CDK Global CEO pledges financial compensation for customer losses from cyberattacks.
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CDK Global, a company which helps manage payments for auto dealers across North America, was the target of a major breach on June 19, resulting in a widespread blackout of the software that the company provides to nearly 15,000 dealerships. CDK released a memo calling the cyberattack that took down its software platform for its auto dealership clients "cyber ransom event." According to an estimate by Anderson Economic Group, CDK’s system collapse could result in approximately $944 million in direct losses due to business interruptions for affected car dealers. Business owners - are you comfortable in your company's ability to resume operations in the event of an attack? Do you have business continuity and data recovery (BCDR)? If not, your business is severely at risk. Our team is here to help you understand BCDR and the peace of mind it offers.
CDK Global calls cyberattack that crippled its software platform a "ransom event"
cbsnews.com
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$300 million. That's the rumored ransom that CDK paid to criminals to get their systems unencrypted. Sounds like the criminals posed as vendors to CDK, then used that status to get access into their systems. Still unknown which vendor, or which specific attack vector they used - or how long they had access before they pulled the trigger. Since backups are corrupted, it probably was a long time. Dealerships that use one of the other systems - Reynolds & Reynolds, Dealertrack, etc. might want to make sure they have a way to do business if that system goes down, because if the criminals got into one, they probably got into others. ALSO - There are a bunch of people who want to buy a car but can't. Since car sales is one of the key metrics tracked for GDP, and it could be weeks or months until the compounding effects of this rebound, this will impact overall GDP stats which will in turn make the stock market take a hit.
CDK Global outage caused by BlackSuit ransomware attack
bleepingcomputer.com
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Expect long delays if you are trying to service your vehicle or trying to purchase a new one at a US or Canadian based auto dealership as they are undergoing multiple cyber incidents over the past few days since June 18 and expect to be down for several more days. CDK Global is a dealer management system (DMS) and essentially runs everything at dealerships including sales, service, inventory, ordering, CRM, customer experience, finance, registrations, and payroll. They are a major SaaS-based DMS to over 15,000 dealerships and used at least half of all dealerships in the US. Not only are they being impacted by a major ongoing multi-day cyber incident (likely ransomware/extortion) they have been hit a second time this week essentially shutting down all operations again at the company as well as all involved dealerships and associated supply-chain forcing everyone to switch to old paper-based workflows where possible. Data and PII spillage is highly likely if you have worked, purchased, or had a vehicle recently serviced at a dealership using CDK. The unknown threat actor(s) have been further observed conducting phishing based attacks against various dealerships impersonating CDK to make things even more interesting. The only known entry point at this time points to a 3rd party provider and further details or any actional insights are expected. Coincidentally several reports shows CDK is also a SnowFlake customer which makes it a possible attack vector in addition to the usual common methods. Expect long delays at auto dealerships for the upcoming days. Stay safe!!! -- update from various chatter and early reports: the incident is related to ransomware, threat actors likely from typical eastern European region, and CDK is in the process of paying the ransomware in order to restore operations. -- update 2: a report says the BlackSuit ransomware gang is attributed to this CDK Global incident. The gang launched in May 2023 and is believed to be a successor to the Conti cybercrime syndicate. There still remains no official statement or when operations are expected to return to normal by CDK Global as of 10:00pm EST Saturday, June 22. The SEC form 8-K
0001043509 FALSE 0001043509 2024-06-19 2024-06-19
sec.gov
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Business owners - are you comfortable in your company's ability to resume operations in the event of an attack? Do you have business continuity and data recovery (BCDR)? If not, your business is severely at risk. Reach out and I can help you understand BCDR!
CDK Global, a company which helps manage payments for auto dealers across North America, was the target of a major breach on June 19, resulting in a widespread blackout of the software that the company provides to nearly 15,000 dealerships. CDK released a memo calling the cyberattack that took down its software platform for its auto dealership clients "cyber ransom event." According to an estimate by Anderson Economic Group, CDK’s system collapse could result in approximately $944 million in direct losses due to business interruptions for affected car dealers. Business owners - are you comfortable in your company's ability to resume operations in the event of an attack? Do you have business continuity and data recovery (BCDR)? If not, your business is severely at risk. Our team is here to help you understand BCDR and the peace of mind it offers.
CDK Global calls cyberattack that crippled its software platform a "ransom event"
cbsnews.com
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A hack can devastate an organization's bottom line 💸📉 #CyberSecurity. From direct financial losses 💰 and operational disruptions 🚫⚙️ to long-lasting reputational damage 📉🏢, the impacts are far-reaching #BusinessRisk. Legal consequences 👨⚖️ and regulatory fines 💸 add to the financial burden #Compliance. Intellectual property theft 🕵️♂️💡 can erode competitive advantage #IP. The aftermath often includes increased cybersecurity spending 🛡️💻 and higher insurance costs 📈💼 #RiskManagement. Customer trust erosion 🤝❌ and negative publicity 📰😟 can lead to long-term revenue decline #BrandReputation. Ultimately, a single hack can trigger a domino effect 🎲 of financial repercussions that impact an organization for years #CyberThreat.
