Car dealership software shut down after cyber attack

A cyberattack on software provider CDK Global disrupted operations at auto dealerships across the United States on Wednesday.

CDK spokeswoman Lisa Finney said the company shut down most of its systems “out of an abundance of caution” for customers. By Wednesday afternoon, the company had restored its core document management system and digital retail solutions.

“We continue to conduct extensive testing of all other applications and will provide updates as soon as we bring those applications back online,” Finney said in an emailed statement.

Finney did not respond when asked how many retailers were affected, but CDK’s website says the company works with more than 15,000 retail locations across North America.

What does CDK Global do?

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.”

Why are car dealerships the target of cyberattacks?

The incident followed a cyberattack on Findlay Automotive Group last week. The automaker – which operates in five states – said the attack limited its ability to conduct sales and service, the Las Vegas Review-Journal reported.

A 2023 report from CDK finds that cybercriminals are a growing threat to auto dealerships. 17% of 175 dealers surveyed were victims of a cyberattack or incident in the past year, up from 15% the year before. Of those dealers, 46% reported that the cyberattack had a negative financial or operational impact.

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