CDK Global, a software-as-a-service provider, was hit by a cyberattackthat forced it to shut down its systems, simultaneously affecting many car dealerships.
CDK Global provides its customers with a SaaS platform that handles all aspects of operating an automotive (e.g., CRM, financing, payroll, support and service, inventory, and back office operations). It is used by more than 15,000 automotive dealerships in North America and has thousands of employees across the country.
To use CDK services, agencies configure an always-on VPN to the data SaaS provider's allowing their locally installed applications to access the platform.
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However, CDK Global suffered a cyberattack the night before yesterday and IT systems its, phones and applications. Of course, the operation of its data centers was also affected.
According to car dealerships that are customers of CDK Global, the company sent an email to notify them of the cyberattack and service, but did not provide many details. It said that systems were shut down to prevent the attack from spreading and that an investigation has been launched.
Embassy officials expressed concerns that threat actors could use the always-on VPN to gain access to their internal network.
CDK advised car dealerships to disconnect the VPN just in case.
The cyberattack on CDK Global has caused widespread disruption
The cyberattack and outage have caused disruption among car dealerships that use CDK Global's platform.
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Workers reported on Reddit that they were left with nothing to do or were forced to revert to paper and pencil. Some dealerships are sending employees home because of the incident.
Although there has been no official statement from CDK, it is rumored that the company suffered a ransomware that also affected backups .
Yesterday, CDK informed its customers that CDK Phones, DMS and Digital Retail have been restored. Unify and DMS connections are also available. However, they are continuing to conduct tests on all other applications before bringing them back online.
With the rise of technology and digitalization in the automotive industry, car dealerships rely heavily on software systems for day-to-day operations. As a result, both dealerships and software are becoming prime targets for cybercriminals seeking to disrupt business operations, steal sensitive information, or demand ransom payments.
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In order to combat these threats, it is vital for businesses to invest in robust cybersecurity solutions and regularly train their employees on best practices for online security. This includes implementing firewalls, multi-factor authentication, data encryption, and conducting regular backups of important data.
Additionally, organizations should have a incident response plan in place, which includes steps for containment, recovery, and stakeholder communication. Regular testing and updating of this plan is also important to ensure its effectiveness.
Source: www.bleepingcomputer.com
