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CDK Global Cyber Attack – What it means for Denver Businesses

The cyber attack on CDK Global has sent shockwaves through the tech industry, highlighting critical vulnerabilities in data security practices. For Denver businesses, this incident serves as a stark reminder of the importance of robust cybersecurity measures. As a leading managed service provider in Denver, we aim to break down what went wrong in the CDK breach, how data was exposed, and what local businesses can do to safeguard their data.

Who is CDK Global?

CDK Global is a prominent data provider whose software solutions are integral to the automotive industry. Their products are widely used by car dealerships to manage various operations, including records, inventory, customer relations, and scheduling. With a vast client base and handling sensitive data for over 15,000 dealerships, CDK Global is a critical player in the automotive sector.

What Happened in the CDK Cyber Attack?

On June 19, CDK Global experienced a significant cyber attack that forced the company to shut down most of its systems to contain the breach. This attack disrupted dealership operations across the country, highlighting the far-reaching impact of such cyber incidents. The breach involved multiple layers of security failures:

  1. Inadequate Security Protocols: CDK’s existing security protocols were insufficient to detect and prevent the initial breach. This included outdated software and unpatched vulnerabilities that hackers exploited.
  2. Weak Access Controls: Hackers were able to gain unauthorized access due to weak access control measures. This allowed them to move laterally within the network and escalate their privileges, accessing sensitive data.
  3. Delayed Detection and Response: One of the most critical failures was the delay in detecting the breach. The attackers had significant dwell time within CDK’s systems, allowing them to exfiltrate vast amounts of data before being detected.

As of the release of this blog, CDK Global is still not operational, and doesn’t anticipate to be able to return services to their dealership customers until at least June 30th. The devasting blow to business goes far beyond dollars lost in the initial attack. The shockwaves across our economy will be felt for years to come.

How Data Was Exposed

The attackers employed a combination of tactics to infiltrate CDK’s network and extract data:

  • Phishing Attacks: Initial access was likely gained through phishing emails, tricking employees into revealing login credentials.
  • Exploiting Vulnerabilities: Once inside, the attackers leveraged unpatched software vulnerabilities to deepen their access.
  • Data Exfiltration: Using advanced techniques, the attackers systematically exfiltrated data, including personal information, financial records, and business documents.

Implications for Denver Businesses

The CDK breach underscores the ever-present threat of cyber attacks and the devastating impact they can have on businesses. For local Denver businesses, this incident highlights several critical lessons:

  • Data Sensitivity: Every business, regardless of size, handles sensitive data that can be targeted by cybercriminals. This includes customer information, financial data, and proprietary business records.
  • Comprehensive Security Measures: Robust cybersecurity is not optional but essential. This involves implementing advanced security protocols, regular software updates, and rigorous access controls.
  • Proactive Monitoring and Response: Early detection of breaches can significantly mitigate damage. Businesses should invest in continuous network monitoring and have a clear incident response plan.

The Role of Managed Service Providers

Partnering with a managed service provider (MSP) can be a game-changer for local businesses. Here’s how an MSP can help:

  • Expertise and Resources: MSPs bring specialized knowledge and resources that many businesses lack in-house. This includes state-of-the-art cybersecurity tools and practices.
  • Continuous Monitoring: MSPs provide 24/7 monitoring, ensuring that any suspicious activity is detected and addressed promptly.
  • Regular Updates and Patches: Keeping software up-to-date is crucial. MSPs ensure that all systems are regularly updated and patched to close security gaps.
  • Comprehensive Security Strategies: MSPs develop and implement comprehensive security strategies tailored to the specific needs of your business, ensuring robust protection against cyber threats.

The cyber attack on CDK Global is a wake-up call for businesses everywhere, particularly those in Denver, and even more so for the auto industry. Ensuring data protection is not just a technical issue but a business imperative. By partnering with a local managed service provider, Denver businesses can fortify their defenses, safeguard their data, and maintain the trust of their customers. Don’t wait for a breach to take action—invest in comprehensive cybersecurity today.