August 26, 2024
Imagine if the software your organization relies on to finalize deals and process payroll suddenly went offline, with no clear timeline for resolution. How would you respond? Could your business operations continue uninterrupted? What financial impact would this have? Unfortunately, in June, this scenario became a reality for over 15,000 car dealerships in the US and Canada due to two cyber-attacks on the industry software provider, CDK Global.
These attacks crippled the sales, financing, and payroll systems of 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 business owners.
What Happened?
The first attack struck on the evening of Tuesday, June 18. CDK Global promptly took the system offline to investigate. Although the system was restored the following day, a second attack necessitated another shutdown. Experts believe the system may have been brought back online too soon, before all vulnerabilities were identified, leading to the subsequent breach. Cybersecurity specialists estimate 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 inherent risks of depending on digital systems. In today's digital age, where transactions are just a few clicks away, any system downtime can severely disrupt business operations. Critical functions such as completing transactions, managing payroll, and interacting with financial institutions can grind to a halt, causing delays and potential financial losses. Business owners understand that a sale isn't complete 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 must thoroughly investigate to identify all compromised areas. Large companies often struggle to fully understand the extent of a cyber-attack after initial reviews, especially if multiple vulnerabilities exist.
In the meantime, businesses must critically assess their own systems for selling and operational continuity. Are they prepared to continue operations if such an event occurs again?
This incident serves as a crucial wake-up call for all business leaders. Without a robust business recovery and continuity plan, you are exposing yourself to significant risk. Even if you 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 it isn't, it's time to take action.
We offer a FREE call with our CEO that will accomplish two key objectives:
1. We will analyze your network for vulnerabilities, identifying potential attack points and offering solutions to fortify your defenses, ensuring you are not the next victim of a cyber-attack.
2. We will help you develop a continuity or recovery plan tailored to your organization. Cybersecurity is essential for doing business, but even the best security measures are not infallible. Therefore, you need a plan to quickly recover and continue operations if your network or a third-party software you rely on, like CDK, is compromised.
To get started, call our office at 201-719-7000 or click here to book your
FREE Call with Our CEO now.
