Car dealerships across the country are stuck in neutral after a series of high-tech attacks.
Driving the news: Hundreds of dealerships across Canada are still reeling from the effects of cyberattacks last week that took down their systems. The attacks targeted CDK Global, a software provider used by over 15,000 dealerships across North America for day-to-day operations.
- The attacks were reportedly carried out by the ransomware gang BlackSuit, which is demanding tens of millions to restore CDK’s capabilities, a fee CDK is willing to pay.
- Tim Reuss, CEO of the Canadian Automobile Dealers Association, told CTV News that the industry had never experienced a disruption at this scale before.
Why it matters: Some dealerships have reverted to selling cars like it’s the Stone Age, as employees perform tasks like recording sales, logging appointments, and taking inventory by hand. Maybe the old-timey experience will inspire them to bring back tacky plaid blazers?
Big picture: Debilitating attacks like this are now an everyday occurrence. Between April 2023 and March 2024, 4,893 ransomware attacks were reported globally — an 81% year-over-year increase — with everything from big business to local infrastructure targeted.—QH