CDK Global dealership software hit by "cyber incident" affecting 15,000 dealers

CDK Global, a software-as-a-service provider that serves nearly 15,000 dealer locations with customer relationship management tools, financing, inventory, and other back-office functionalities, has been hit by a cyber incident that has taken down its systems for several days. The company provides its services to dealerships and trucking industry customers.

The company first acknowledged the incident on Wednesday, June 19, informing its customers that it had temporarily restored some services. However, in a subsequent update, CDK reported that it had "experienced an additional cyber incident late in the evening on June 19", forcing it to shut down its systems once more.

As of Thursday, June 20, the company still had not restored its services and provided an automated message that "our dealers' systems will not be available likely for several days". This message was reported by several sources and also stated that the support lines would remain down due to security precautions.

This incident has impacted the ability of dealerships to sell and service vehicles, with some dealerships reporting that they can only offer oil changes, while others are required to document sales orders manually. Many Reddit users working in the impacted dealerships have expressed their frustration with the situation and some are actively looking for alternatives to CDK Global's software.

It is still unclear what the nature of the cyber incident is, although it is possible that it is a ransomware attack. Dealerships have been a popular target for ransomware operators in the past, due to the amount of personal customer data they retain. In 2023, CDK released a report on cybersecurity, noting that dealerships suffered an average of 3.4 weeks of downtime from ransomware attacks, or potentially paid out an average of $740,144 to attackers.

Lisa Finney, senior manager for external communications at CDK, acknowledged the incident in a statement on Thursday, stating that "in partnership with third-party experts, we are assessing the impact and providing regular updates to our customers&quot.

Enlarge: Ford Mustang Mach E electric vehicles are offered for sale at a dealership on June 5, 2024, in Chicago, Illinois. Scott Olson / Getty Images

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