Imagine if the software your organization relies on to finalize deals and process payroll suddenly went offline, with no clear timeline for its restoration. How would you respond? Could your business continue to operate? What kind of financial losses would you face? This was the harsh reality for over 15,000 car dealerships in the US and Canada in June when two cyber-attacks targeted the widely-used industry software provider, CDK Global.
These cyber-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 small business owners.
What Happened?
The first attack struck on the evening of Tuesday, June 18. Upon detection, CDK Global acted swiftly, taking the entire system offline to investigate. The system was restored the following day, only to be hit by a second attack, prompting another shutdown. It appears the system may have been brought back online too soon, before all vulnerabilities were thoroughly addressed, leading to the second breach. Cybersecurity experts suggest it could take weeks for the system to be fully operational again.
While some businesses managed to switch to manual processes, this incident highlights the inherent risks of relying heavily on digital systems. In our increasingly digital world, where most transactions are completed with a few clicks, significant disruptions occur when systems fail. Critical business functions, such as processing transactions, managing payroll, and interacting with financial institutions, can come to a halt. This means that 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.
So, What's Next?
CDK Global has not disclosed the exact cause of the attacks. Whether this is due to intentional non-disclosure or ongoing uncertainty remains unclear. Their security team must meticulously examine every aspect of the business to identify what was compromised. Large companies often struggle to fully understand the details of a cyber-attack after an initial review, especially if multiple vulnerabilities exist.
In the meantime, businesses must critically evaluate their own systems for sales and operational continuity. Are they prepared to continue operations if a similar incident occurs?
This incident should serve as a wake-up call for all business leaders. If you lack a business recovery and continuity plan, you're exposing yourself to significant risk. Even if you have a plan, you must ensure it is high-quality, frequently 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.
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