following cyberattacks on CDK Global, a software provider essential to the auto retail sales sector.
Operations of Auto Dealers Disrupted After CDK Global Cyberattacks
CDK Global, a leading software provider for thousands of auto dealers in the US and Canada, experienced back-to-back cyberattacks last Wednesday, resulting in an ongoing outage affecting operations. CDK serves a vast network of over 15,000 retail locations throughout North America.
As a result, the Associated Press reported that prospective car buyers face delays at dealerships, with some resorting to manual processes to complete vehicle orders.
CDK Global anticipates that restoring normal operations will take "several days." In response to the crisis, Group 1 Automotive Inc., a major automotive retailer, has shifted to "alternative processes" to continue serving customers.
Similarly, Lithia Motors and AutoNation have implemented contingency plans to maintain operations amid the ongoing disruption. Headquartered in Hoffman Estates, Illinois, near Chicago, CDK Global offers dealerships essential software solutions that help in various daily operations, such as vehicle sales, financing, insurance, and repairs.
Car dealerships across North America are still grappling with major disruptions following cyberattacks on CDK Global.JOHANNES EISELE/AFP via Getty Images
CDK Global Responds to Cyberattacks, Initiates Recovery
The first cyberattack on CDK Global led to a preemptive shutdown of all its systems. After the second attack, the company was forced to take most systems offline. Over the weekend, CDK announced that it had begun the restoration process.
It also confirmed that it launched an investigation into the cyber incident with the assistance of external experts and notified law enforcement. According to the company, the restoration process will take several days. CDK is working closely with its customers to provide alternative methods for continuing their business operations.
CDK also cautioned its customers about potential imposters claiming to be affiliated with the company and attempting to gain access to systems through deceptive means. They advised vigilance against phishing attempts.
While the incident displayed typical characteristics of a ransomware attack, where victims are asked to pay a ransom for access to encrypted files, CDK refrained from confirming or denying any ransom demands.
According to Cliff Steinhauer, director of information security and engagement at the National Cybersecurity Alliance, such attacks often culminate in ransomware demands. He noted that these incidents have become increasingly common across various sectors in recent years, underscoring the vulnerability of all organizations, including software companies, to such threats.
Last week, major automakers like Stellantis, Ford, and BMW acknowledged that the CDK outage had affected operations at some of its affiliated dealerships. However, it assures that sales activities are still ongoing.
Amid the ongoing disruptions, a spokesperson from Stellantis noted that many dealerships had shifted to manual processes to assist customers, including manually recording orders.
A Ford spokesperson acknowledged that the outage could lead to delays and inconveniences at some dealerships and for some customers. Nevertheless, many Ford and Lincoln customers are receiving sales and service assistance through alternative methods implemented at dealerships.
