A massive cyberattack is causing chaos in American car dealerships, affecting both dealers and customers.
According to BleepingComputer, a notorious extortion organization called the BlackSuit Ransomware Gang launched a cyberattack on CDK Global on June 19, with the impact yet to be seen as of June 30. BlackSuit has carried out a number of high-profile attacks in recent years, mostly against healthcare companies.
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CDK Global’s software is the lifeblood of the auto dealership industry. Dealers use it to track inventory on their lots, run credit checks, determine loan rates, close sales contracts, process payroll, and more. At least 15,000 dealers, or more than half of all auto dealers in the United States, use CDK.
This attack has forced dealers to perform these tasks manually at best and not at all at worst. June is not only a busy month for car sales; the Juneteeth holiday is an especially busy day because many people are off work. The impact was immediate and MotorTrend estimates that losses could be between $4 billion and $16 billion.
Impact on dealer customers
For the dealership’s customers, this attack and subsequent business disruption means several things.
1. If you are planning to buy a car, expect a longer processing time.
The attack affected nearly every part of the process, but internal funding was one of the areas that saw the most delays. If you have funding from an external bank or are paying in cash, the problem isn’t as big, but you can still expect delays in other areas.
2. When you buy a car, you should expect to visit your local vehicle registration office.
CDK software allows dealers to automatically register vehicles with local authorities so they can submit the appropriate paperwork and create a license plate. Without this software, however, dealers or even customers have to make a trip and wait in even longer lines at the vehicle registration office.
3. Expect delays when you need the service.
Dealers use CDK software to schedule service appointments, track parts inventory, and view service history. Service departments operate without the software, but the process takes a little longer and they write everything down on paper. Once the CDK software is back online, dealers have to enter all of that paperwork. Multiply all of the appointments, all of the weeks, and all of the dealers involved, and it could be a pretty chaotic situation for service departments.
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While affected merchants are still doing business, many are resorting to the far less secure pen and paper method. If you’re even the slightest bit worried about identity theft, this is a major red flag.
It has not been disclosed how much the Blacksuit gang demanded, but CDK is reportedly paying the ransom demanded. Some merchants have had their software access restored, but many more are still affected.
Blacksuit has made over $275 million in ransom demands since September 2022.
