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Recently, a significant cyberattack caused operational disruptions for CDK Global, a well-known supplier of software-as-a-service for auto dealerships. In an effort to prevent the breach from spreading, the attack compelled CDK Global to stop using its phones, computers, and apps. As a result of this precaution, many auto dealerships in North America were unable to run their regular operations efficiently.
With a platform that handles customer relationship management, financing, payroll, support services, inventory, and back-office operations for more than 15,000 auto dealerships, CDK Global is a crucial player in the automotive sector. The services it provides are essential to thousands of workers and dealerships; therefore, the impact of the cyberattack is significant and far-reaching.
Car dealerships must have an active VPN connection to CDK’s data centres in order to use its services. Nevertheless, throughout the attack, this connection turned into a weakness. Due to the late-night hack, CDK had to unplug its two data centres at roughly two in the morning. Dealerships were then instructed to turn off their constantly connected VPNs in order to guard against potential threat actor misuse.
The cyberattack on CDK Global caused significant operational difficulties.
Dealerships discovered that they were unable to order and track auto parts, close new sales, or provide financing. Many resorted to manual procedures, managing activities using paper and pencil in the absence of digital instruments. Some dealerships even sent workers home because they were unable to finish the job.
Unverified sources indicate that the attack may have been caused by ransomware. Cybercriminals usually carry out such assaults by breaking into networks, stealing data, and encrypting computers in order to extort a ransom. If this rumour is accurate, the disruption may last for a few days or possibly weeks while the assailants and the authorities negotiate. The potential for data theft prompts worries about double-extortion schemes, in which thieves demand money in exchange for the ability to decrypt files and stop stolen material from being made public.
While actively investigating the incident, CDK Global is trying to get everything back to normal. CDK has announced that phone, DMS, and Digital Retail services have been restored in a recent update; however, additional applications are still undergoing testing prior to their reactivation. The entire scope and duration of the disturbance are yet unknown despite these attempts.
This cyberattack highlights the weaknesses in critical service providers and the extensive effects that these breaches can have on dependent companies and their operations.
