With a massive loss of approximately $605 million, the CDK cyber attack from a group called BlackSuit made it to every newspaper’s headline on June 18th, 2024.
It severely affected around 15,000 car dealerships across the US and Canada and caused a halt in their business operations.
So, what are the key takeaways from this?
The risk of a cyber attack is always an impending threat. So, whether it is about protecting dealership data or creating a strong cybersecurity protocol, you have to remain vigilant.
A well put-together incident response plan can also go a long way in dealing with a cybersecurity breach.
Now, let us take a look at the four important lessons learnt from the ransomware attack on the third-party service provider, CDK Global LLC.
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1. Supply chains are targeted
It is a well-established fact that cyber attacks are among the top business threats. But what most people aren’t aware of is the fact that these attacks cause a ripple effect!
In the case of the CDK global ransomware attack, multiple car dealerships spread out across the US and Canada were affected severely. It disrupted the activities of businesses in the supply chain.
The company had to shut down its system while investigating the cyber attack. This paralysed the operations of major players like Asbury Automotive Group, AutoNation, Lithia Motors, and Sonic Automotive. This helps us understand that the focal point of a majority of cyber attacks is the supply chain as a target.
Knowing this key motive, supply chain businesses should adopt proactive measures aimed at reducing the risk of data security breaches and protecting dealership data.
2. Third-party Risk Management
When you join hands with third parties so that your business runs smoothly, make sure they follow stringent cybersecurity protocols, the latest threat intelligence and efficient risk management strategies!
The third-party vendor you choose should ideally adhere to the industry standards and ensure cybersecurity practices are carried out effectively. This minimises risk by implementing techniques against rising ransomware attacks.
Data security breaches are also known to travel through interconnected networks. So, to make sure that you are partnered with the right third party, always go through their compliance reports as well as standard certifications.
3. Requirement of Proactive Response Plans
The security breach and CDK’s failure to protect customer data show that the company had not taken any precautionary measures against cyber threats.
Did you know that any weakness in security points is an entry point for hackers?
This is a major reason why proactive response plans are always preferred when it comes to dealing with cyber threats.
While you can always close off any known security vulnerability, it is better to have a robust response plan in case you find yourself at the end of a cyberattack.
This helps the company in dealing with the aftermath of an attack and handling its business operations efficiently.
4. Investment in Cybersecurity
We are living in an era where we are witnessing frequent data breaches.
The attack on CDK sheds light on the fact that it had no effective means to detect, prevent, or even mitigate the attack on the systems. This played to the advantage of the cyber criminals, giving them unlimited access to the private data of the company’s former and present clients.
Hence, investment in robust cybersecurity measures, the more relaxed you can be amidst the whirlwind of data security breaches.
Conclusion
Protection from cyber threats is crucial for any business’s operations to be carried out seamlessly. So, make it a point to introduce cybersecurity products and educate employees on impending threats.
Cybersecurity starts with practising cyberhygiene.
So do not forget to implement solid protocols for protecting dealership data!
