Today, CDK Global, a major software provider for car dealerships in the US, announced that they suffered a major cyberattack, forcing the company to temporarily shut down most of its systems. This breach has effectively halted sales operations at approximately 15,000 car dealerships, including those of major brands such as General Motors, Group 1 Automotive and Holman. CDK Global's Dealer Management System (DMS), which is critical to managing dealership operations, was among the affected systems.
A CDK spokesperson stated: “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 soon as possible.” The hack began on Tuesday evening, causing widespread disruption. CDK announced that some systems were back online Wednesday afternoon, but extensive testing and restoration efforts are still ongoing.
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The impact of this cyber attack on CDK Global highlights the growing vulnerability of critical systems to cyber threats. Employees at affected dealerships resorted to using manual methods, such as spreadsheets and sticky notes, to continue operating. This incident highlights the need for strong cybersecurity measures to protect against such breaches.
This recent attack on CDK Global comes on the heels of another major cyber incident Findlay Automobile Group. Just a few weeks ago, Findlay, which operates dealerships in Nevada, Utah, Arizona, Washington and Idaho, reported a cybersecurity issue affecting its computer systems. The outage limited the company's ability to conduct sales and service, although all locations remained open. Findlay immediately investigated with cybersecurity experts and law enforcement to address the breach.
However, the situation escalated when customers Karen Smith and Pholisith Bouphapraseuth filed one collective demand v. Findlay in Clark County District Court. They alleged that the company failed to safeguard confidential customer information, including names, addresses, driver's licenses, social security numbers and financial data. The lawsuit claimed Findlay employees received ransom notes from the “Scattered Spider” ransomware group, known for targeting large corporations. The plaintiffs are seeking damages, restitution and injunctive relief, alleging ongoing losses due to the breach.
These incidents illustrate a disturbing trend of increased cyberattacks targeting the automotive sector. With hackers becoming increasingly sophisticated, businesses must improve their cybersecurity measures to protect sensitive data and maintain operational integrity. The frequency and severity of these attacks are likely to increase, requiring vigilant and proactive strategies by businesses and cybersecurity experts as the US navigates these tumultuous times.
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