Retail technology and software provider CDK Global is in the process of restoring systems used by over 15,000 retail locations across North America following a cyber attack. The company has been investigating the incident since it occurred on June 19, causing widespread disruption to car dealerships. According to reports, a group of hackers has demanded ransom money in exchange for ending the attack. CDK Global provides software solutions to car dealerships and briefly shut down all its systems last week due to the cyber incident. US auto retailers Sonic Automotive and Penske Automotive were among those affected by the outage, which lasted for several days. The company had previously been taken private by investment firm Brookfield Business Partners in April 2022 for $6.41 billion.
CDK Global confirmed that it is restoring its systems and expects the process to take 'several days.' Dealers have been advised to use alternative methods to conduct business during this time. The company has not yet disclosed any details about the nature of the cyber attack or who was behind it. Bloomberg News reported that negotiations were ongoing between CDK Global and an Eastern European-based hacker group demanding millions of dollars in ransom.
The cyberattack on CDK Global's software systems has caused significant disruption to car dealerships across North America, with many having to implement temporary solutions to maintain retail operations. Dealers have been advised to be cautious of phishing scams and take precautions to secure sensitive information such as passwords. The National Automobile Dealers Association (NADA) is seeking information from CDK on the nature and scope of the cyber incident, so dealers are able to respond appropriately.
The impact of the outage could slow down business and cause shipping delays at dealerships as the summer season gears up. In 2023, car dealer sales in the United States topped $1.2 trillion. Car manufacturer Ford is working with dealers to set up alternative software systems and other workarounds, while encouraging customers to contact their local dealership for information.
Several dealerships on the East Coast are manually filling out forms to process sales and have been experiencing issues with registering purchased cars with the state. One used car dealership is filing paperwork by hand and sending runners to the car registry with the paperwork. Another dealer is still selling cars but cannot complete transactions in a timely manner.
Penske Automotive, which mainly serves businesses, uses CDK's dealer management system for its Premier Trucking Group division. The company is working on implementing response plans and its 48 PTG locations remain operational. Sonic Automotive also reported that it was operational but was instating 'workaround solutions to minimize the disruption caused by this CDK outage.'
CDK Global's cyber attack serves as a reminder of the importance of robust cybersecurity measures for businesses and organizations, particularly those in the retail sector. It is crucial for companies to have contingency plans in place to mitigate the impact of such incidents and ensure business continuity.
