Imagine the software your organization relies on to close deals and pay employees suddenly went offline, with no clear timeline for restoration. How would you cope? Could your business continue operating? What financial impact would you face? Unfortunately, in June, this exact scenario became a reality for over 15,000 car dealerships across the US and Canada when two cyber-attacks targeted the industry software provider CDK Global.
These attacks crippled the sales, financing, and payroll systems for thousands of dealerships, forcing them to either halt operations or revert to manual pen-and-paper 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. CDK Global responded by immediately taking the system offline to investigate. Although the system was restored the next day, a second attack prompted another shutdown. Experts believe the system may have been reactivated prematurely, before all vulnerabilities were identified, leading to the subsequent breach. Cybersecurity specialists predict it could take weeks for the system to be fully operational again.
While some businesses managed to switch to manual processes, the incident highlights the vulnerabilities associated with digital dependency. In our increasingly digital world, where most transactions are just a few clicks away, significant disruptions occur when systems go offline. Critical business functions—such as completing transactions, managing payroll, and interacting with financial institutions—can grind to a halt. Until systems are restored, many business operations face delays and potential financial losses. As business owners know, a deal isn't done until the check clears the bank!
So, What's Next?
CDK Global has not disclosed the precise cause of the attacks. Whether this is intentional or due to ongoing investigations remains unclear. Their security team must thoroughly examine every aspect of the business to identify all compromised areas. Large companies often struggle to fully understand the extent of cyber-attacks after an initial review, especially if multiple vulnerabilities are involved.
In the meantime, businesses should critically evaluate their systems for sales and operational continuity. Are they prepared to continue operating if a similar incident occurs?
This incident should serve as a wake-up call for all business leaders. If you lack a business recovery and continuity plan, you're exposing yourself to significant risk. And if you do have a plan, you must ensure it is high-quality, frequently tested, and capable of handling large-scale attacks that disable multiple operational systems. If not, it's time to take action.
We offer a FREE consultation to help you:
- Analyze your network for vulnerabilities. This assessment will identify potential attack points and provide solutions to fortify your defenses, reducing the risk of becoming the next cyber-attack victim.
- Determine the most suitable continuity or recovery plan for your organization. While cybersecurity is essential, no solution is entirely foolproof. Therefore, having a robust plan to bounce back and continue operations in the event of a network breach or third-party software failure, like CDK, is crucial.
To get started, call our office at 916-884-0400 or click here to book your FREE consult now.