Cyberattacks Disrupt North American Car Dealerships

Car dealerships across North America are grappling with significant disruptions following a series of cyberattacks on CDK Global, a major software supplier. This week’s attacks on Wednesday, June 19, 2024, have caused a multi-day outage, impacting thousands of auto dealers in the U.S. and Canada.

The impact of the outage has been felt across the automotive industry. Major auto companies like Stellantis, Ford, and BMW confirmed that some of their dealerships were affected. To cope with the situation, many dealerships have reverted to manual processes, such as writing up vehicle orders by hand. While this workaround allows sales operations to continue, it has introduced delays and inconveniences for both dealers and customers.

CDK Global, headquartered in Hoffman Estates, Illinois, provides essential software technology for over 15,000 retail locations. Their systems support a variety of dealership operations, including vehicle sales, financing, insurance, and repairs. The cyberattacks have forced CDK to shut down its systems as a precaution, leading to widespread operational disruptions.

Additionally, CDK has warned of “bad actors” posing as company representatives in phishing attempts to gain system access. They have urged caution among customers and employees to prevent further security breaches.

The initial cyberattack on Wednesday prompted CDK to undertake extensive testing and consult third-party experts. Despite efforts to restore core systems, a second cyber incident occurred later that evening, prolonging the outage. As of Friday morning, CDK’s systems remained offline, with no clear timeline for resolution. A recorded message on their customer hotline indicated that dealer systems would likely remain unavailable for several days, and customer care support channels were also down.

The cyberattacks have also raised concerns about customer privacy and data security. With limited information available about the nature and scope of the attacks, dealerships are actively seeking updates from CDK to understand any potential data breaches. Mike Stanton, president and CEO of the National Automobile Dealers Association, emphasized the commitment of dealers to protect customer information and respond appropriately to the incident.