CDK Hit by Major Cyber Attack, Auto Dealers Experiencing Disruption
CDK Global Inc., a major provider of technology and software for auto dealers, reported a significant cyber incident on Wednesday. According to sources, a group of hackers has claimed responsibility. They have demanded millions of dollars in ransom to end the attack, which has disrupted auto dealerships across the United States. The attackers are believed to be from Eastern Europe.
Cyber Attack Details and Response
CDK announced it is working with cybersecurity experts to investigate the attack. The company has also notified law enforcement and started the process to restore their systems. CDK said the restoration will take several days.
CDK's statement emphasized, "In the interim, we are actively engaging with our customers to provide them with alternate ways to conduct business." This means they are looking for temporary solutions to help their clients continue operations while the issue is being fixed.
Impact on Auto Dealers
Major auto retailers in the U.S. like Sonic Automotive and Penske Automotive reported disruptions to their operations on Friday, marking the third consecutive day of outage caused by the attack.
Ford also confirmed that their dealers using CDK were affected by the outage but assured that many Ford and Lincoln customers can still receive services through alternative processes set up by the dealers.
- Sonic Automotive stated that while their dealerships remain open, the disruption has negatively impacted their operations. They are working to minimize the problem but cannot yet determine if their financial condition will be affected.
- Penske Automotive said their Premier Truck Group, which uses CDK’s disrupted software, is continuing operations by relying on manual or alternate processes.
Industry-Wide Reactions
Other major players in the automotive industry are also taking steps to manage the situation. For instance, Kia America mentioned working with affected dealers to reduce the impact of the outage and move towards "business as usual."
CDK Global Inc., which services over 15,000 retail locations across North America, is working hard to resolve the issue and ensure that its customers can continue their business operations smoothly.
What is a Cyber Incident?
A cyber incident involves unauthorized access to or attack on a computer system. For example, if someone manages to break into your home computer and steal personal information, that's a cyber incident. In this case, hackers have broken into CDK's systems demanding a ransom.
Ransom is like when someone steals your valuables and asks you to pay money to get them back. Here, the hackers are asking CDK to pay them money to stop the attack and restore their systems.
Conclusion
In summary, CDK Global Inc.'s systems have been significantly impacted by a cyber attack that has left many auto dealerships in the United States struggling with operations. The company is working with experts and law enforcement to resolve the issue. Major auto retailers and manufacturers are looking for alternative ways to provide services during this period.
This incident underscores the importance of robust cybersecurity measures to protect against similar attacks.
