It's Time to Pay the Ransom

Summary

In this video, hosts Dan and Ransom discuss the impact of ransomware attacks on businesses, highlighting the case of CDK Global, which has caused billions in losses for the automotive industry. They also touch on the healthcare sector with the United Health ransomware incident. The video introduces Hillcrest Energy Technologies, a company with a patented inverter that promises zero power loss, potentially saving millions for EV cars and solar farms. The hosts emphasize the importance of protecting businesses from such attacks and the innovative solutions companies like Hillcrest offer in the face of increasing digital threats.

Takeaways

• 💻 Ransomware attacks are increasingly profitable, impacting various industries severely.
• 🚗 The automotive industry has suffered billions of dollars in losses due to a CDK software company ransomware attack, affecting sales and services.
• 📝 Car dealerships have had to revert to manual processes like writing contracts by hand due to the cyberattack.
• 🔒 Personal data from car dealerships has been compromised, putting customers at risk of identity theft and fraud.
• 💸 The cost of ransomware attacks is not just financial; it also includes the loss of sensitive customer information.
• 🏥 United Health experienced a ransomware attack, potentially exposing confidential health data of its customers.
• 💡 The necessity for businesses to prioritize cybersecurity to protect against the escalating threat of ransomware attacks is highlighted.
• 🏙️ Cities like Cleveland are struggling with the aftermath of ransomware attacks, affecting basic municipal services.
• 💰 The economic impact of ransomware extends to convenience stores like 7-Eleven, with some locations closing due to high operational costs.
• 🛒 There's a shift in consumer behavior, with people becoming more cautious about spending, affecting businesses like barbecue joints.
• 🌟 Hillcrest Energy Technologies is a company to watch, with a patented product aimed at reducing energy loss in EV cars and solar farms, offering significant savings.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the impact of ransomware attacks on various industries, particularly the automotive industry, and the challenges faced due to a recent attack on CDK Global.

What is

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Outlines

00:00

🚗 Impact of Ransomware on the Auto Industry

Dan and Ransom discuss the significant impact of ransomware attacks, particularly on the automotive industry. The software company CDK Global was hit, leading to billions of dollars in losses as car dealerships were unable to write service orders, sell cars, or handle financing. This forced a return to manual processes like writing contracts by hand. The attack also resulted in personal data theft, affecting customers who financed cars through dealerships, exposing sensitive information to Eastern European hackers. The conversation highlights the ongoing challenges of ransomware attacks, the need for businesses to protect themselves, and the potential for such attacks to cripple industries.

05:01

🏙️ Ransomware's Effect on Cities and Digital Crime

The script moves on to discuss the broader implications of ransomware, using the city of Cleveland as an example of a municipality crippled by a ransom attack. The city's inability to collect money for essential services like water bills or issue permits is highlighted. The conversation then shifts to Sweden's transition from a cash-based society to a digital one, which has seen a rise in digital theft. The script also touches on the rising costs of everyday items and services, such as at convenience stores and restaurants, and the need for consumers to be vigilant about pricing and avoid being taken advantage of by suggestive selling tactics.

10:03

🌿 Hillcrest Energy Technologies: A Breakthrough in Energy Efficiency

The script introduces Hillcrest Energy Technologies, a company with a patented product aimed at reducing energy loss in inverters, which are crucial for converting AC to DC electricity and vice versa. The company's innovative inverter technology promises zero power loss during conversion, which could save significant amounts of money for electric vehicle (EV) owners and solar farm operators. Hillcrest has invested over $20 million in developing this technology and is now seeking strategic partnerships for growth. The potential market value and the uniqueness of their patented technology make Hillcrest an exciting company to watch, especially with the growing focus on green energy and electric vehicles.

15:05

🛠️ Challenges for Car Dealerships and Manufacturers

The final paragraph addresses the ongoing challenges faced by car dealerships and manufacturers due to the CDK ransomware attack. The script mentions the potential for further layoffs at Stellantis, a major car company, and the broader impact on Detroit and the automotive industry. It emphasizes the long-term effects of such cyber attacks, suggesting that recovery will not be swift and that the incident could have lasting repercussions for car sales and the industry's ability to operate efficiently.

