CDK Global calls cyberattack that crippled its software platform a “ransom incident”

How the CDK cyberattack is affecting Michigan car dealerships

CDK Global is now saying The cyber attack that destroyed its software platform for its auto dealership customers as “a ransom event.”

In a note to customers on Saturday, CDK acknowledged for the first time that the hackers who breached its dealer management system, or DMS, Unavailable to customers for several daysThey are demanding ransom to restore your system.

“Thank you for your patience while we recover from the cyber ransomware incident that occurred on June 19,” CDK said in a memo sent to clients on Saturday, according to a copy of the email obtained by CBS MoneyWatch.

CDK also said in the note that it has begun restoring its systems and that it expects the process of getting key applications back online “will take several days, not weeks.”

Beware of phishing

In its memo, the company also warned car dealerships to be cautious of phishing scams, or entities posing as CDKs, which are actually bad actors attempting to obtain customers’ proprietary information, such as passwords.

A CDK spokesperson told CBS MoneyWatch that it is providing clients with “alternative ways to trade” while its systems are down.

The cybercriminals behind the CDK attack are associated with a group called Blacksuit. Bloomberg reported on Monday, citing Alan Liska of computer security firm Recorded Future. On June 21 StoryThe media outlet also said that the hackers were demanding millions of dollars and that CDK planned to pay the ransom.

Liska did not immediately respond to a request for comment. CDK itself has not pointed to any group behind the attack on its systems. Car dealerships across America are in a state of panic over the past week. Companies targeted under ransomware schemes are often reluctant to disclose information while negotiating with hackers over payment.

“Doing everything manually”

The hacking has caused some car dealers to shut down their businesses entirely, while others are resorting to pen and paper and even “sticky notes” to record transactions.

Tom Maioli, owner of Celebrity Motor Car Company, which operates five luxury car dealerships in New York and New Jersey, told CBS MoneyWatch on Monday that his workers are “doing everything manually.”

“We are trying to keep our customers happy and the biggest problem is the banking side, which is a complete failure. We cannot finance deals,” he said.

Ransomware attacks are on the rise. In 2023, more than 2,200 institutions, including US hospitals, schools and governments, will be directly affected by ransomware, the report found. Amysoftan anti-malware software company. Additionally, thousands of private sector companies were targeted. Some experts believe the only way to stop such attacks is to ban ransom payments, which Emishof said would cause the bad guys to “increasingly move away from high-impact encryption-based attacks to other less destructive forms of cybercrime.”

Earlier this year, the US State Department $10 million offered in exchange for identity About the leaders of the Hive ransomware gang, which has been responsible for attacks on more than 1,500 institutions in over 80 countries since 2021, resulting in the theft of more than $100 million.


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