August 26, 2024
Imagine the software your organization relies on to close deals and pay employees suddenly goes offline with no clear timeline for restoration. How would you react? Could you continue your operations? What financial impact would this have? Unfortunately, this scenario became a reality for over 15,000 car dealerships in the US and Canada in June when two cyber-attacks targeted CDK Global, a widely-used industry software provider.
These cyber-attacks crippled the sales, financing, and payroll systems of thousands of dealerships, forcing them to either halt operations or revert to manual methods. This incident underscores the critical need for robust cybersecurity measures for all small business owners.
What Happened?
The first attack struck on the evening of Tuesday, June 18. Upon detection, CDK Global took immediate action by bringing the entire system offline to investigate. Although the system was restored the following day, a second attack soon followed, necessitating another shutdown. It appears the system was brought back online too soon, before all vulnerabilities were addressed, leading to the second breach. Experts suggest it could take weeks for the system to be fully operational again.
While some businesses managed to switch to manual processes, this incident highlights the risks of depending solely on digital systems. In our increasingly digital world, where most transactions are just a few clicks away, any system downtime can cause significant disruptions. Essential business functions like completing transactions, managing payroll, and interacting with financial institutions can grind to a halt. Until systems are restored, many business operations remain incomplete, resulting in delays and potential financial losses. Business owners understand that a sale isn't finalized until the payment clears the bank.
So, What's Next?
CDK Global has not disclosed the exact cause of the attack, leaving it unclear whether this is intentional or due to ongoing uncertainty. Their security team will need to conduct a thorough investigation to identify the compromised areas. Large companies often struggle to fully understand the extent of a cyber-attack after an initial review, especially if multiple vulnerabilities are involved.
In the meantime, businesses must critically assess their systems for sales and operational continuity. Are they prepared to maintain operations if such an incident occurs again?
This event should serve as a wake-up call for business leaders. Without a robust business recovery and continuity plan, you are putting your organization at significant risk. Even if you have a plan, it needs to be high-quality, frequently tested, and capable of handling large-scale attacks that disable multiple operational systems. If your plan falls short, it's time to take action.
Next Steps
We offer a FREE Discovery Call that accomplishes two crucial objectives:
- Network Vulnerability Analysis: We'll assess your network for vulnerabilities, identify potential attack points, and provide solutions to patch these gaps, reducing your risk of becoming the next cyber-attack victim.
- Continuity and Recovery Planning: We'll help you develop a continuity or recovery plan tailored to your organization. While cybersecurity is essential, no solution is 100% foolproof. Therefore, it's crucial to have a plan in place to resume operations quickly if your network or any third-party software you depend on, like CDK, is compromised.
Don't wait for a crisis to take action. Secure your business today.
To get started, call our office at (951) 742-8020 or click here to book your
FREE Discovery Call now.
