CDK Globals Car Dealership Software STILL not fully operational after 2+ Weeks!

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CDK Global continues to grapple with the aftermath of a significant cyberattack (after 2+ weeks!). Thus, leaving many of the software services it provides to thousands of car dealerships across the U.S. still not fully operational.

As of Monday, CDK stated that it expects all dealers to regain access to the platform by July 4. This means that some businesses may remain impacted for several more days. “We are continuing our phased approach to the restoration process and are rapidly bringing dealers live on the Dealer Management System,” the company stated. “We anticipate all dealers’ connections will be live by late Wednesday, July 3 or early morning Thursday, July 4.”

The Ongoing Fallout

The ransomware attack has dragged into a third week, affecting the 15,000 car dealerships that rely on CDK’s sales, inventory management, and customer relations systems to operate. On Saturday, CDK reported progress in restoring systems for its clients. “We have successfully brought two small groups of dealers and one large publicly traded dealer group live on the Dealer Management System,” a CDK spokesperson said. “We are also actively working to bring live additional applications – including our Customer Relationship Management and Service solutions — and our Customer Care channels.”

In an automated recording for dealership clients, CDK also announced the resumption of customer service calls, now with extended hours. “We are happy to report that our customer care support channels are now live. As of today, you can call us for assistance,” the recording stated.

Impact on Dealerships

Car dealerships have been significantly affected by the CDK outage. According to J.D. Power, the attack is expected to reduce dealerships’ June sales by approximately 100,000 vehicles. That’s more than 7%, compared to the same period in 2023. Anderson Economic Group estimated that the financial losses for dealers due to the CDK outage reached a staggering $944 million over the first three weeks following the attack.

The disruption comes at a critical time for car buyers and sellers, slowing business during the traditionally busy summer selling season. “June is one of the most important selling months for the auto industry, and we were expecting sales to be fairly strong,” Tyson Jominy, vice president of data & analytics at J.D. Power said.

Lessons for All Businesses

The CDK Global incident underscores the urgent need for robust cybersecurity measures and a well-prepared recovery plan. Cyberattacks can strike at any time, and the repercussions can be severe, affecting not just immediate operations but also long-term financial stability and customer trust.

Proactive Cybersecurity Measures

To protect your business from similar disruptions, consider the following proactive cybersecurity measures:

  • Implement Multifactor Authentication (MFA): Add an extra layer of security beyond just passwords.
  • Regular Software Updates and Patch Management: Keep all systems up-to-date to protect against known vulnerabilities.
  • Employee Training and Awareness Programs: Educate staff on cybersecurity best practices and how to recognize phishing attempts.
  • Data Encryption: Encrypt sensitive data to protect it from unauthorized access.
  • Advanced Threat Detection Systems: Use intrusion detection and prevention systems to monitor network traffic for suspicious activity.
  • Incident Response Plan: Develop and regularly update a response plan to quickly and effectively manage any cybersecurity incidents.

Secure Your Business Now

Is your organization prepared to handle a cyberattack? If you’re not sure, or just want a second opinion, our cybersecurity experts offer a FREE Security Risk Assessment. This assessment will identify vulnerabilities in your network and provide actionable steps to fortify your defenses.

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