‘I can’t get paid.’ Cyberattack affecting car dealerships brings chaos for sellers, buyers | CNN Business (2024)

FAQs

‘I can’t get paid.’ Cyberattack affecting car dealerships brings chaos for sellers, buyers | CNN Business? ›

'I can't get paid. ' Cyberattack affecting car dealerships brings chaos for sellers, buyers and workers. As the ongoing systems outage at software provider CDK Global stretches into its second week, car dealerships are racking up millions of dollars in losses, according to a new estimate.

The ransomware attack that hit CDK in mid-June disrupted thousands of auto dealerships that use the company's software to manage everything from scheduling to sales and orders. CDK referred to it as a “cyber incident” in statements to reporters.

CDK reportedly paid $25 million to end US car dealership cyberattack: 3 things you should know. A notorious extortion group caused headaches for car sales and car service across the nation. Here's what happened. A massive cyberattack caused chaos for US car dealerships, and both dealers and customers felt the effects.

The CDK Global cyberattack has been attributed to the BlackSuit ransomware gang. BlackSuit is a relatively new ransomware group that first emerged in April 2023. The group has links to the older more established Royal ransomware gang. There is some evidence that BlackSuit is also related to the Conti ransomware group.

CDK Global says 'substantially all' dealers are back online after a crippling hack.

The cyberattack, which occurred on June 19, disrupted operations for several major publicly traded dealership groups. Five of the six largest franchised dealership groups—Asbury, AutoNation, Group 1, Lithia, and Sonic—rely on CDK as their primary dealership management system (DMS).

Report Fraud and File Complaints With Federal Agencies

The Federal Trade Commission (FTC) enforces consumer laws that prevent deceptive business practices. You can report fraud, scams, and unfair business directly to the FTC. You can also file a complaint with the Better Business Bureau (BBB).

If you want to beat car dealerships at their own game, you need to first understand the true market value of what you're buying and trading in. You should also get quotes via phone or email before you physically go into the dealership, and then skip all the extras they'll push you to buy.

How many dealerships use CDK? ›

What does CDK Global do? CDK Global provides data and technology to different automotive dealerships. Its systems are used by roughly 15,000 car dealerships across the United States and Canada.

BlackSuit, a group of cybercriminals, was identified as the group responsible for the ransomware attack. CDK Global informed its clients on June 24, 2024, that it would shut down temporarily as it recovered from the attack.

After CDK was first breached, it restored its systems, only to be hacked a second time. In their suit, the dealers compare CDK's decision to restore systems without resolving underlying security issues to "a doctor stitching up a wound without first removing all the debris."

On April 7, 2022, CDK Global agreed to be acquired by Brookfield Business Partners and institutional partners for a total enterprise value of $8.3 billion.

In a development highlighting the dangers of ransomware operations, CDK Global, a software provider for car dealerships across the US and Canada, has reportedly paid a $25 million ransom to the BlackSuit ransomware group. This came about after a cyberattack disrupted operations.

CDK Global Inc., the software provider to roughly 15,000 car dealerships across North America that was crippled by a hack nearly two weeks ago, said “substantially all” of the dealers it serves have seen their management systems come back online.

Workers across the US automotive industry told CNN that the software blackout, which the company said was caused by a cyberattack, has made it difficult for dealers to track customer interactions, orders and sales, hurting their ability to earn a living.

In what will go down as the most spectacular IT failure ever, a botched software update from cybersecurity firm CrowdStrike Holdings crashed countless Microsoft Windows computer systems globally, impacting car dealers and suppliers, and other industries.

Component Shortages and Rising Costs: The industry faces a persistent shortage of key components, such as semiconductors, magnesium, and silicon, exacerbated by the pandemic and geopolitical tensions. Energy costs for electricity and gas are also rising, increasing production expenses.

Even oil changes are a challenge. Indeed, that hack has taken a toll on all of the roughly 15,000 auto dealers that rely on CDK Global software to run their service departments, process financing for car purchases, generate sales leads and manage customer relationships.