Cyberattacks on CDK Global, a major software provider for the automotive industry, have severely impacted auto dealerships across the U.S., making it nearly impossible for dealers to process sales.
According to a recent CBS News report, Tom Maoli, owner of Celebrity Motor Car Company, reported his business is “completely shut down” due to the inability to process paperwork and financial transactions. This disruption is particularly damaging during the summer sales season, as customers may walk away due to delays.
CDK Global shut down its services on Wednesday as a precautionary measure, only to suffer another cyberattack shortly after. The DMS, used by around 15,000 dealerships, remained down through Friday, causing significant issues for dealers and customers.
Moreover, CDK has not provided a timeline for when services will be fully restored, and the financial impact is expected to be substantial given that CDK powers sales for roughly half of U.S. car dealerships.
Due to the disruption, Maoli is considering a class-action lawsuit against CDK Global. However, the company has warned customers about scammers posing as its IT support staff and urged vigilance against phishing attempts.
Additionally, Cox Automotive has responded to the attack by stating, “Supporting business continuity for our clients remains our top priority. On June 19th, as a precautionary measure to prioritize safety and security for our clients, we temporarily suspended integrations with CDK and their systems/solutions. We are continually monitoring our networks and systems and taking necessary actions to support our customers’ business continuity. While actively supporting our customers’ continued business operations, we established a secure microsite that our customers are actively using now to access support and guidance, workarounds, and actions they can take while CDK systems are not available.”
Nevertheless, CDK Global continues to address cybersecurity challenges and commits to regular updates. This situation emphasizes how important digital systems are in the automotive industry and illustrates the widespread consequences of compromising them.
