Imagine the scenario where the software your organization relies on to finalize deals and process payroll suddenly crashes, with no clear timeline for restoration. How would you respond? Could your business operations continue seamlessly? How substantial would the financial impact be? Unfortunately, in June, this exact situation disrupted over 15,000 car dealerships across the US and Canada due to two cyber-attacks targeting CDK Global, a leading software provider in the automotive industry.
These cyber-attacks crippled the sales, financing, and payroll systems of thousands of dealerships, compelling them to either halt operations or resort to manual, pen-and-paper methods. This incident underscores the critical need for small business owners to prioritize robust cybersecurity measures.
What Transpired?
The initial attack struck on the evening of Tuesday, June 18. Upon detection, CDK Global promptly took the entire system offline to investigate. Services were restored the next day, only for a second attack to occur, forcing the system offline once more. It appears the system was reactivated prematurely before all vulnerabilities were addressed, leading to the subsequent breach. Cybersecurity experts estimate it may take weeks for the system to be fully operational again.
While some businesses managed to revert to manual processes, this incident starkly reveals the risks inherent in relying heavily on digital systems. In our increasingly digital world, where most transactions are just a few clicks away, significant disruptions arise when systems fail. Essential business functions, such as closing deals, managing payroll, and interfacing with financial institutions, can grind to a halt. Consequently, until systems are restored, many business operations face delays and potential financial losses. Business owners are acutely aware that a sale isn't complete until the payment clears the bank!
What's Next?
CDK Global has not disclosed the exact cause of the attack, whether due to ongoing investigations or strategic discretion. Their security team must conduct a thorough examination to pinpoint the compromised areas. Large organizations often struggle to fully ascertain the extent of a cyber-attack on the first review, especially when multiple vulnerabilities are involved.
In the interim, businesses must critically assess their systems for sales and operational continuity. Are they prepared to sustain operations if a similar incident occurs in the future?
This event should serve as a wake-up call for all business leaders. Without a robust business recovery and continuity plan, you're exposing your organization to significant risks. If you already have a plan, you must evaluate its quality, frequency of testing, and its capacity to handle large-scale disruptions affecting multiple operational systems. If your current plan falls short, it's imperative to take action.
We offer a FREE consultation to address two crucial aspects:
- Vulnerability Analysis: We will examine your network for potential vulnerabilities, identify where attacks could occur, and provide solutions to mitigate these risks, ensuring you're not the next victim of a cyber-attack.
- Continuity and Recovery Planning: We will help you develop a continuity or recovery plan tailored to your organization. While cybersecurity is essential, no solution is entirely foolproof. Therefore, it's vital to have a plan in place to swiftly recover and continue operations if your network or a critical third-party software, like CDK, is compromised.
To get started, call our office at 866-214-8324 or click here to book your
FREE consult now.
