August 26, 2024
Imagine the software your organization relies on for closing deals and paying employees suddenly went offline, with no clear timeline for resolution. What steps would you take? Could your business operations continue? How much financial impact would you face?
In June, this scenario became a reality for over 15,000 car dealerships in the U.S. and Canada when two cyber-attacks targeted CDK Global, a leading industry software provider. These attacks disabled sales, financing, and payroll systems, forcing many dealers to halt operations or revert to manual processes. This incident underscores the critical need for robust cybersecurity measures for all businesses.
The Incident
The first attack occurred on the evening of Tuesday, June 18. Upon detection, CDK Global promptly took the system offline to investigate. Although the system was restored the next day, a second attack forced another shutdown. It appears that the system was brought back online too soon, before all vulnerabilities were identified, leading to the second breach. Cybersecurity experts suggest it could take weeks for the system to be fully operational again.
While some dealerships managed to switch to manual operations, the incident exposed the risks of relying heavily on digital systems. In our increasingly digital world, where transactions are just a few clicks away, significant disruptions occur when systems go offline. Critical business functions like completing transactions, managing payroll, and interacting with financial institutions can grind to a halt, causing delays and potential financial losses. Business owners are acutely aware that a sale isn't complete until the payment is securely processed.
What's Next?
CDK Global has not disclosed the exact cause of the attack, leaving it unclear whether this is due to ongoing investigations or intentional non-disclosure. The company's security team will need to thoroughly examine every aspect of their system to identify all compromised areas. Large organizations often struggle to fully understand the extent of a cyber-attack initially, especially if multiple vulnerabilities are exploited.
In the meantime, businesses must scrutinize their own systems for selling and operational continuity. Are they prepared to maintain operations if a similar incident occurs?
This situation should be a wake-up call for all business leaders. If you lack a business recovery and continuity plan, you are exposing yourself to significant risk. Even if you have a plan, you must ensure it is high-quality, regularly tested, and capable of handling large-scale disruptions. If not, it's time to take action.
Our Offer
We offer a FREE Consultation that will achieve two critical objectives:
- Identify Vulnerabilities: We will analyze your network to pinpoint potential attack vectors and provide solutions to mitigate these risks, helping you avoid becoming the next victim of a cyber-attack.
- Develop Continuity Plans: We will assist you in crafting a continuity or recovery plan tailored to your organization's needs. While robust cybersecurity is essential, no system is entirely foolproof. Therefore, having a plan to quickly recover and continue operations is crucial, whether the disruption affects your network or a third-party software like CDK.
Don't wait for a cyber-attack to disrupt your business. Take proactive steps now to safeguard your operations and ensure business continuity.
To get started, call our office at 800-626-3223 or click here to book your
FREE Consultation now.
