Michigan, USA – Michigan car dealerships are facing significant disruptions following a cyberattack on CDK Global’s software platform. The outage, caused by hackers demanding a ransom, has left auto dealership clients unable to access the dealer management system (DMS) for days. CDK Global has confirmed the cyber ransom event and is working to restore its systems, but major applications may take several days to come back online.

Amid the cyberattack, CDK Global warned car dealerships about phishing scams where bad actors pose as the company to obtain confidential information. While CDK is providing alternative ways for customers to conduct business, the impact of the attack on the industry is substantial.

The cybercriminals responsible for the attack, reportedly linked to a group called BlackSuit, have demanded a significant ransom. Despite negotiations and reports of CDK planning to pay the ransom, the company has not disclosed details about the attackers. The attack has disrupted car dealerships nationwide, forcing some to resort to manual processes like using pen and paper for transactions.

Ransomware attacks, like the one on CDK, are on the rise globally. In 2023, over 2,200 entities, including U.S. hospitals, schools, and governments, fell victim to ransomware attacks. Experts suggest that banning ransom payments could deter cybercriminals from engaging in such attacks.

In a preventative effort, the U.S. Department of State recently offered a reward for information on the leaders of the Hive ransomware gang, responsible for numerous cyberattacks worldwide. The need to address cybersecurity threats continues to grow as companies and institutions face mounting challenges in safeguarding sensitive data.