CDK Global cyberattack: Consequences and fallout for car dealerships in the US
While the cybercriminals attacked CDK Global, the damage is being felt far and wide by dealerships that use the company’s management system software.
Damage from the ransomware attacks by cybercriminals on CDK Global last week is still ongoing as the software provider works to restore customers’ systems. The management system software it supplies is used by over 15,000 dealerships across the country.
CDK Global, which is owned by private equity firm Brookfield Business Partners, said in an emailed statement to Reuters that it expects it will take “several days” to restore service. “We are continuing to actively engage with our customers and provide them with alternate ways to conduct business,” CDK added.
Consequences and fallout for car dealerships in the US of CDK Global cyberattack
So far, at least six companies have told the Securities and Exchange Commission that the CDK Global cyberattacks have had a negative or disruptive impact on their operations. Those customers that have been able to keep operating have been forced to go back to pen and paper to carry out record keeping.
CBT News reports that dealerships have seen a drop in online lead submissions and an increase in phone calls. It appears to those in the business that the cyberattacks have made customers wary of handing over private information online.
CDK Global will reportedly pay cyber ransom
On Saturday, the tech news site Bleeping Computer reported that the cyberattacks on CDK Global were carried out by BlackSuit. The established ransomware group is asking for tens of millions of dollars from the software provider to get its data back according to an unidentified source who spoke to Fortune.
That individual said that CDK is planning on making the payment to BlackSuit. Since May 2023, around the time the group emerged, it has claimed 76 victims and is believed to be connected to other major ransomware operations.
Most of those victims have been located in the United States, where the targets of such cyberattacks are more likely pay the ransom. BlackSuit has not mentioned the attack on its website yet according to CyberScoop.