A gang claiming to have hacked CDK Global, a North American car dealership software company, is seeking tens of millions of dollars in ransom.
Eastern European hackers have caused major problems. CDK Global's systems have been down "out of an abundance of caution" for three days, affecting U.S. dealerships, according to a report from USA Today.
According to Bloomberg sources, CDK Global plans to pay the ransom, although talks are continuing and may alter.
CDK Global representative Lisa Finney said most systems were shut down Wednesday. Some systems were momentarily restored that afternoon but shut down again after more intrusions. CDK informed its customers that they are "once again proactively shutting down most of our systems "for continued protection.
CDK Global informed legal enforcement and initiated an investigation with external specialists. The corporation is investigating the cyberattack's impact and has not set a deadline for system recovery. Dealerships claim CDK system troubles as the outage continues.
The Impact of CDK Global Cyberattack
The CDK Global cyberattack affects auto dealerships and people buying or servicing cars. Multiple clients told BleepingComputer that system disruptions prevented them from buying automobiles or getting service.
CDK's platform manages inventory, vehicle registration, and finance, so dealerships can't sell or must use manual methods. Dealerships have warned of part delays for car owners needing servicing.
On June 20, CDK Global informed us that they no longer have an anticipated timeline for system restoration and that the outage may last several days.
Lisa Finney noted the business is working with third-party specialists to restore services quickly. "We are diligent in restoring services and getting dealers back to normal as soon as possible."
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Ford and Sonic Automotive have reported operational issues due to the assault. Over 15,000 North American retailers use CDK Global.
The recent breach impacted CDK Global's dealer management system (DMS), which automobile vendors use for payroll, inventory, customer interactions, and office operations. Car purchasers may also get finance and insurance through the system.
(Photo : Scott Olson/Getty Images)
Cars sit on a Chevrolet dealership's lot on June 20, 2024 in Chicago, Illinois. A cyber attack on CDK Global, a software provider that helps dealerships manage sales and service, has crippled the workflow at approximately 15,000 dealerships across the United States and Canada.
Business As Usual for Some Dealers
Despite its website's "three-tiered cybersecurity strategy to prevent, protect, and respond to cyberattacks," CDK Global was breached.
Some dealerships operated creatively throughout the downtime. Reddit users reported utilizing spreadsheets and sticky notes to organize minor purchases and repairs, but not huge transactions, per CBS News.
Sonic Automotive said its dealerships are operational and working to minimize CDK Global hack inconveniences. The corporation recognized a "negative impact" on operations but could not estimate the financial impact of the outage.
Premier Truck Group, which sells new and used commercial vehicles, uses CDK's disrupted dealer management system, according to Penske Automotive Group.
The automotive body noted that Premier Truck Group has "implemented its business continuity response plans" and continues its operation in all locations via "manual or alternate processes," as reported by Reuters. Moreover, Kia America is working with impacted dealers to minimize the disruption and keep "business as usual."
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