CDK Global, a major software provider for auto dealerships, has been hit by a cyberattack, disrupting operations at approximately 15,000 dealerships in the U.S. and Canada. The attack occurred in two waves. The initial attack began on Wednesday morning, causing operational disruptions and forcing the company to shut down its systems, which dealerships rely on for routine business. By Wednesday afternoon, CDK announced that most of its critical computer systems were back online.

However, the situation took an unfortunate turn. Thursday morning, the company informed dealerships of an additional “cyber incident” overnight, leading to a decision to keep most systems shut down through the remainder of Thursday as a precautionary measure.

Dealerships rely on CDK’s software for essential functions such as managing customer records, scheduling services, and processing sales. The shutdown has severely hindered access to vital information, affecting their ability to serve customers and finalize transactions. CDK is actively working to restore its systems, while dealerships are adapting to the ongoing disruptions.

Why it matters: The double attacks on CDK have brought dealership operations to a screeching halt. Dealerships’ reliance on a centralized digital system is a critical vulnerability; any disruption to this core component results in substantial operational setbacks, business losses, and diminished customer trust. As vehicles and dealerships increasingly rely on digital technology, the risk of cyberattacks rises, showcasing an urgent need for thorough cybersecurity measures to protect sensitive data and ensure business continuity amidst numerous threats.

• Incident Details: CDK Global experienced two cyberattacks within 24 hours, first on Wednesday morning and again late Wednesday evening, leading to a shutdown of most of its systems. The shutdown affected approximately 15,000 auto dealerships in North America, making it difficult to access customer records, process sales, and schedule services.

• Mitigation and Adaptation: CDK Global is collaborating with third-party experts to investigate the incidents and restore systems, focusing on securing sensitive data and resuming normal operations swiftly. Some dealerships have resorted to manual methods to continue operations, such as using spreadsheets and sticky notes, although larger transactions remain problematic.

• Industry Context: The auto industry has faced similar cyber threats recently. For instance, the Findlay Automotive Group cyberattack earlier this month which compromised their IT systems, and impacted operations across multiple states, highlighting the sector’s vulnerability to cyberattacks.

Go Deeper -> Car Dealerships Hit with Second Day of Massive Computer System Outage – CNN

A Major Car Dealership System Got Hit by Cyberattacks – Quartz