AutoNation warns CDK Global hack to hit second quarter earnings
finance.yahoo.com
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Eight Steps to Protect Your Dealership Against Cyberattacks and Meet FTC Requirements.
Deadline Extended for Dealerships to Comply with the Revised Safeguards Rule
eidebailly.com
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Cyber Governance, Strategy, & Advisory Chairman & CEO for Boards & C-Suites | CEO of the Year | xUBS Tech & Defense IBanker | Wharton MBA | Harvard MPA | Forbes Contributor | Published Author | CyberBoardCast™ Host
Is your financial institution prepared for the SEC’s new customer breach notification rules? Join me on #CyberBoardCast™ Ep223 as we explore the specific implications of the SEC’s enhanced Regulation S-P amendments for the financial services industry and what Boards must do to comply. Ep223: Financial Services Under SEC’s New Customer Breach Notification Rules: What Boards Must Know 🌐 Highlights: ✅ Incident Response Programs: Develop and maintain robust incident response programs capable of detecting, responding to, and recovering from unauthorized access or use of customer information. ✅ Timely Notification: Ensure protocols are in place to notify affected individuals within 30 days of a data breach. This requires swift action and transparent communication. ✅ Service Provider Oversight: Regularly review and monitor third-party service providers to ensure they comply with robust cybersecurity standards. 🔑 Best Practices: · Regular Training: Conduct training sessions for employees, executives, and Board Directors on the latest threats and regulatory requirements. · Advanced Monitoring Tools: Implement advanced monitoring tools to detect breaches quickly and accurately. · Frequent Audits: Perform regular audits of cybersecurity policies and procedures to identify and address gaps. Boards must lead these efforts to ensure cybersecurity remains at the forefront of their strategy. 👉 Stay Ahead of Cyber Threats: · Certify your Directors and Executives as Cyber-Ready Fiduciaries™ with Cyber Nation Central’s Executive Cybersecurity Blueprint™ Protocol Certification. Visit CyberNationCentral.com to schedule a consultation. · On Tomorrow’s Episode: We’ll discuss the implications of these amendments for other industries. · Subscribe to the CyberBoardCast™ Weekly Executive Briefing at https://lnkd.in/eSDNyeNK. Watch and Listen to CyberBoardCast™ Daily: 🎥 8AM ET on Spotify (https://lnkd.in/gu3439Rg), YouTube (https://lnkd.in/g_gaufFP), and LinkedIn (https://lnkd.in/gtihFf6Q) 🎧 Apple Podcasts, Audible, Amazon Music, or your preferred podcast platform shortly thereafter. #CustomerBreachNotification #FinancialServices #IncidentResponse #CyberOversight #BoardTraining #CyberRiskManagement #CybersecurityGovernance #RegulatoryCompliance #CyberNationCentral #CyberStrategy #BoardCyberReadiness #CybersecurityProtocol #CyberGovernance #CyberSecurity #BoardCybersecurityStrategy #CSuiteCybersecurityStrategy #CorporateGovernance #BoardroomCulture #CSuiteCulture #CyberDefense #CultureOfCybersecurity #BoardTraining #CSuiteTraining #CEO #CSuite #BoardChair #CISO #ExecutiveCybersecurityBlueprint #BoardCybersecurity #BoardEducation #ExecutiveEducation #Management #CyberDefense #CyberRoles #CNCDO #CyberBoardCast #AndrzejCetnarski https://lnkd.in/es4UXbqc
Ep223: Financial Services Under SEC’s New Customer Breach Notification Rules: What Boards Must Know (2024.05.25)
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#IBTV: Experts from Cyber Data-Risk Managers , Clear Insurance, and WTW share valuable tips for brokers to manage increasing customer expectations effectively. Discover insights and strategies in this Power Panel discussion. https://hubs.la/Q02CTsg80
Customer demands are increasing - how can brokers deal with them?
insurancebusinessmag.com
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Blurred lines: Securing the physical and digital sides of business
Blurred lines: Securing the physical and digital sides of business - IT Security Guru
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As a new week approaches and many dealerships have been affected by the CDK data breach/hack, perspective & attitude are so important right now. Sure it sucks & is extremely inconvenient, but it WILL all work out. Take care of the customer the best you can! They don't understand nor do they really care what the dealership or you are going through. "Our computers are down at the moment and things may take a little longer, but no worries we're gonna take great care of you." Also, try to be kind to co-workers and the CDK folks you may deal with. Your co-workers are going through the same crap. Can you imagine what the CDK people are dealing with? Your dealership is only 1 of 15,000! Take a breath, keep it all in perspective, and move forward.
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