CDK Global, a leading provider of automotive dealer management software, has been paralyzed by a severe cyberattack for the third straight day, crippling operations for approximately 15,000 auto dealerships across the U.S. This outage is severely impacting auto dealerships that rely on CDK Global’s systems to manage their sales and services operations.

The disruption has forced dealership employees to revert to using pen and paper for transactions, significantly slowing down business activities. “We are actively investigating a cyber incident,” a CDK spokesperson told CBS News. “Out of an abundance of caution and concern for our customers, we have shut down most of our systems and are working diligently to get everything up and running as quickly as possible.”

Multiple Cyberattacks on CDK Global

Initially, some services were restored on Wednesday. However, CDK Global reported another cyberattack on Wednesday evening, forcing them to take most systems offline again. 

“Late in the evening of June 19, we experienced an additional cyber incident and proactively shut down most of our systems,” the spokesperson added. “In partnership with third-party experts, we are assessing the impact and providing regular updates to our customers. We remain vigilant in our efforts to reinstate our services and get our dealers back to business as usual as quickly as possible.”

Calls to CDK Global’s customer support hotline have been met with busy signals, and an automated message indicated that the outage could continue for several days. PC Mag reported that the message warned callers of potential phishing attacks by bad actors posing as CDK support staff.

Impact on Dealership Operations

The outage has brought most dealership transactions to a halt. Employees on Reddit shared how they are resorting to spreadsheets and sticky notes to conduct smaller transactions and repairs, but larger sales have been stalled. One employee asked on Reddit, “How many of you are standing around because your whole shop runs on CDK?”

Mike Stanton, CEO of the National Automobile Dealers Association, emphasized the industry’s commitment to data protection. “Dealers are very committed to protecting their customer information and are actively seeking information from CDK Global to determine the nature and scope of the cyber incident so they can respond appropriately,” Stanton said.

Rising Cybersecurity Threats

This cyberattack on CDK Global is part of a larger trend of increasing cyber threats. According to a recent study by data firm SOAX, there were over 3,200 data breaches in 2023, a 78% increase from the previous year, impacting more than 65 million individuals.

CDK Global’s dealer management software (DMS) is essential for car vendors to handle payroll, inventory, customer relations, and office operations. The technology also facilitates vehicle financing and insurance processes. Despite promoting robust cybersecurity solutions on its website, CDK Global has been vulnerable to these recent cyber incidents.

 Corporate Background

Brookfield Business Partners, a Toronto-based private equity firm, acquired CDK Global in 2022 in a deal valued at over $8 billion. The ongoing cyberattacks raise questions about the cybersecurity measures in place and the resilience of dealer management software systems.

As CDK Global works to restore its services, the automotive industry closely watches for updates, highlighting the critical need for robust cybersecurity measures to protect vital business operations and customer data.

 Conclusion

The CDK Global cyberattack highlights the vulnerabilities and critical dependencies in modern automotive operations. Dealerships, now more than ever, need reliable cybersecurity strategies to safeguard their operations and customer information. As the situation unfolds, both CDK Global and the dealerships it serves strive to mitigate the impact and resume normal business activities. By focusing on securing their digital infrastructure, auto dealerships can better protect against the rising tide of cyber threats that continue to challenge businesses across various sectors.