Thousands of car dealerships’ operations crippled by cyberattack

ABC News
23 Jun 202401:26

Summary

TLDRThousands of car dealerships in the US and Canada faced severe disruptions after a cyberattack on major auto industry software provider CDK Global. The incident left dealers unable to process appointments for maintenance and repairs or complete sales transactions. Major auto companies like Ford, Stellantis, and GM confirmed the impact, with dealers resorting to manual processes. CDK Global is investigating the attack, which is reportedly demanding a ransom in the tens of millions of dollars to restore operations. The outage could last several days, causing delays and manual vehicle orders.

Takeaways

  • 🚗 A major cyber attack has affected thousands of car dealerships, causing significant operational disruptions.
  • 🔒 The software provider cdk Global was targeted by back-to-back cyber attacks, impacting its services.
  • 🇺🇸🇨🇦 Roughly 15,000 auto dealerships in the US and Canada were hit by the cyber attacks.
  • 🛠️ Dealers were unable to process appointments for maintenance and repairs, as well as complete sales transactions.
  • 🏢 Major auto companies like Ford, Stellantis, and GM confirmed that their dealers were affected by the outage.
  • 📋 Manual processes were implemented by many dealers to continue serving customers during the system shutdown.
  • 🚫 cdk Global shut down all systems as a precautionary measure and is currently investigating the incident.
  • 🤔 The identity of the cyber attackers has not been disclosed by cdk Global, but ransom demands have been reported.
  • 💰 Hackers are reportedly demanding tens of millions of dollars in ransom to restore operations.
  • ⏳ The duration of the outage is uncertain, with dealers being told it could last several days.
  • 📝 Some vehicle orders are being taken manually, reverting to an old-fashioned way of doing business.

Q & A

  • What is the main issue discussed in the script?

    -The script discusses a cyber attack that has crippled operations at thousands of car dealerships, affecting their ability to process appointments and sales transactions.

  • Which company was targeted by the cyber attack?

    -CDK Global, a major auto industry software provider, was targeted by the cyber attack.

  • How many auto dealerships were affected by the cyber attack?

    -Approximately 15,000 auto dealerships in the US and Canada were affected.

  • What services were impacted by the cyber attack on CDK Global?

    -The cyber attack impacted services such as processing appointments for car maintenance and repairs, as well as completing sales transactions including signing buyers up for financing and insurance.

  • Which major auto companies have confirmed the impact of the outage on their dealers?

    -Ford, Stellantis, and GM have confirmed that the outage has impacted some of their dealers.

  • What measures did CDK Global take in response to the cyber attack?

    -CDK Global shut down all systems as a precaution and is currently investigating the incident.

  • Has CDK Global identified the perpetrators of the cyber attack?

    -The script does not mention that CDK Global has identified the perpetrators, but Bloomberg reports that the hackers are demanding ransom in the tens of millions of dollars.

  • How are the affected car dealers coping with the outage?

    -Many dealers are switching to manual processes to serve customers during the outage.

  • What is the current status of the investigation by CDK Global?

    -The script does not provide specific details on the status of the investigation, but it mentions that CDK Global has not responded to ABC's request for comment.

  • How long are the operations expected to be down according to the dealers?

    -Dealers are being told that operations could be down for several days.

  • What alternative methods are being used by dealers to handle vehicle orders during the outage?

    -Some vehicle orders are being handled the old-fashioned way, which implies writing them by hand.

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Related Tags
Cyber AttackAuto DealershipsCdk GlobalRansom DemandSoftware ProviderMaintenance DelaySales ImpactIndustry CrisisManual ProcessesOperational Outage