Majority of third-party software integrations back online after CDK outages

Author

Anna del Villar
July 23, 2024

CDK Global's dealership management system (DMS) has been fully restored for its nearly 15,000 customers, and around 90% of external software integrations are back online after the June 19 cyberattacks.

CDK CEO Brian MacDonald confirmed these recovery milestones to Automotive News but noted that the investigation into potential data breaches is still ongoing.

Why it matters: The June cyberattacks disabled many critical car sales and service operations for weeks, affecting nearly half of all dealers in the U.S. Many of these dealers resorted to pen and paper to keep processes running, although some shuttered their doors, unable to adequately assist car buyers. But anonymous sources tell CDG News that they are still experiencing ongoing glitches with the software and its integrations.

Key details:

  • Most DMS systems were restored before the July 4 holiday.

  • Reports suggest CDK paid nearly $25 million in ransom, but this is unconfirmed.

The big picture: The cyberattacks raised concerns about the security of personal and dealership data and have prompted many retailers to rethink their technology architecture. CDK’s investigation, "assisted by third-party experts," has yet to determine if any data was stolen. CDK also has FTC permission to file a consolidated notice if a breach affecting at least 500 customers is found.

What they're saying: MacDonald went on to state that no events triggered federal, state, or provincial reporting have been identified.

What's next: MacDonald said CDK will continue to provide updates as they become available and previously mentioned that CDK would also offer compensation to affected dealerships, but the details of that measure remain unclear.

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