A massive cyber attack on CDK Global, a software vendor for car dealerships, caused significant disruptions for more than 15,000 dealerships across the country. The outage, which lasted for nearly two weeks, had a major impact on the auto industry, potentially costing more than $600 million in lost sales.
Initially, the attack was believed to be the work of a ransomware gang called BlackSuit, with demands of tens of millions of dollars. Despite CDK’s efforts to restore services promptly, the process took longer than expected, leaving dealerships scrambling to catch up with backlogs of paperwork.
During the outage, many dealerships had to resort to manual methods of tracking repair parts and customer information, using tools like Excel sheets and phone calls to manage operations. Some dealers even resorted to creating editable PDFs of contracts to continue servicing customers.
As the dust settles and CDK’s services are gradually being restored, the industry is bracing for potential future attacks. With the increased reliance on digital systems, dealerships are looking for ways to prepare for similar outages in the future. Some are considering implementing “no Internet days” as a contingency plan, while others are reviewing their privacy practices to ensure compliance with regulations.
The economic impact of CDK’s shutdown is expected to be significant, with analysts estimating losses of over $600 million during the two-week period. This disruption is likely to have a lasting effect on June auto sales, contributing to a slump in the market.
Moving forward, the auto industry faces the challenge of enhancing cybersecurity measures to prevent future attacks and minimize the impact of potential disruptions. By staying vigilant and implementing robust security protocols, dealerships can protect their business operations and safeguard against cyber threats in an increasingly digital environment.
