Minnesota Auto Dealers Struggle as Cyberattack Leaves Vendors without Software

https://icaro.icaromediagroup.com/system/images/photos/16271031/original/open-uri20240625-56-1kjrb8n?1719359390
ICARO Media Group
Politics
25/06/2024 23h45

Minnesota auto dealers are currently facing the aftermath of a cyberattack that occurred nearly a week ago, causing disruptions in day-to-day operations, including vehicle sales. The cyberattack targeted CDK Global, an Illinois-based software company serving nearly 15,000 auto dealers in the U.S. and Canada.

CDK Global stated that the restoration process is expected to take "several days" after experiencing back-to-back cyberattacks last Wednesday. As a result, auto dealers such as Anderson & Koch Ford, Inc. in North Branch, Minnesota, have been forced to cope with significant disruptions in their normal workflow.

Patrick Fossum, the General Manager of Anderson & Koch Ford, Inc., explained that when he arrived at work last Wednesday, he discovered that the software system they heavily relied on was down. Since then, the dealership has been operating with limited functionality, relying on a separate electronic system and resorting to manual tasks such as writing paper checks and completing titles by hand.

Fossum estimated that at least half of Ford dealerships use CDK software and acknowledged that while there have been minor service interruptions in the past, the current situation is unprecedented. He mentioned that their systems are still running for customer-facing operations, but internally, they will have a significant backlog of data entry once the software is restored.

CDK Global has not provided specific updates to the dealership beyond the information available publicly. Reports from Bloomberg News indicate that the cybercrime group BlackSuit is responsible for the ransomware attack. Ransomware attacks involve encrypting files, making them unusable, and demanding payment in exchange for decryption. Bloomberg reported that BlackSuit has demanded a ransom of tens of millions of dollars, which CDK Global has allegedly agreed to pay, although the company has not confirmed this publicly.

The prolonged outage and uncertainty surrounding the restoration process have created challenges for Minnesota auto dealers and their customers. As the affected dealerships navigate through this difficult situation, they are working tirelessly to minimize disruptions and provide the best service possible to their customers.

It is crucial for both the affected vendors and CDK Global to swiftly resolve the cyberattack and strengthen cybersecurity measures to prevent future incidents that can disrupt critical operations within the automotive industry.

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

Related