A major cyberattack on CDK Global, a leading software provider for auto dealerships, has caused widespread disruption to businesses across North America. Approximately 15,000 car dealerships in the US and Canada have been affected by the attack.
CDK Global provides software-as-a-service (SaaS) used by car dealerships for sales, financing, inventory, service, and back office functions. The outage has forced many dealerships to switch to manual processes due to the disruption of these critical systems.
The BlackSuit ransomware gang is believed to be behind the attack. Negotiations between CDK and the threat actors are ongoing in an attempt to receive a decryptor and prevent data leakage. The group launched in May 2023 and is linked to attacks on at least 350 organizations worldwide since September 2022, with more than $275 million in ransom demands.
The outage has caused significant issues for car dealerships, including problems processing financial transactions for deals and managing inventory. Dealers have had to rely on manual methods such as spreadsheets and sticky notes to sell small parts and make repairs, but large transactions are not being processed.
Ford is providing assistance to its dealers by offering alternative processes for sales and service support. However, the impact of the outage extends beyond just sales and services. Dealerships have also reported issues with financing and insurance, rebates and incentives, payroll systems, vehicle repair/maintenance services, and more.
The cyberattack on CDK Global is not an isolated incident. In recent years, there has been a surge in ransomware attacks targeting various industries. These attacks can cause significant damage to businesses and their customers. It is essential for organizations to take steps to protect themselves from such threats, including implementing robust cybersecurity measures and regularly backing up critical data.
