Car dealers are forced to rely on pen and paper after cybercriminals strike another corporate target

Maintenance appointment… not a good time to schedule one. About 15K car dealerships across the US and Canada are stuck in the slow lane following a series of cyberattacks last week that knocked key systems offline. The attacks targeted CDK Global, the company behind the software dealers rely on to process everyday transactions like sales, repairs, and parts orders. Dealers have switched to spreadsheets and pen and paper, slowing operations and creating a backlog of transactions that’ll likely have to be painstakingly logged into the system later.

• Deflated air dancers: Dealership chains and operators including AutoNation and Penske have been affected, along with the dealers for automakers like GM, Ford, Volkswagen, and Mercedes-Benz.

• New-car smell: US dealerships — pushing to meet end-of-quarter sales goals — made $1.2T in sales last year.

Do you get déjà vu?... CDK said it was recovering from a “cyber ransom event.” Similar attacks have disrupted numerous industries from hospitality to healthcare. In ransomware attacks, hackers hold digital systems and data (like personal info) hostage until they get paid. Bloomberg reported that CDK was planning to pay its hackers tens of millions of dollars to get back online.

• UnitedHealth, the US’s largest health insurer, confirmed last month that it had paid hackers $22M after ransomware prevented some providers from filling prescriptions.

• MGM, meanwhile, reportedly decided not to pay hackers who took its hotels and casinos mostly offline for about nine days last year. MGM said the disruptions cost it $100M+.