CDK cyberattack shuts down auto dealerships across the U.S. Here's what to know.
What cybersecurity measures does CDK Global advertise on its website, and how do they claim to protect their clients?
CDK Global advertises its cybersecurity capabilities on its website, specifically offering a three-tiered cybersecurity strategy designed to prevent, protect, and respond to cyberattacks1. This approach aims to help dealerships defend themselves against potential threats. The company's dealer management system (DMS) serves as a centralized hub for businesses to monitor operations, while their retail tools enable online and in-showroom transactions. Despite these advertised measures, CDK Global recently experienced a significant cyberattack that led to a nationwide system shutdown, impacting thousands of car dealerships4.
Can you explain the function of CDK's dealer management system (DMS) and how it supports dealership operations?
CDK's Dealer Management System (DMS) serves as a central hub for auto dealerships, enabling them to manage various operations through a single interface. It provides tools for managing payroll, inventory, and office operations. The DMS also offers cybersecurity capabilities to prevent, protect, and respond to cyberattacks. Dealerships can monitor their business activities, transact online and in showrooms, and maintain customer data through this system. The DMS aims to increase efficiency and productivity in dealership operations.
How many auto dealerships were affected by the CDK Global cyberattack, and what impact did it have on their operations?
The CDK Global cyberattack affected approximately 15,000 auto dealerships across the U.S., causing significant disruption to their operations. The attack forced CDK to temporarily shut down most of its systems, preventing dealerships from making sales, managing inventory, and conducting other essential business functions. Some dealerships resorted to using spreadsheets and sticky notes to continue selling small parts and making repairs, but larger transactions were halted. The incident highlights the growing threat of cyberattacks on auto dealerships and the need for robust cybersecurity measures.