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Car dealerships’ software shut down after cyber attack
A cyber assault on software program supplier CDK World upended operations at automotive dealerships throughout the U.S. on Wednesday.
CDK spokesperson Lisa Finney stated the corporate shut down most of its programs “out of an abundance of warning” for patrons. By Wednesday afternoon, the corporate had restored its core doc administration system and digital retailing options.
“We’re persevering with to conduct intensive checks on all different purposes, and we are going to present updates as we carry these purposes again on-line,” Finney stated in an emailed assertion.
Finney didn’t reply to questions on what number of dealerships had been impacted, however CDK’s web site says the corporate works with greater than 15,000 retail areas throughout North America.
What does CDK World do?
One of many main suppliers of cloud-based software program to dealerships within the nation, CDK’s software program helps dealerships handle automobile acquisitions, gross sales, financing, insuring, repairs and upkeep. The corporate’s web site says it provides a “three-tiered cybersecurity technique to stop, shield and reply to cyberattacks.”
Why are automotive dealerships focused by cyber assaults?
The incident follows a cyber assault in opposition to Findlay Automotive Group final week. The automotive group – which operates in 5 states – stated the assault restricted its potential to conduct gross sales and repair, based on reporting from the Las Vegas Overview-Journal.
A 2023 report from CDK notes that cybercriminals are a rising menace to focus on automotive dealerships, with 17% of 175 surveyed sellers experiencing a cyber assault or incident throughout the previous yr, up from 15% the yr prior. Of these sellers, 46% stated the cyberattack had a destructive monetary or operational influence.
Dealerships have been a sexy goal due to the huge quantities of delicate buyer information they maintain. From credit score purposes to buyer monetary info, dealerships maintain a “treasure of data” to hackers, based on a 2023 article from insurance coverage firm Zurich North America.
“As well as, dealership programs are sometimes interconnected to exterior interfaces and portals, comparable to exterior service suppliers,” the report reads. And plenty of dealerships “lack fundamental cyber safety protections.”
