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CDK Global Cyber Attack

Thousands Of Car Dealerships Affected By CDK GLOBAL CYBER ATTACK!

Wednesday, June 26, 2024

Searching For Ways To Do Business As Usual!

Car Buyer USA - CDK Global

It’s TOTAL CHAOS! A substantial cyberattack on CDK Global, a pivotal software provider for car dealerships, has resulted in extensive operational disruptions across North America. CDK’s platform manages critical dealership functions such as sales, inventory, and customer relationship management for over 15,000 dealerships. On June 19, 2024, CDK had to shut down its IT systems, phones, and applications to prevent the malware from spreading, significantly hindering dealerships' ability to function normally.

The attack appears to be a ransomware incident, although CDK has not officially confirmed this. Ransomware attacks typically involve encrypting a company's data and demanding a ransom for its release. CDK's immediate response involved taking its data centers offline multiple times to contain the attack. This led to widespread service outages, forcing many dealerships to revert to manual processes such as using pen and paper for transactions. This slowdown is particularly impactful during the busy car-buying season, causing delays and frustrations for both dealerships and customers.

In the wake of the attack, CDK has been collaborating with cybersecurity experts to assess the damage and work on restoring services. However, the timeline for full recovery remains uncertain, with many dealerships continuing to face significant operational challenges, looking at doing business “The Old Fashion Way” of pen and paper! The incident underscores the critical importance of robust cybersecurity measures for companies that provide essential software services, as the automotive industry increasingly relies on digital tools for its operations.

This situation highlights the vulnerability of interconnected systems and the far-reaching consequences of cyberattacks. The attack on CDK has not only disrupted daily operations but also exposed the potential risks associated with relying on a single provider for critical business functions. As CDK works to recover from this attack, it is likely that the automotive sector will place a greater emphasis on enhancing cybersecurity defenses to prevent similar disruptions in the future. This incident serves as a stark reminder of the necessity for comprehensive cybersecurity strategies to safeguard against increasingly sophisticated cyber threats.

Affected dealerships such as Carvana and AutoNation and several thousands of other companies, have stated their businesses have been disrupted as they search for alternative processes of doing business until services are restored. Car Buyer USA does not use CDK's services. This means that our operations have remained unaffected by the cyberattack. We are fully operational, with cash on hand, and are open for business. Our readiness to buy cars without the dependency on CDK's platform ensures that we can provide a seamless and efficient service to our customers. While other dealerships may be facing significant delays and operational hurdles, Car Buyer USA's independence from CDK allows us to continue offering quick and reliable car buying services. This distinction highlights the advantage of not being tied to a single software provider and the importance of operational resilience in the face of cyber threats.

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