CDK cyber attack 2024 cripples car dealerships across NA

The car dealership software provider suffered a devastating CDK Cyber Attack 2024, forcing the company to shut down its systems and leaving clients unable to operate normally. The incident sent shockwaves through the automotive industry, highlighting the vulnerability of critical infrastructure to cyber threats.

How did CDK Cyber Attack 2024 happen?

The attack, which occurred on June 19, 2024, impacted CDK’s SaaS platform, used by over 15,000 car dealerships across North America to manage various aspects of their operations, including CRM, financing, payroll, support and service, inventory, and back-office functions. The attack’s precise nature remains unclear, with rumors suggesting a ransomware attack that compromised backups.

CDK Cyber Attack 2024 has been confirmed by the company to BleepingComputer together with the following words:

“We are actively investigating a cyber incident. 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.”

– CDK.

The attack’s impact was swift and severe. CDK shut down its IT systems, phones, and applications to prevent further spread, leaving dealerships scrambling to find alternative solutions. Many employees were left idle, forced to resort to manual processes or sent home. The disruption reverberated throughout the industry, causing significant delays in car sales, parts orders, and financing.

What was CDK ransom?

While CDK has not confirmed the attack was ransomware, the term “CDK ransom” has emerged as a way to refer to the potential ransom demand made by the attackers. If the rumors are true, the attackers likely encrypted CDK’s systems and data, demanding payment in exchange for decryption keys and a promise not to publish stolen data. Such “double-extortion” schemes have become increasingly common in ransomware attacks, putting immense pressure on victims to pay the ransom.

The CDK Cyber Attack 2024 targeted CDK’s SaaS platform, crucial for managing CRM, financing, payroll, support and service, inventory, and back-office functions (Image credit)

The potential CDK ransom highlights the high stakes involved in cyber attacks on critical infrastructure. The disruption caused by the attack has already cost the automotive industry millions of dollars, and the financial impact could worsen if the ransom is paid. Moreover, the incident raises concerns about the vulnerability of other industries that rely on similar software-as-a-service platforms.

When was CDK hacked?

The CDK cyber attack occurred in the early hours of June 19, 2024. CDK detected the attack around 2 AM, just like the Tile data breach, and took immediate action to contain it. The company shut down its systems and began investigating the incident, working with external experts to assess the damage and restore operations.

The aftermath of the CDK cyber attack 2024

CDK has been working diligently to restore its systems and get dealerships back online. The company has released several updates, stating that it has restored some services, including CDK Phones, DMS, and Digital Retail. However, other applications remain offline as CDK continues to conduct tests before bringing them back online.

The CDK cyber attack of 2024 will undoubtedly leave a lasting impact on the automotive industry. It has exposed vulnerabilities in critical infrastructure and underscored the need for heightened cybersecurity awareness. As CDK continues its recovery efforts, the industry will be watching closely, eager to learn from this incident and take steps to prevent similar attacks in the future.

While the full extent of the damage caused by the CDK cyber attack is yet to be determined, one thing is clear: the incident has served as a stark reminder of the ever-present threat of cyber attacks and the importance of robust cybersecurity measures. The road to recovery will be long and challenging, but the lessons learned from this incident will undoubtedly shape the future of cybersecurity in the automotive industry and beyond.

Featured image credit: CDK Global