August 26, 2024
Imagine if the software your organization relies on for closing deals and processing payroll suddenly went offline, with no clear timeline for resolution. How would you respond? Could your business continue to operate, and what financial impact would you face? This scenario became a reality for over 15,000 car dealerships in the US and Canada when cyber-attacks targeted CDK Global, a leading software provider in the automotive industry, in June.
The attacks disrupted sales, financing, and payroll systems for thousands of dealerships, forcing them to either halt operations or revert to manual, paper-based processes. This situation underscores the critical need for robust cybersecurity measures, especially for small business owners.
What Happened?
The first attack was detected on the evening of Tuesday, June 18. In response, CDK Global acted swiftly by taking the entire system offline to investigate. Although the system was restored the next day, a second incident led to another shutdown. It's suspected that the system was reactivated too soon, before all vulnerabilities were identified, leading to the second attack. Experts predict it could take weeks for full operational restoration.
While some businesses managed to switch to manual operations, the incident highlights the risks of dependency on digital systems. In today's digital age, where most transactions are just a click away, significant challenges emerge when systems go down. Critical business functions, such as completing transactions, managing payroll, and interacting with financial institutions, can be severely impacted. Until systems are restored, business operations face delays and potential financial setbacks. Business owners understand that a sale is not complete until the payment is processed!
So, What's Next?
CDK Global has not disclosed the exact cause of the attack, whether due to uncertainty or intentional discretion. Their security team must thoroughly examine all business areas to identify the compromised elements. It's often challenging for large companies to accurately assess cyber-attacks in the initial review, especially if multiple vulnerabilities exist.
In the meantime, businesses need to critically evaluate their sales and operational continuity systems. Are they prepared to maintain operations if a similar incident occurs again?
This incident should prompt business leaders to take action. If you lack a business recovery and continuity plan, you're exposing yourself to significant risk. If you have a plan, assess its quality, frequency of testing, and ability to handle large-scale attacks that disable multiple operational systems. If the answer is no, it's time to make improvements.
Free Consultation Offer
We offer a FREE consultation to achieve two key objectives:
- Network Vulnerability Analysis: We'll assess your network for potential vulnerabilities, identifying where attacks could occur and providing solutions to address them, reducing your risk of becoming the next cyber-attack victim.
- Continuity and Recovery Planning: We'll help you develop a continuity or recovery plan tailored to your organization. While cybersecurity is crucial, no solution is entirely foolproof. Therefore, it's essential to have a strategy to recover and continue operations if your network or a critical third-party software, like CDK, is compromised.
To get started, call our office at 630-320-3723 or click here to book your
FREE Consult now.