Keywords

💡Ransomware attacks

Ransomware attacks refer to a type of malicious software that encrypts a victim's data and demands payment to restore access. In the video, it is mentioned that these attacks are increasingly profitable, with the automotive industry being severely impacted due to the CDK software company being targeted, leading to billions of dollars in losses and a return to manual processes like writing contracts by hand.

💡CDK Global

CDK Global is a software company that provides technology and solutions to the automotive retail industry. The script discusses how a ransomware attack on CDK Global has crippled the automotive industry's ability to perform essential functions like writing service orders, selling cars, and financing, illustrating the significant disruption such attacks can cause to business operations.

💡Data breach

A data breach occurs when unauthorized individuals gain access to sensitive information. The video script highlights the consequences of the CDK ransomware attack, where personal data from car dealerships was stolen, potentially allowing hackers to misuse this information for nefarious purposes, such as identity theft or fraudulent activities.

💡Eastern European hackers

The term 'Eastern European hackers' is used in the script to describe the perpetrators of the CDK ransomware attack. It underscores the geographical origin of some cybercriminals and the global nature of cyber threats, which can originate from and impact any region or industry worldwide.

💡United Health

United Health is a health insurance company mentioned in the script as having experienced a ransomware attack earlier in the year. The attack resulted in the exposure of sensitive health data, highlighting the vulnerability of personal information in the digital age and the potential for privacy breaches in the healthcare sector.

💡Hillcrest Energy Technologies

Hillcrest Energy Technologies is a company highlighted as a sponsor in the video script. They have developed a patented product aimed at reducing energy loss in inverters, which are crucial for electric vehicles and solar energy systems. The script emphasizes the innovative aspect of their technology and its potential impact on saving costs in the automotive and renewable energy sectors.

💡Inverter

An inverter is a device that converts direct current (DC) electricity to alternating current (AC) and vice versa. In the context of the video, Hillcrest Energy Technologies has developed an inverter with zero power loss, which is a significant technological advancement as it could lead to substantial energy savings in electric vehicles and solar farms.

💡Electric vehicles (EVs)

Electric vehicles, or EVs, are vehicles powered by electric motors rather than internal combustion engines. The script discusses how Hillcrest Energy Technologies' inverter could save an average of $2,200 per EV by reducing energy loss, underscoring the potential economic benefits of such technology for the automotive industry.

💡Solar farms

Solar farms are large arrays of solar panels used to generate electricity from sunlight. The video script mentions that the average solar farm could save over $10 million using Hillcrest Energy Technologies' inverter, emphasizing the potential of the technology to significantly reduce energy loss and increase efficiency in renewable energy production.

💡7-Eleven

7-Eleven is a global convenience store chain mentioned in the script as facing challenges due to high labor costs and changing consumer behavior. The script describes how these factors have led to the closure of 272 7-Eleven stores in the United States, illustrating the impact of economic pressures on brick-and-mortar retail businesses.

💡Suggestive selling

Suggestive selling is a sales technique where salespeople recommend additional items or upgrades to customers to increase the total sale. The script recounts an anecdote about a waitress at a restaurant using this technique to add $10 to a drink order, highlighting how consumers may be unaware of the tactics used to increase their spending.

Highlights

Ransomware attacks are increasingly profitable, impacting various industries including automotive.

CDK Global, a software company, was hit by a ransomware attack causing billions in losses for the automotive industry.

The automotive industry has resorted to manual processes like writing contracts by hand due to the cyberattack.

Personal data from car dealerships has been compromised, including sensitive customer information.

Hillcrest Energy Technologies is a sponsor with a focus on green technology and energy loss solutions.

Hillcrest has developed an inverter with zero power loss, addressing a significant issue in solar energy and EV cars.

The patented technology by Hillcrest could save an average of $2,200 per EV and over $10 million for solar farms.

Hillcrest's inverter could not be duplicated due to its patented nature, providing a unique advantage.

The company is in talks with car manufacturers and has a low market value, indicating potential for growth.

The city of Cleveland is facing challenges due to a ransomware attack, affecting city operations.

Ransomware attackers are unrelenting, causing long-term disruptions and potential data leaks.

Sweden's shift from a cash society to a cashless one has led to an increase in digital theft.

7-Eleven stores are closing in the United States due to high labor costs and decreased consumer spending.

