Ransom Event Impacting 15,000 Auto Dealerships Resolved

This article was last updated on 7.16.2024.  

On June 19th, CDK Global’s dealer management system, used by about 15,000 dealerships in the U.S. and Canada, was shut down so the company could investigate a cyber incident. They resolved a “ransom event” and restored access to their software solutions over the July 4th holiday. Below is a recap of the cyber attack’s impact on the auto industry and consumers—including what car buyers should know moving forward.  

During the cyber attack

According to the FBI, ransomware is malicious software that prevents a target from accessing their files, systems, or networks. In CDK’s case, the effects of this ransom event were substantial. Dealerships had to revert to traditional pen-and-paper methods to complete certain tasks they depended on CDK’s technology to streamline. These business interruptions resulted in fewer sales. In fact, J.D. Power and GlobalData estimate there was a 7.2% decline in total new-vehicle sales in June 2024 compared to the same period last year.¹ Dealers took an estimated loss of $944 million.² 

Because retail sales play a significant role in the U.S. economy, a drop in auto sales can influence the GDP growth rate.³ Thankfully, dealerships are expected to make up for their losses in July and the remainder of the third quarter. 

The challenges the cyber attack posed to dealerships had a negative impact on consumers. With CDK’s system offline, dealerships couldn’t access the software they used to schedule appointments, check their vehicle selection, and track their inventory of parts for service appointments. These snags created longer waits for car buying and servicing alike. 

After the cyber attack

Affected dealerships may be playing catch up with data entry, since they had to use pen-and-paper methods while they waited for CDK to resolve the ransom event. This may take weeks or months in some cases for teams to enter and double check their data, taking time away from customers who want to purchase a car or service their vehicle. 

Currently, there are no confirmed security risks to consumers. If you purchased a car in recent years and want to be extra safe, consider temporarily freezing your credit at the three major credit bureaus: Equifax®, Experian™, and TransUnion®. This ensures fraudsters are unable to open any new accounts in your name. 

Data breaches are a different story. In these incidents, bad actors gain access to sensitive information. There have been 20 major data breaches so far in 2024,⁴ including those impacting AT&T and Ticketmaster. When your information is compromised by a data breach it’s important to take action. First, you should change your password on any affected accounts. If there are saved payment details on those accounts, such as credit card information, you should review your transaction history so you can quickly report unauthorized activity to your bank or credit union. 

As the top auto lender in the Tri-State, we are partnered with many local dealerships. While the full impact of this cyber security event is still not known, we will monitor the situation and bring you the latest details as we learn more. As always, if you feel you are the victim of fraud – whether related to a cyber attack or otherwise – please contact us immediately so that we can secure your accounts. For more information on fraud and scams, visit our Money Minutes blog, subscribe to our eNewsletter, or visit our Security Center.