CDK Global, a leading provider of automotive retail technology, recently suffered a cyberattack that left many of its customers wondering when they'll be back online. CDK Global's systems were compromised on February 23, 2023, and the company has been working to restore its services.
The attack affected multiple systems, including CDK's Dealer Management System (DMS), which is used by thousands of dealerships across the US and Canada. This system is critical to the day-to-day operations of these businesses.
CDK Global has not yet provided a specific timeline for when its systems will be fully restored. In a statement, the company said it is working to restore its services as quickly as possible, but it is unclear when this will happen.
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CDK Global Cyberattack
CDK Global, a major car dealership software company, suffered a devastating cyberattack on June 19, 2024, that severely disrupted operations for over 15,000 car dealerships across North America.
The attack forced CDK to take all systems offline "out of an abundance of caution", and dealerships had to revert to handwritten forms to manage vehicle sales, financing, and maintenance.
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The company's cloud-based software is integral to dealership operations, facilitating everything from vehicle acquisitions to repairs.
CDK Global's cloud-based software is used by more than 15,000 auto dealerships across North America to manage everything from vehicle acquisitions and sales to financing, insuring, repairs, and maintenance.
The cyberattacks, which occurred last week, led to the decision to take most systems offline as a precaution, leaving many dealerships scrambling to maintain business continuity without their usual digital tools.
CDK Global has cautioned its customers that the full restoration of services will take time, and it does not expect to have "all dealers live" until June 30.
The company is adopting a phased approach to restore its systems, ensuring gradual and secure reintegration, and has successfully reactivated its Dealer Management System for two small groups of dealers and one large publicly traded dealer group.
CDK Global's Customer Care channels have also been restored, and customers can call, chat, or submit eCases if they need assistance.
The financial impact of the shutdown is mounting, with the Michigan-based Anderson Economic Group estimating that the ongoing outages could cost directly affected dealers nearly $1 billion if the disruption continues until the July 4 holiday weekend.
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CDK Global remains focused on mitigating the impact on its clients and addressing the growing number of lawsuits arising from the cyberattacks.
The company is working to bring other critical applications back online, including CRM, One Eighty, and CDK Service.
The cyberattack is believed to have been a ransomware attack that compromised backups, and a second cyberattack struck, forcing another shutdown, worsening the situation, and increasing frustration among dealerships.
The recurrence of attacks has raised significant concerns about the effectiveness of CDK's initial response and the strength of their cybersecurity measures.
The hacker team behind the incident, BlackSuit, is believed to be a rebranding of the Royal ransomware operation, itself a successor to the notorious Conti cybercrime syndicate.
CDK Status
CDK Global is still working to get all impacted dealers back online, with a goal of having all dealers live by late Wednesday, July 3, or early morning Thursday, July 4.
The company has made significant progress in its cyberattack recovery efforts, bringing a second small group of dealer customers and a major public dealership group back online on June 27.
CDK's phased approach to restoration has ensured gradual and secure reintegration, with a focus on mitigating the impact on its clients and addressing the growing number of lawsuits arising from the cyberattacks.
Two small groups of dealerships and one large publicly traded dealer group have already been brought back online, with efforts underway to restore additional applications and customer support channels.
CDK's customer care channels have also been restored, allowing customers to call, chat, or submit eCases if they need assistance.
The company has cautioned its customers that the full restoration of services will take time, with an initial estimate of June 30 for all dealers to be live.
Frequently Asked Questions
How long did the CDK outage last?
The CDK Global outage lasted for two weeks, impacting dealerships' ability to operate. This significant disruption was caused by a system breach on June 19th, 2024.
Is CDK back to normal?
Yes, CDK Global has largely recovered from the cyber incident, with nearly 15,000 dealerships back online to its core management system. However, the full extent of the recovery and any remaining impacts are not yet clear.
Sources
- https://www.forbes.com/sites/jimhenry/2024/07/03/dealership-software-comes-back-online-after-cyberattack-at-cdk-global/
- https://www.cbtnews.com/cdk-global-progresses-cyberattack-recovery-with-key-dealers-back-online/
- https://www.crn.com/news/security/2024/cdk-says-restoration-nearly-complete-ahead-of-schedule
- https://www.usatoday.com/story/money/2024/07/03/cdk-global-cyberattack-timeline/74292877007/
- https://dataconomy.com/2024/07/01/is-cdk-still-down-cyber-attack-update/
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