News
Car dealerships’ software shut down after cyber attack
A cyber assault on software program supplier CDK World upended operations at automobile dealerships throughout the U.S. on Wednesday.
CDK spokesperson Lisa Finney mentioned the corporate shut down most of its programs “out of an abundance of warning” for purchasers. By Wednesday afternoon, the corporate had restored its core doc administration system and digital retailing options.
“We’re persevering with to conduct in depth checks on all different functions, and we are going to present updates as we deliver these functions again on-line,” Finney mentioned in an emailed assertion.
Finney didn’t reply to questions on what number of dealerships had been impacted, however CDK’s web site says the corporate works with greater than 15,000 retail areas throughout North America.
What does CDK World do?
One of many main suppliers of cloud-based software program to dealerships within the nation, CDK’s software program helps dealerships handle car acquisitions, gross sales, financing, insuring, repairs and upkeep. The corporate’s web site says it gives a “three-tiered cybersecurity technique to forestall, defend and reply to cyberattacks.”
Why are automobile dealerships focused by cyber assaults?
The incident follows a cyber assault towards Findlay Automotive Group final week. The automotive group – which operates in 5 states – mentioned the assault restricted its skill to conduct gross sales and repair, in accordance with reporting from the Las Vegas Evaluation-Journal.
A 2023 report from CDK notes that cybercriminals are a rising menace to focus on automobile dealerships, with 17% of 175 surveyed sellers experiencing a cyber assault or incident inside the previous yr, up from 15% the yr prior. Of these sellers, 46% mentioned the cyberattack had a adverse monetary or operational affect.
Dealerships have been a lovely goal due to the huge quantities of delicate buyer information they maintain. From credit score functions to buyer monetary info, dealerships maintain a “treasure of knowledge” to hackers, in accordance with a 2023 article from insurance coverage firm Zurich North America.
“As well as, dealership programs are sometimes interconnected to exterior interfaces and portals, equivalent to exterior service suppliers,” the report reads. And plenty of dealerships “lack fundamental cyber safety protections.”
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