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Last week, a severe cyberattack disrupted operations at CDK Global, a key provider of software to auto dealerships across the country. This incident forced the shutdown of computer systems at numerous dealerships, creating chaos and significant business interruptions.
On Wednesday, CDK Global experienced back-to-back cyberattacks, which led to a company-wide system shutdown. According to Bloomberg, the hackers are demanding tens of millions of dollars in ransom. CDK has started restoring its systems, but the process is expected to take several days.
Dealerships like AutoNation and Lithia Motors are feeling the impact. With their systems offline, many have resorted to manual, paper-based methods to keep business running. This not only slows down operations but also risks significant revenue losses.
A spokesperson for CDK Global told USA TODAY that the initial cyberattack was reported on Wednesday, prompting an immediate shutdown of most systems "out of an abundance of caution." Although some systems were briefly restored, a subsequent attack later that evening led to another complete shutdown.
CDK Global, which serves over 15,000 retail locations nationwide, is known for its comprehensive cloud-based software solutions. These solutions help dealerships manage vehicle acquisitions, sales, financing, insurance, repairs, and maintenance. The company's website highlights a “three-tiered cybersecurity strategy to prevent, protect, and respond to cyberattacks.” Despite these measures, the recent incident underscores the vulnerability of even the most robust systems.
As CDK Global works tirelessly to bring their systems back online, this incident serves as a stark reminder of the critical importance of cybersecurity. For businesses relying on digital infrastructure, investing in advanced cybersecurity solutions and strategies is not just advisable but essential.
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