You may have heard the news about another ransomware incident against CDK Global. CDK, if you haven’t heard of them, is the largest provider of integrated technology solutions to the automotive retail industry. Established in 1972 as the Computerized Car Dealer System (CCDS), the company has grown into a global entity with over 28,000 employees worldwide. They currently support over 30,000 car dealer locations in more than 100 countries around the world. Its customers range from small independent dealerships to large multi-location dealer groups in the automotive retail sector.
Possible reasons CDK is targeted by ransomware attacks may include their extensive client base and financial data stored in their systems, making them an attractive target for cybercriminals. It also highlights the importance of implementing strong cybersecurity measures in today’s digital landscape.
CDK offers their clients a Software as a Service (SaaS) solution for their Dealer Management System.
SaaS has many advantages such as it frees dealerships from the burden of managing and maintaining their own infrastructure and IT resources. CDK handles all updates and maintenance, allowing dealerships to concentrate on their core business operations. The SaaS model allows easy scalability for businesses to add or remove features and users as required, without extra hardware or software costs. Another benefit of CDK’s SaaS solution is its ability to deliver a consistent and standardized experience for all users, regardless of their location. Since the system is hosted on CDK’s servers, all dealerships can access the same up-to-date version of the software.
However, SaaS leaves clients to trust that their software provider is handling all the cyber controls in a way that keeps their businesses safe. If they do not do so, the clients are at risk for ransomware attacks.
CDK does offer an on-premises solution for clients who prefer to have their data stored locally.
This gives dealerships more control over their data and allows them to customize their system to fit their specific needs. With an on-premises solution, the dealership is responsible for implementing and maintaining robust cybersecurity measures to safeguard against threats like ransomware attacks. This is added cost that many dealers prefer to have the software vendor handle.
Understanding your options is crucial when collaborating with software providers.
Whether a dealership chooses SaaS or on-premises solutions, prioritizing cybersecurity is essential. Work closely with your software provider, whether it’s CDK or another vendor, to ensure your data and systems remain secure. This involves regularly updating software and implementing robust authentication measures like multi-factor authentication. Educating employees on cybersecurity best practices and setting response protocols for threats are vital for security.
In addition, it is important for dealerships to have a plan in place in case of a cybersecurity breach. This could involve backing up critical data, performing security audits, and training employees to recognize and prevent threats.
In conclusion, the news of CDK Global’s ransomware incident reminds us all to stay vigilant in safeguarding sensitive information. With the increasing reliance on technology in our daily lives, it is crucial to prioritize cybersecurity measures in order to prevent and mitigate potential attacks.
Click here to see a post on cyber security in the cloud – SaaS solutions are hosted there.