US car dealerships reeling from massive cyberattack: 3 things customers should know | ZDNET
Chaos at American Car Dealerships
A massive cyberattack is wreaking havoc at car dealerships across the United States, affecting both dealers and customers. The notorious BlackSuit ransomware gang targeted CDK Global, a key player in automotive software, on June 19, and the fallout is ongoing.
The Impact on Dealership Operations
CDK Global’s software is integral to car dealerships, handling everything from inventory tracking to credit checks and loan processing. Over 15,000 dealerships, more than half of all U.S. auto dealers, rely on this system. With the software down, dealerships are resorting to manual processes, leading to significant slowdowns.
MotorTrend estimates that losses from the attack could range between $4 billion and $16 billion. June is a particularly busy month for car sales, especially around the Juneteenth holiday, exacerbating the impact.
How Customers Are Affected
For customers, the disruption means delays and inconveniences. Here are three key points to consider:
1. Expect Longer Wait Times for Car Purchases
If you’re planning to buy a car, be prepared for delays. The attack has slowed nearly every part of the process, particularly in-house financing. While external financing or cash purchases may be less affected, other aspects of the transaction will still take longer.
2. Prepare for DMV Visits
Normally, dealerships use CDK software to register vehicles with local governments. Without this system, dealers or customers will need to handle the registration process manually, leading to longer wait times at the DMV.
3. Anticipate Service Delays
Dealerships also rely on CDK software to schedule service appointments and manage parts inventory. Without it, service departments are using pen and paper, which is much slower. Once the software is back online, all manual records will need to be entered into the system, creating additional delays.
Security Concerns and Ransom Payments
The attack has forced many dealerships to use less secure methods, raising concerns about identity theft. While some dealerships have had their software access restored, many are still struggling.
It remains unclear how much the BlackSuit gang demanded in ransom, but reports indicate that CDK Global is paying the ransom to resolve the issue. Since September 2022, BlackSuit has made over $275 million in ransom demands.
Conclusion
The cyberattack on CDK Global by the BlackSuit ransomware gang is causing significant disruption for U.S. car dealerships and their customers. With delays in car purchases, service appointments, and increased security risks, the industry is facing a challenging time. As dealerships work to restore their systems, customers should brace for continued inconveniences and potential delays.
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