IT Security
"Everything is frozen": Third day of cyberattack paralyzes 15,000 car dealerships
Massive Cyberattack Paralyzes Over 15,000 Car Dealerships Across the U.S. On the third day of a widespread cyberattack, more than 15,000 car dealerships nationwide are experiencing severe disruptions. Their back-end management systems have been rendered inoperable, bringing sales to a standstill and forcing many dealerships to revert to manual, paper-based transaction processing. CDK Global, the leading provider of dealer management systems and digital retail solutions, reported that the initial security breaches began on Tuesday. Although CDK managed to restore its core systems by Wednesday afternoon, a second wave of attacks on Thursday forced another shutdown. As a result, thousands of dealerships have found it nearly impossible to buy or sell vehicles this week. Tom Maioli, owner of Celebrity Motor Car Company with dealerships in New York and New Jersey, described the situation to CBS MoneyWatch: “We cannot process any documents. Everything is frozen, everything is blocked—we cannot move money to pay off cars or fund our customers’ transactions.” He emphasized that his business is “completely paralyzed.” Customers across the country are being greeted by signs at dealerships explaining the ongoing technical issues and delays. On Thursday, X-user “Car Dealership Guy” appeared on CNBC, highlighting a critical question for the auto industry in the wake of this chaos: “Will the industry continue to centralize and consolidate technology? This has been the biggest trend in auto retail.” These disruptions have forced back-office staff to process orders and paperwork entirely by hand—a stark reminder of how dependent the industry has become on digital infrastructure. Brian Benstock, General Manager of Paragon Honda and Paragon Acura in Long Island City, told CNN, “My sales team can write a sales contract by hand.” While this demonstrates adaptability, it also underscores the vulnerability of modern dealerships to cyber threats. At this time, there are no reports indicating the involvement of foreign adversaries in the breach. CDK has not yet provided a timeline for the full restoration of its core systems. A major concern remains the potential economic fallout from this cyber incident, given the scale and significance of the automotive industry. In the fast-paced world of automotive sales, this incident clearly demonstrates the industry’s reliance on digital solutions—and its exposure to cyberattacks. The coming days will be crucial in determining how quickly affected systems can be brought back online and whether additional security measures will be implemented to prevent future incidents. How can you protect your business from a compliance disaster?Our automated data protection solution is designed to help you avoid and prevent compliance disasters and liability risks for your company. While no security measure can guarantee complete protection against all data breaches or losses, our backup solution ensures rapid recovery in the event of data loss.
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