Imagine if the software your company uses to close deals and pay employees suddenly went down, and you had no idea when it would be fixed. Could you continue doing business? How much money would you lose? This nightmare became a reality for over 15,000 car dealerships across Canada & USA when two cyberattacks hit CDK Global last June.
The Disruption and Its Implications
The cyberattack on CDK Global's software shut down essential sales, financing, and payroll systems for thousands of dealerships. Businesses were forced to either halt operations or revert to the old-fashioned pen-and-paper method. This incident should be a wake-up call for all small business owners, highlighting the importance of robust cybersecurity measures.
The Timeline of Events
The first attack struck on the evening of June 18. CDK Global took immediate action, bringing their entire system offline to investigate. Although the system was back up the next day, a second incident forced them to take it offline again. It appears the system was reactivated too soon, before all compromised areas were addressed, leading to the subsequent breach. Experts predict it could take weeks for the system to be fully operational again.
Digital Dependence and Vulnerabilities
While some businesses managed to switch to manual processes temporarily, this incident highlights the risks of relying heavily on digital systems. In today’s world, where transactions are just a click away, significant issues arise when systems go offline. Critical parts of the business process, such as completing transactions, managing payroll, and interacting with financial institutions, come to a standstill. This means that until systems are restored, many business operations cannot be fully completed, leading to delays and potential financial losses. Business owners know that there is no sale until the check clears the bank!
Moving Forward: Lessons Learned
CDK Global did not disclose the exact cause of the attack. Whether that was intentional or they are still unsure remains to be seen. Their security team will need to meticulously examine every area of the business to determine exactly what was compromised. Large companies often struggle to fully understand the scope of cyberattacks during the initial review, especially if there are multiple vulnerabilities.
Preparing Your Business for Future Threats
This incident should prompt all businesses to evaluate their systems and continuity plans. Can your business continue to operate if a similar attack occurs? If you don’t have a business recovery and continuity plan in place, you’re putting yourself at risk. Even if you do, you must ensure it is robust, regularly tested, and capable of handling large-scale attacks that disable multiple systems. If your plan falls short, it's time to take action.
Our Free Security Risk Assessment
At MYDWARE IT Solutions Inc., we offer a FREE Security Risk Assessment to help you safeguard your business. This assessment will help you identify network vulnerabilities. We’ll analyze your network to pinpoint where attacks could occur and provide solutions to fix these issues, preventing you from becoming the next victim.
Cybersecurity is essential for every business, but no solution is 100% foolproof. You must be prepared to bounce back and continue operations if an attack happens. To get started, contact us, FREE Cybersecurity Risk Assessment now.
