CDK Global Cyberattack Forces Dealerships in Mohave County and Tri-State Area to Resort to Manual Operations

Published by The Bee News

June 21, 2024

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Mohave County, AZ, June 21, 2024 – CDK Global, a leading provider of cloud-based software for dealerships, has shut down its systems “out of an abundance of caution” following a cyberattack that left its systems vulnerable. This shutdown has significantly impacted dealerships throughout Mohave County, including Bullhead City, Kingman, and Lake Havasu City.

Impact on Dealerships

The sudden shutdown of CDK’s systems has forced local dealerships to revert to manual operations, using handwritten forms to continue their daily business activities. This disruption has caused significant delays and operational challenges as these systems are critical for managing vehicle acquisitions, sales, financing, insurance, repairs, and maintenance.

Without access to CDK’s software, dealerships in the area are struggling to maintain their usual pace of operations. The backlog created by the reliance on manual processes will need to be addressed once the automated systems are back online.

What CDK Global Does

CDK Global is among the leading providers of cloud-based software to dealerships across the country. Their software is integral in helping dealerships manage various aspects of their operations efficiently and effectively. The sudden unavailability of these systems has highlighted the dependency of modern dealerships on robust digital infrastructure.

Cybersecurity Strategy

Despite having a comprehensive “three-tiered cybersecurity strategy to prevent, protect, and respond to cyberattacks,” CDK Global fell victim to a cyberattack. This incident underscores the persistent threat of cybercrime in today’s digital landscape. CDK Global’s proactive approach aims to safeguard its systems and customer data from potential cyber threats; however, this attack has revealed vulnerabilities that even the most prepared organizations can face.

Manual Operations and Contingency Plans

In response to the shutdown, many dealerships have implemented contingency plans to minimize disruption. For instance, Craig Schreiber, one of the owners of Northtown Automotive Companies, credits his company’s preparedness for allowing them to continue servicing and selling vehicles despite the outage. By reverting to manual forms and “going old school,” Schreiber’s dealerships have managed to keep operations running, albeit with some delays.

Growing Threat

Cybersecurity threats targeting car dealerships are on the rise. A 2023 report from CDK Global indicated that 17% of surveyed dealers experienced a cyberattack or incident within the past year, up from 15% the previous year. Dealerships hold vast amounts of sensitive customer data, including credit applications and financial information, making them attractive targets for hackers.

Sensitive Customer Data

The sensitive data held by dealerships is highly valuable to hackers and can be used for malicious purposes. Dealership systems often interconnect with external service providers and portals, increasing the risk of breaches. Unfortunately, many dealerships lack basic cybersecurity protections, further exposing them to potential attacks.

Conclusion

As CDK Global works diligently to restore its systems and secure its infrastructure against future threats, local dealerships in Mohave County and the Tri-State area are doing their best to continue serving customers under challenging circumstances. The community’s resilience and adaptability during this time are commendable.

For further updates on this situation and other local news, please stay tuned to The Bee News.

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