If the software your organization used to close deals and pay employees unexpectedly went down and you had no idea when it would be fixed, what would you do? Could you continue doing business? How much money would you lose? Unfortunately, this happened to over 15,000 North American car dealerships when two cyberattacks targeted the popular industry software provider, CDK Global.
What Happened?
In June 2024, car dealerships across the United States and Canada found themselves in a precarious situation. Their primary software systems for sales, financing, and payroll suddenly went offline due to a cyberattack on CDK Global, leaving thousands of businesses scrambling to maintain operations, with many reverting to manual, paper-based processes.
The attack unfolded in two stages:
The Initial Breach. On the evening of June 18th, CDK Global detected an attack and immediately took their systems offline to investigate.
A Secondary Incident. After briefly restoring services, a second attack forced the company to shut down their systems again. It is thought that the system was brought back online prematurely, before all compromised areas were discovered, resulting in this second attack.
Cybersecurity experts estimated it could take weeks for full functionality to be restored, highlighting the potentially long-lasting impact of such attacks.
The Ripple Effect on Businesses
Yes, some businesses were able to revert to old-fashioned pen-and-paper processes. Those who could not serve as a very real demonstration of the far-reaching consequences of cyberattacks on third-party service providers. When critical software goes down, businesses are faced with numerous challenges, such as:
- Interrupted sales processes.
- Delayed financial transactions.
- Payroll disruptions.
- Potential data breaches.
- Loss of customer trust.
For many dealerships, the CDK Global outage meant a complete halt to normal operations, potentially resulting in significant financial losses.
Lessons for All Businesses
While the CDK Global attack directly impacted car dealerships, it offers valuable lessons for businesses across all industries:
Diversify your digital tools: Avoid over-reliance on a single software provider.
Maintain offline backup systems: Have alternative methods to continue core business functions.
Regularly update and test your business continuity plan: Ensure you're prepared for various scenarios.
Invest in robust cybersecurity measures: Protect your own systems from potential attacks.
Taking Action: Don’t Wait Until It’s Too Late!
In light of these events, it is crucial for business owners to assess their own cybersecurity readiness. Here are some steps you can take:
- Conduct a comprehensive security risk assessment.
- Develop and regularly test a business continuity plan.
- Train employees on cybersecurity best practices.
- Invest in up-to-date security software and hardware.
- Work with cybersecurity experts to identify and address vulnerabilities.
The CDK Global incident serves as a wake-up call for businesses of all sizes. Cyber threats are evolving rapidly, and no organization is immune. By working to enhance your cybersecurity posture, you can minimize the risk of becoming the next victim of a cyberattack.
Take the first step towards stronger cybersecurity today. Contact our team to schedule your free Cyber Security Risk Assessment. We'll analyze and identify vulnerabilities in your network and help you develop a tailored plan to protect your business from cyber threats.
Call us at 281-646-1200 or click here to book your free assessment now. Don't let a cyberattack catch you off guard—secure your business's future today.