Inflation and high prices are affecting consumer behavior, with people becoming more cautious with spending.

Suggestive selling in restaurants can lead to unexpected costs, highlighting the need for vigilance with pricing.

Stellantis faces layoffs and challenges, reflecting broader issues in the automotive industry.

The CDK ransomware issue exacerbates existing problems for car dealers and manufacturers.

Transcripts

hey it's Dan welcome back this is I

allegedly and uh Ransom it's big

business right now and uh wow please

like subscribe comment on the video and

today we have a sponsor Hillcrest Energy

Technologies uh let's get right into it

you know we talked about this a little

bit last week because of the Auto

industry being shut down but these

ransomware attacks that are happening

are are getting to be more and more

profitable right now now here's the

thing cdk the software company this has

crippled the automotive industry it is

anticipated that there's been billions

of dollars lost right now billions of

dollars lost right now because they

cannot write service orders they cannot

sell cars they can't do financing and

what they've had to do is the car

industry has had to go out and write

contracts by hand lately now guys I

remember when you know I would buy cars

cuz I've got a few years on most of you

and people would you know they would

type up the sales orders they would type

up the financing orders that's what

they're having to do right now and you

would have thought that these guys are

using you know tablets and and uh you

know a chisel to to do this they have

such a problem with it but what's

happening is that cdk says enough is

enough because what they did was they

got hit with an attack and then some you

know executive start negotiating with

them and got Lippy because hey he's a

big bad car guy he's going to tell you

how it is and they said oh really and

then they just put the the hammer to the

floor now if you've bought a car from a

dealership in the last few years and you

had one of these dealerships your data

has been stolen and I have had so many

people reach out to me and say Dan this

is horrible because our personal

information did you finance it through

the dealership guys they got your Social

they got your home address they got your

phone number they got your workplace

they got everything that they would need

that a bad guy would need to go out and

to finance um a new lifestyle in your

name so you can sit there and say it's

no big deal this is huge Guys these

Eastern European hackers that have done

this have just done such a huge number

when it came to the cdk you know hacking

and again A one-two Punch when I talked

about it initially well it looks like

you know things are coming back online

and then they're not they're going to

have to pay tens of millions of dollars

and they're trying to put the money

together right now to pay these people

off so you know what do what how do you

expense uh you know Ransom attack

seriously and it gets sent this is the

thing that I don't understand you have

to send it to them via wire transfer oh

no we want Bitcoin okay well whatever

however they're going to get paid it's

got to be traceable in some way now

United Health United Health had a uh

Ransom attack earlier this year and the

problem with it was

initially they wanted $50 million for

this now they went back and forth with

them but all your health data if you are

a customer of United Health your

personal information if you've had lab

work done there they know what lab test

you had if you had a pregnancy test and

you want to keep it quiet if you had a

uh you know a sexually transmitted

disease you wanted to keep it quiet ah

not not not quiet anymore a third person

has that how do you feel about that okay

hippaa forget hippaa California is so

big on that here as far as making sure

that you don't talk about stuff like

that you don't you know patient privacy

it's ridiculous these companies have

jeopardized you and I like never before

but United Health they ended up paying

the bad guys it looks like the same

group $22 million so again Ransom

attacks are huge big business big money

none of us can afford this and it will

shut your business down but who when do

you sit there and when do you start to

protect yourself when you have a

database of

clientele seriously what you know what's

going to be the thing that's going to

make people go yeah we should work on

this because it's still it's happening

all the time right now so the cdk

problem

you know I feel for the auto dealers

because you know they've had a difficult

time in 2024 you could lie to yourself

you can sit there and say oh the economy

is booming it's not you get you know a

live fish on the hook and uh you want to

close that deal and then you can't oh my

God how how awful is that because the

problem with it is that let me tell you

something about the Auto

industry people get diverted their

attention gets diverted they you need to

get them while they're hot so to speak

and you need to close that deal now I'm

walking through traes and through the

mud right here

so absolutely

fascinating but they're going to pay who

knows what they're going to pay but

again when do you when do you sit there

and and protect us when do you sit there

and say okay we're not going to do this

and this is not going to be a problem

there have been so many cities the city

