Axia Advisors, LLC’s Post

Remember this cyberattack from a few weeks ago? It has finally ended, but not after affecting vehicle sales numbers and embarrassing dealers. The credit for it ending can probably be given to a $25 million paid (in bitcoin) ransom.   Full article linked in comments below.   #ransom #cyberattack #cardealership 

Are auto dealerships being impacted by the CDK cyberattack in the U.S.?   #CDK #cyberattack #autodealerships Hey everyone! Have you heard about the recent CDK cyberattack that's been causing chaos for auto dealerships across the U.S.? If not, here's what you need to know: - CDK is a major provider of technology solutions for auto dealerships - The cyberattack has resulted in many dealerships being unable to access their systems, causing disruptions in services and sal... Source: https://lnkd.in/gK-YS-pZ #mymetric360

Here's a real world example of how a #thirdpartydatabreach can wreak havoc. CDK Global, a company that provides auto dealerships across the U.S. with #software for managing sales and other services, has been hacked, prompting the company to temporarily shut down most of its systems.  This is preventing about 15000 car dealerships from making #sales. https://lnkd.in/gynv32nm

Nearly 15,000 car dealerships nationwide are still feeling the effects of the CDK Global cyberattack last week. But this cyberattack goes beyond just car dealerships, it also could have an impact on the U.S. economy. Tom Smith, a finance professor at Emory University, said this cyber attack isn't just impacting the ability to buy and sell cars. "It can be incredibly disruptive across the entire supply chain," Smith said. One reason is that a disruption in sales impacts inventory, which then impacts manufacturing. But aside from supply chain, Joe Foudy, a business professor at New York University, said this cyberattack could have a broader impact on the U.S. economy. Specifically, the GDP for the second quarter. Both used and new car sales, all of the things around the industry, lets say it's 4-5% of GDP, so if you lose even 20% of that, you know just temporarily, it's a hit," Foudy said. But he said even if retail sales fall in June, there's a strong chance July will help close that gap and the third quarter GDP if CDK is back online. "It doesn't really hurt the industry over the medium or longer term. The impact or the concern is really just for this quarterly reporting data," said Foudy. @laninfotech @glenbenjamin #laninfotech #becybersmart #becyberfit #besafe LAN Infotech, LLC

The cyberattack on CDK Global has caused chaos for car dealerships nationwide. Here's what you need to know: 1. Dependency on Software: Dealerships rely heavily on CDK's software for everything from inventory management to loan paperwork. When the software went down, so did their operations. 2. Manual Workarounds: With the system offline, dealers like John Hiester had to use spreadsheets and pen-and-paper, slowing down business and increasing the risk of errors. 3. Financial Hit: Sales reps are feeling the pinch. Interrupted deals mean lost commissions and frustrated customers, like Shirley Ng, who went to another dealer rather than wait. 4. Poor Communication: CDK's response has been lackluster. Generic emails and a lack of clear leadership have left dealers frustrated and in the dark. 5. Long-Term Fixes Needed: This incident has many dealers rethinking their software choices to avoid future disruptions. 6. Cybersecurity Wake-Up Call: The attack highlights the need for stronger cybersecurity measures to protect critical systems. The CDK Global cyberattack has exposed serious vulnerabilities in the dealership industry, causing operational headaches and financial losses, and underscoring the need for better cybersecurity and communication.

The car dealership software vendor discovered a cyberattack June 19 and has told customers it will restore systems within days. The fallout from a cyberattack targeting CDK Global, a software provider for more than 15,000 car dealers across North America, is spreading as more customers disclose potential material impacts. At least five publicly traded car dealerships filed disclosures with the Securities and Exchange Commission since Friday. Sonic Automotive and Penske Automotive Group warned investors of potential impacts on Friday. Autonation, Group 1 Automotive and Lithia Motors filed with the SEC Monday. #cyberriskmanagement #thirdpartyriskmanagement #softwaresupplychainsecurity #grc #cyberinsurance

"...15,000 retail locations were relying on the retail technology provider for their dealer management system." Imagine if this kind of breach were to affect your small business. How much loss of productivity, and downtime would your company suffer? How much revenue would be lost? These cyber-criminals are relentless and don't care if you're a business with 5-10 employees or thousands such as the car manufacturers in this report. Everyone is at RISK. And here at Advantage IT Services we are here to help you keep your data safe and prevent breaches. If you're in the Las Vegas, NV area let's have a conversation - https://lnkd.in/g4T4mdTU https://lnkd.in/gzh4dbGj

Yikes! I imagine most around the OEM auto dealership ecosystem have been expecting something like this for a while, as the quasi-duopoly in DMS providers represents an absolute mother lode of valuable data for the bad actors. It also underscores some of the risks associated with "total integration", especially within the context of complex business models - like the ones required to operate dealerships. Massive disruptions from this and sincere compassion for all whose lives are impacted: https://lnkd.in/ebc6XxtX

Car dealerships nationwide got hacked in a BIG WAY last week. Approximately 15,000 car dealerships across the US and Canada have experienced several days without access to essential software systems needed to operate their businesses. Service is offline. Sales have shifted to Paper applications or have stalled entirely Dealerships nationwide are struggling to get back online after a massive cyberattack. "CDK says its core product — called a dealer management system, or DMS — is “the engine” that drives auto retailers’ operations. The use of its software is far-reaching: 2.6% of US gross domestic product is transacted through the company, according to its website. "- Bloomberg The latest morning update is that this unfortunate situation could still last several more days. Need a car? Over the next month or two, I've heard the incentives will be HUGE.. Dealers MUST MOVE INVENTORY. #CDK #cars #cyberattack #update #breakingnews #macro #cardealers #cardealerships

The Federal Trade Commission (#FTC) has just unveiled the Combating Auto Retail Scams (#CARS) Rule, set to roll out on July 30, 2024. This initiative aims to curb deceptive practices in the automotive industry, focusing on eliminating "unexpected and unnecessary fees," according to FTC Chair Lina M. Khan. The CARS Rule addresses long-standing issues in the industry, particularly the notorious bait-and-switch advertising and the imposition of hidden junk fees. These deceptive tactics have often led to inflated costs and frustrating consumer experiences during vehicle purchases. Notably, the rule protects military personnel and their families, which unscrupulous practices have historically targeted. Given the higher burden of auto debt among servicemembers, especially the younger ones, the CARS Rule seeks to alleviate these pressures by promoting transparency and honesty in car sales. #CARSRule #ConsumerProtection #AutomotiveIndustry #AutobodyNews