CDK Cyberattack: Ransomware Disrupts Car Dealerships Nationwide
The recent CDK cyberattack has thrown a wrench into the operations of car dealerships across the United States.
The attack, now confirmed as a ransomware event by CDK itself, has left dealerships scrambling to find alternative methods to conduct business.
CDK Confirms Ransomware Attack, Announces Restoration Efforts
In a memo sent to clients on Saturday, CDK acknowledged for the first time that the attack involved a ransom demand. The company stated they are working on restoring their systems and expect to have major applications back online "within several days."
Cyberattack disrupts car dealerships nationwide https://t.co/gcmEKMGuYB
— Atlanta News First (@ATLNewsFirst) June 24, 2024
Source: Twitter/Atlanta News
CDK also warned dealerships to be cautious of phishing scams attempting to exploit the situation. The company is currently offering alternative methods for dealerships to keep their businesses running while the main systems remain down.
BlackSuit Group Suspected to be Behind the CDK Cyberattack
According to cybersecurity experts, the CDK cyberattack may be linked to the BlackSuit ransomware group.
Reports suggest the hackers are demanding tens of millions of dollars and that CDK might be considering paying the ransom.
Car Dealerships Impacted, Some Resorting to Manual Methods
The CDK cyberattack has severely impacted car dealerships. Some dealerships have been forced to completely halt operations, while others have resorted to manual methods like pen and paper, and even "sticky notes" to record transactions.
Dealerships across the country are struggling to keep up with daily tasks like financing deals and recording sales due to the lack of access to CDK's crucial dealership management system (DMS).
Ransomware Attacks on the Rise: Banning Payments a Potential Solution?
This incident highlights the increasing prevalence of ransomware attacks. With over 2,200 entities targeted in 2023 alone, some experts believe banning ransom payments might be the only way to effectively combat these attacks.
The argument is that without the possibility of hefty payouts, cybercriminals would be forced to seek out less disruptive methods.
The CDK cyberattack serves as a stark reminder of the vulnerability of businesses to cyberattacks. As these attacks continue to rise, the debate surrounding ransom payments is likely to intensify.
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