Hackers Behind US Car Dealership Attack Demand Millions in Ransom

A group of hackers has claimed responsibility for a cyberattack on CDK's software systems, demanding millions of dollars in ransom to end the hack that disrupted operations for auto dealers across the United States, as reported by Bloomberg News on Friday.

According to sources familiar with the matter cited in the report, the hackers are believed to be based in eastern Europe. CDK, a provider of software to car dealerships, reportedly planned to pay the ransom, though the company did not immediately respond to Reuters' request for comment.

The impact of the attack was felt by major US auto retailers Sonic Automotive and Penske Automotive, both of which reported operational disruptions due to CDK's third consecutive day of outage.

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Ford acknowledged the industrywide system outage affecting dealers using CDK in an emailed statement, noting that alternative processes were in place to support Ford and Lincoln customers.

Sonic Automotive stated that while its dealerships remained open, the outage had a negative impact on operations, though the financial implications were yet to be determined.

Penske Automotive's Premier Truck Group, which relies on CDK's dealer management system, implemented business continuity plans to maintain operations through manual or alternate processes. Penske noted that its automotive dealership business, which does not use CDK software, was unaffected.

Kia America informed Reuters that it was collaborating with affected dealers to mitigate the outage's impact and resume normal business activities.

CDK, which boasts partnerships with over 15,000 retail locations across North America according to its website, continues to address the fallout from the cyberattack as investigations into the incident proceed.