August 26, 2024
Imagine the software your organization relies on to close deals and pay employees suddenly goes offline, with no clear timeline for a fix. How would you respond? Could your business continue operating? How much financial loss would you incur? This scenario became a harsh reality for over 15,000 car dealerships in the US and Canada in June when CDK Global, a leading industry software provider, was hit by two cyber-attacks.
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 serves as a stark reminder for all small business owners about the critical importance of robust cybersecurity measures.
What Happened?
The first attack occurred on the evening of Tuesday, June 18. Upon detection, CDK Global promptly took the system offline to investigate. Although the system was restored the next day, a second attack ensued, compelling the company to take it offline again. It is believed the system was reactivated prematurely, before all vulnerabilities were fully identified, leading to the second breach. Cybersecurity experts estimate it could take weeks before the system is fully operational again.
Some businesses managed to revert to manual processes, but the incident underscores the inherent risks of relying on digital systems. In our increasingly digital world, where transactions are just a few clicks away, significant disruptions occur when systems go offline. Essential business 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 check clears the bank.
What's Next?
CDK Global has not disclosed the exact cause of the attack, leaving it unclear whether this is due to strategic reasons or ongoing uncertainty. Their security team will need to conduct a thorough investigation to determine the full extent of the breach. Large companies often struggle to accurately assess the details of cyber-attacks after an initial review, especially if multiple vulnerabilities are involved.
Meanwhile, businesses must scrutinize their systems for sales and operational continuity. Are they prepared to continue operations if a similar incident occurs?
This incident should be 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 already have a plan, ask yourself if it is robust, regularly tested, and capable of handling a large-scale attack that disables multiple operational systems. If the answer is no, it's time to take action.
Our Offer
We offer a FREE consultation that will accomplish two crucial objectives:
- Network Vulnerability Analysis: We will examine your network for vulnerabilities, identify potential attack points, and provide solutions to fortify your defenses, reducing the risk of becoming the next cyber-attack victim.
- Continuity and Recovery Planning: We will help you develop a continuity or recovery plan tailored to your organization. While cybersecurity is essential, even the most advanced security measures are not entirely foolproof. Therefore, it's vital to have a plan to quickly recover and continue operations if your network or a critical third-party software, like CDK, is compromised.
Don't wait for a cyber-attack to disrupt your business. Take proactive steps now to safeguard your operations and ensure business continuity.
To get started, call our office at 954-327-1001 or click here to book your
FREE Consult now.
