Car dealerships in North America switch back to using pens and paper after cyberattacks on software provider
NEW YORK (AP) — Car dealerships in North America continue to struggle with significant disruptions that began last week due to cyberattacks on a widely used software company in the auto retail sales sector.
CDK Global, a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by consecutive cyberattacks on Wednesday, leading to an outage that has impacted operations.
Prospective car buyers have experienced delays at dealerships or have had vehicle orders written up manually. CDK has stated that the restoration process is expected to take several days to complete.
Group 1 Automotive Inc., a $4 billion automotive retailer, has stated that they are using alternative processes to continue selling cars to customers.
What is CDK Global?
CDK Global is a significant player in the auto sales industry. The company, based near Chicago in Hoffman Estates, Illinois, provides software technology to dealers to assist with daily operations such as vehicle sales, financing, insurance, and repairs.
CDK serves over 15,000 retail locations across North America.
What happened last week?
CDK experienced back-to-back cyberattacks on Wednesday, causing the company to shut down all systems. A spokesperson stated that they have initiated the restoration process and are conducting an investigation with third-party experts and law enforcement.
The company warned customers about potential phishing attempts by individuals claiming to be associated with CDK.
While many dealerships utilizing CDK software have transitioned to manual processes, sales operations are still ongoing for various major auto companies.
Group 1 Automotive Inc. in the U.S. has taken measures to protect its systems from the CDK platform, continuing to operate using alternative processes until CDK's systems are available.
Consumer privacy is a concern, with experts advising those connected to CDK to monitor their credit and beware of phishing messages.
The National Automobile Dealers Association emphasized the importance of protecting customer information and seeking updates from CDK to respond accordingly.
