CDK announces recovery underway for auto dealers following cyberattack

After a cyberattack on CDK Global caused computer systems to shut down at car dealerships nationwide, the company said it had begun restoring the systems.

CDK, which supplies software to car dealerships, shut down operations on Wednesday after two consecutive cyberattacks. Bloomberg reported that a group claiming to be the hackers is demanding a ransom in the tens of millions of dollars.

While work is underway to get services back up and running, CDK estimates the process will take several days.

Auto dealers such as AutoNation and peer Lithia Motors said they had experienced disruptions that were likely to negatively impact their business, Reuters reported on Monday. Some dealers have switched back to paper to conduct their business.

USA TODAY reached out to CDK on Monday for an update.

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Hackers attacked CDK Global’s car dealer management system

The cyberattack on CDK was first reported on Wednesday and prompted the company to shut down most of its systems “out of an abundance of caution,” a CDK spokesperson previously told USA TODAY.

CDK restored some systems in the afternoon, but another cyberattack later that evening caused the company to take systems offline again, according to a letter sent to customers.

The work to fully restore the software is expected to take several days.

What is CDK Global?

CDK is one of the leading providers of cloud-based software for auto dealerships in the country. CDK’s software helps auto dealerships manage vehicle purchases, sales, financing, insurance, repairs and maintenance. The company’s website says it offers a “three-tier cybersecurity strategy to prevent, protect and respond to cyberattacks.”

According to its website, CDK works with more than 15,000 retail locations across the country.

Is CDK still down?

CDK did not immediately respond Monday to USA TODAY’s request for an update on how many companies were affected and whether work had been restored at any.

However, CDK began recovery processes on Saturday, which are expected to take “several days,” according to a company spokesperson.

CDK hackers demanded millions in ransom: reports

According to Bloomberg, an Eastern European cybercrime group is believed to be behind the attack. CDK is reportedly willing to pay the tens of millions of dollars demanded, but Bloomberg says negotiations could develop.

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