CDK Global cyberattack disrupts car dealerships across US

ILLINOIS: Tech company CDK Global experienced a crippling cyberattack that disrupted operations for thousands of dealerships across the United States (US) on Wednesday.

The cyberattack forced CDK Global to quickly shut down its core dealership management system (DMS) and digital retailing solutions.

Read more: FIA warns against cybercriminals hacking Whatsapp accounts

CDK Global specialises in delivering data and technology solutions for automotive and related sectors. It provides cloud-based software solutions designed specifically for car dealerships across North America.

The company’s Senior Manager of External Communications stated that the decision to shut down systems was made out of caution upon detecting the cyber incident. The tech company carried out extensive testing and consulted with external cybersecurity experts to assess and mitigate the impact.

By the day’s end, CDK had restored functionality to its core DMS and digital retailing platforms. However, they continued testing other applications, with updates promised as these systems were brought back online.

Reports indicated that the cyberattack forced CDK to take its data centers offline during the early hours of the morning, affecting not only internal IT systems but also disrupting communications and applications critical for dealership operations. The disruption left dealerships scrambling, resorting to manual processes such as using spreadsheets and handwritten notes to manage sales and service transactions.

The latest cyber attack on CDK is yet another example of the growing threat cybercriminals pose to automotive retailers. A study conducted by the company in 2023 revealed that 17 per cent of surveyed dealerships had experienced cyber attacks in the preceding year, with impacts ranging from financial losses to operational disruptions.

The attacks often target sensitive customer data, including personally identifiable information and financial records, making automotive dealerships prime targets due to the interconnected nature of their systems with external service providers.

The fallout from such attacks extends beyond immediate operational disruptions. It can lead to prolonged downtime, reputational damage, and financial losses.

CDK Global has assured its customers of its commitment to cybersecurity, citing a three-tiered strategy aimed at preventing, protecting, and responding to cyber threats.

Read more: Islamabad Safe City online system disabled after hacking attempt

As automotive industry becomes increasingly more reliant on digital platforms for day-to-day operations, cyberattacks will continue to rise.