CDK hack upends U.S. auto industry, sending dealers back to paper forms

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Thousands of car dealers are reeling from cyber attacks that targeted software used for conducting business. The incidents are slowing sales and raising new cybersecurity concerns. NBC News’ Jesse Kirsch reports.

U.S. auto dealers grappled with an ongoing cyber attack-led software outage on Monday, with some reverting to manual paperwork as car industry technology provider CDK worked to restore systems used by more than 15,000 retail locations. The outage impacting CDK’s dealer management system, used to complete deals, track store profitability and monitor employee compensation, has “plunged the auto retail industry into disarray”, JPMorgan analysts said last week.

Seavitt expects the vehicles to be transferred this week after his team developed other ways to complete the necessary paperwork. CDK has told him that services will likely be down until mid-week. “We don’t want to see this thing drag on,” Seavitt said. CDK, which reported the outage last week, said on Monday it had begun the restoration process, reiterating that it will take several days to complete.

 

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