Car dealer software slinger CDK Global said to have paid $25M ransom after cyberattack
Who:
CDK Global, a software provider for car dealerships.
Up to 15,000 car dealerships, including major chains like Asbury, AutoNation, Group 1, Lithia, and Sonic.
What:
CDK Global reportedly paid a $25 million ransom in Bitcoin after a ransomware attack.
The attack led to a two-week outage of CDK’s software platform, severely disrupting operations for car dealerships across the U.S.
The ransomware group BlackSuit is suspected to be behind the attack.
Impact:
Financial Loss: The attack cost CDK $25 million in ransom and caused an estimated $600 million in damages to dealerships during the first two weeks of the shutdown.
Operational Disruptions: The outage halted sales and registrations, affecting the entire car dealership network reliant on CDK’s software.
Recovery Efforts: CDK took several days to restore services, likely using backups and information from decrypted systems. Some systems and third-party applications remain offline.
Industry-Wide Repercussions: The incident impacted the reputation and customer relations of affected dealerships, with ongoing legal and operational ramifications.
Trend in Ransomware Attacks: The attack on CDK is part of a broader trend, with ransomware incidents increasing but fewer victims choosing to pay ransoms.
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