By Jennifer Rae Vliet
CDK Global is the software management system for the sales, service and parts processing in our countries automotive industry. Since last week it has suffered a severe hack attack rendering it useless and is now being held for ransom. This software outage has not only affected the USA, but since CDK Global is used in Canada, they have been knocked down as well.
80% of America’s car dealerships’ sales and service departments came to a grinding halt last Wednesday due to this acute hack and while the system is still down, workers are resorting to the usage of pen and paper deals as well as carbon copied transactions. These now deemed old school processes are being implemented to try and salvage the flow of the sale of cars and auto repairs.
Think of all the tentacles of the auto industry. They connect many systems that communicate through cyber routes…this leads to issues with ordering, shipping, receiving, accuracy of and access to inventory, credit checks, the ease of electronic registration with our DMVs, as well as the ADP Payroll services; it is all connected.
What has FBI Director Christopher Wray been warning the American people about in the last few months about Cyber Attacks?
CDK Global is calling this a cyberattack a “ransom event” and as CBS News reported, “In a note to clients Saturday, CDK for the first time acknowledged that the hackers that made its dealer management system, or DMS, unavailable to clients for days, are demanding a ransom to restore its systems.” “
How does ADP Payroll play into this hack? Lauren Fix, the Car Coach reports that the FBI is investigating this hack as there was a cyber-attack within the original cyberattack! Just two hours after the CDK Global hack, ADP which was used to access CDK Global, claimed, “we are here to help everyone and undo the cyber-attack” but it was in fact, another tier and a fake out if you will of the initial cyber-attack. You can watch her report here:
In summary, CDK is hopeful this takedown will be short lived and hopefully will be resolved by months end. This should make us wonder what else is on the horizon that will disrupt the American way of life and our businesses as we know it. A great time to keep our heads on a swivel and always a splendid time to pray.