of Cleveland right now is still down

because of a ransom attack and again

defiant in totally cool people

involved in the city of Cleveland and uh

guess what the ransom attackers they

don't care they're going to shut them

down and they're going to keep them shut

down and start releasing personal data

and stuff like that but when does the

city get crippled when they can't

collect money for a water bill or they

can't take money for a building permit

or a business license or anything else

can't charge for their uh pay uh their

uh parking meters okay it's that stuff

guys guys so the

cdk uh fraud that's being perpetrated on

them and the the extortion payment it's

getting wild guys it's going to only get

bigger so let me know what you think

about that so

far audio audio

audio here's something to think about

because this is the opposite of what

they thought was going to happen

Sweden went from basically a cash

Society to a cash L society and crime

has gone rampant now it's not strong

armed robberies it's not shaking people

down when they purchase things it's the

fact that people are going into people's

digital accounts when they do

transactions and stealing from them and

the cronar is their currency and people

are just getting ripped off simplest

purchases and they're going after these

people because they're not used to this

and people are very trusting and you

don't want to be trusting right now

don't give anybody anything the

advantage to going to a flea market this

is what started this conversation was if

you go to a flea market or the swap

meate you know and you carry cash with

you that's it that's that's what you can

you can get robbed for the cash in your

pocket okay well the problem with these

people these digital thieves is that

they're they're sophisticated and

they're coming after people more and

more and more so it's awful guys

absolutely awful next thing 7-Eleven

7-Eleven the convenience stores you've

been there I was it's funny I was at a

7-Eleven today it's at a 7-Eleven two

days ago so there are right now 272

7-Eleven closing here in the United

States right now why is that people

aren't buying convenience stores or not

buying gas or not buying sodas and a

Diet Coke and the lottery tickets no

it's the labor cost and the prices are

too high and the per ticket transaction

is absolutely off so you know you'd walk

in there you'd see a bag of chips I'll

get the candy bar too I'll get this you

know what let me get a coffee and and an

extra soda not anymore guys people are

not spending the money like they did you

know 6 months

ago now Richard sent me a great photo

because I've had this experience to me

where Richard's son went to a barbecue

joint and said gosh dad the menu was

kind of confusing I sit down for lunch

at a barbecue place at 40 $7 later for

his lunch so look at that guys isn't

that nice tray you know plastic utensils

paper plate it's nuts guys it's

nuts it's funny barbecue joints have

really gotten out of control the price

to eat out is nuts right now and I'm

telling you guys you have to be vigilant

wherever you go you have to it's funny

Vigilant with pricing right now you have

to pay attention to everything and it it

makes you look like a cheap guy it does

but how much is this how much is that my

my favorite thing was I was with my son

at the restaurant that he works at and

he recommended this one waitress we want

her to work our table and she came over

and drinks were ordered by everybody and

hey do you guys want this oh you want a

bloody marriage do you want this on it

this on it and this on it yeah and he

said God that was brilliant do you

understand she just added $10 to that

drink by requesting that

and uh if you want that so the

suggestive selling that these people do

you know and again it was a celebration

so it wasn't like I was sitting there

going whoa whoa whoa how much is that

going to be didn't do that probably

should have but you have to look at the

stuff right now guys because it is just

getting worse and worse and worse and

Richard son sorry man that is just

that's awful to get that you know shock

when you get to the

register let's talk about our sponsor

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guys

soon I'm going to finish this video with

these last couple stories Ashish wrote

me that he was in his Honda dealership

and uh been waiting for his car to be

done and again three days nothing they

can do Dan just sitting there watching

and waiting and they can't diagnose

problems can't fix anything a real real

problem stellantis stellantis is going

to have more layoffs guys stellantis is

just done you know this this car company

is a shell of what it used to be and

they've had nothing but problems and now

you know the executives are writing

stories in the Auburn Hill location

and this is going to be bad for Detroit

yeah it's going to be bad for anybody

when you have massive layoffs but the

cdk problem does not help car dealers

and car manufacturers either CU they're

not going to buy anything right now this

can take months once they get the switch

turn back on it's not going to get

turned back on in a day and get fixed

it's going to be a problem for a very

long time so please don't forget to hit

the like button please don't forget to

subscribe to the channel email me all

your stories at hello I allegedly decom

onward and upward guys I'll see you real

soon

[Music]