North American car dealerships revert to pen and paper after cyberattack

Car dealerships in North America are grappling with significant disruptions due to cyberattacks targeting CDK Global, a software provider widely used in the auto retail sales sector. Since last Wednesday, the outage has persisted, impacting dealership operations and causing delays for prospective car buyers, who may experience vehicle orders being written by hand. CDK Global anticipates that the restoration process will take "several days" to complete.

Major dealership chains, including Group 1 Automotive Inc., Lithia Motors, and AutoNation, have implemented alternative processes to continue sales. These adjustments are necessary as the dealerships navigate through the ongoing challenges posed by the cyberattack.

What is CDK Global?

CDK Global, headquartered in Hoffman Estates, Illinois, is a pivotal entity in the auto sales industry, providing software technology that aids in vehicle sales, financing, insurance, and repairs to over 15,000 retail locations across North America.

The Cyberattack Incident

Last Wednesday, CDK faced consecutive cyberattacks, prompting the company to shut down its systems twice for safety measures. Spokesperson Lisa Finney confirmed that the restoration process had begun and an investigation, involving third-party experts and law enforcement, was underway. CDK also alerted customers about phishing attempts by individuals posing as CDK representatives. The attack exhibited typical ransomware characteristics, although CDK did not confirm whether a ransom demand was made.

Current Impact on Dealerships

Despite the disruptions, several auto companies, including Stellantis, Ford, and BMW, have confirmed that sales operations are ongoing. Many dealerships have reverted to manual processes to serve customers, leading to inefficiencies and delays. For instance, John Crane of Hawk Auto Group mentioned that they're resorting to pre-digital methods, resulting in stacks of paper awaiting processing instead of automated systems.

Group 1 Automotive Inc. and others have taken protective measures to isolate their systems, while AutoNation reported lower productivity due to manual or alternative processes. Although sales continue, administration struggles with increased workloads.

Protecting Personal Data

Customers are concerned about potential data breaches. Experts advise monitoring credit, considering identity theft insurance, and being cautious of phishing scams. Verifying contact information through official company websites can help avoid falling victim to such attempts.

Given the increasing value of personal data, it's crucial to take proactive steps to safeguard it. Maintaining vigilance can help mitigate the risks associated with such cyber incidents.

The situation remains dynamic, with dealerships adapting to maintain operations while awaiting complete system restoration by CDK Global.