Major Cyberattack on CDK Global Disrupts Operations at 15,000 Car Dealerships

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ICARO Media Group
Politics
19/06/2024 21h43

In a major cyber incident, CDK Global, a leading provider of automotive software solutions, has been targeted by hackers, causing the company to temporarily shut down most of its systems. This incident has resulted in significant disruptions for approximately 15,000 car dealerships across the United States.

CDK Global's software is widely used by auto dealerships, including General Motors, Group 1 Automotive, and Holman, to manage sales and various other services. The company's systems being offline have effectively halted sales operations at these dealerships.

Following the cyberattack, CDK Global promptly took action to investigate the incident and safeguard its customers' interests. A spokesperson for the company stated that they have suspended most of their systems out of an abundance of caution. CDK Global is diligently working to restore normal operations as quickly as possible.

After conducting tests and consulting with third-party experts, CDK Global announced that some of its systems have been restored. In a statement to CBS MoneyWatch, the company confirmed that its core dealer management system (DMS) and Digital Retailing solutions are operational. However, rigorous testing of all other applications is ongoing, with updates expected as they are brought back online.

CDK Global's DMS acts as a central hub for dealerships, enabling them to monitor operations from a single interface. Additionally, the company provides retail tools that allow dealerships to transact both online and in showrooms. These tools include features for managing payroll, inventory, and office operations.

Interestingly, some dealerships affected by the outage have found creative ways to continue their business operations. Employees have turned to using spreadsheets and sticky notes to sell small parts and make repairs while refraining from large-scale transactions. This adaptation demonstrates the resilience and resourcefulness of dealership staff during this challenging time.

CDK Global, known for its cybersecurity capabilities, offers a three-tiered cybersecurity strategy to prevent, protect, and respond to cyberattacks. Despite this, the cyber incident occurred on Tuesday evening, causing a significant disruption for CDK's customer base of 15,000 car dealerships.

As investigations into the cyberattack continue, CDK Global is working to strengthen its systems and prevent similar incidents in the future. The company understands the importance of providing reliable and secure software solutions to its clients and is committed to resolving the situation promptly.

The impact of this cyberattack serves as a reminder of the vulnerability that businesses face in the digital age. As technology continues to advance, it is crucial for organizations to remain vigilant and prioritize cybersecurity measures to protect themselves and their customers from potential threats.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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