Cyberattack Crisis: Michigan Car Dealerships Struggle After CDK Ransom Event

Lansing, Michigan – CDK Global’s recent cyberattack on its software platform has left Michigan car dealerships struggling to conduct business as hackers demand a ransom to restore the system. The attack, acknowledged by CDK in a note to clients, has disrupted the dealer management system, or DMS, making it unavailable for days. The company has begun restoring its systems, but major applications are expected to take several days to come back online.

In response to the attack, CDK has cautioned car dealerships to be wary of phishing scams, with bad actors posing as CDK to obtain sensitive information. While CDK works to fix the issue, customers are being provided with alternative ways to conduct business. Reports suggest that the hackers behind the attack, affiliated with a group called BlackSuit, are demanding a significant ransom, with CDK rumored to be considering payment.

The impact of the cyberattack has varied for car dealerships, with some resorting to manual methods like pen and paper to continue operations. This incident highlights the growing threat of ransomware attacks, which have affected thousands of entities across various sectors. Experts suggest that prohibiting ransom payments could deter cybercriminals from engaging in such activities.

Efforts to combat ransomware have included the U.S. Department of State offering rewards for information on ransomware gangs. The recent surge in ransomware attacks emphasizes the need for enhanced cybersecurity measures and strategies to prevent future incidents. As the situation unfolds, Michigan’s car dealerships continue to grapple with the aftermath of the cyberattack, highlighting the ongoing challenges posed by cybersecurity threats in the digital age.