Massive Cyberattack on Car Dealership Sparks Second Lawsuit for Data Breach

Money | June 26, 2024, 11:54 a.m.

CDK Global, a software provider for nearly 15,000 car dealerships in North America, has been hit by back-to-back cyberattacks, causing major disruptions in dealership operations. As a result, its systems are expected to remain offline until at least the end of June. The company is facing potential class-action lawsuits for failing to protect customers' and employees' personal information, including names, addresses, social security numbers, and financial data. Dealerships are scrambling to find alternative ways to conduct business without access to CDK's services, such as e-signing and appointment scheduling tools. Major dealers like Group 1 and Sonic Automotive are assessing the impact on their operations, while others, like CarMax, are adapting to the situation. The ransomware group behind the attack is demanding millions of dollars in ransom, further complicating the situation. CEO Brian MacDonald is actively communicating with dealers, promising to restore services over the next few days, not weeks.