Tech Company Agrees to Pay Large Ransom to Cybercriminals after Widespread Cyberattack on Car Dealerships in North America
Money | June 22, 2024, 1:53 p.m.
CDK Global, a software provider for thousands of North American car dealerships, has reportedly been hacked by a group demanding tens of millions of dollars in ransom. The company is planning to make the payment, with the hacking group believed to be based in eastern Europe. Since the breach was discovered on June 19, chaos has ensued at many dealerships, affecting sales, repairs, and deliveries in a billion-dollar industry. CDK briefly restored some services but was hit by a second cyberattack, leading to further disruptions. The demand for a large ransom follows similar attacks on other companies, highlighting the growing threat of cybercrime. CDK warns customers to be cautious of outside parties posing as affiliated with the company. The attack has also impacted CDK's parent company and other car dealership groups, emphasizing the widespread consequences of such attacks in the automotive industry.