"An enormous disruption:" Iowa auto dealers face ransomware attack
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Sales at dozens of Iowa auto dealerships have been paralyzed for almost a week because of a widespread ransomware attack.
Why it matters: Auto sales employ tens of thousands of Iowans and contribute billions of dollars in sales to the state's economy each year.
- It's "an enormous disruption" with total loss estimates still unknown, Iowa Automobile Dealers Association president Bruce Anderson tells Axios.
Catch up fast: Recently hacked CDK Global provides a software platform used by roughly 15,000 car dealerships in North America, including about more than 60 in Iowa.
- The June 19 attack shutdown systems that process sales and auto repairs, forcing many dealerships to revert to a pen and paper process.
Threat level: An Eastern European cybercrime group that claims it is behind the attack is demanding tens of millions of dollars in ransom. CDK plans to make a payment, Bloomberg reported Friday.
- CDK acknowledged the attack to clients Saturday, saying it has started restoring systems and expects to bring major applications back online in several days, CBS News reported Monday.
State of play: As of Monday, many dealerships were still experiencing problems and resorting to alternative software providers, Anderson said.
- There's no indication that customer identifications were compromised in the attack, he said.
What they're saying: It's the biggest disruption in at least 24 years for Willis Automotive, CEO Jason Willis told KCCI.
- Because of ongoing phishing scams, Shottenkirk Chevrolet workers have been instructed not to answer questions on the phone about the attack, an employee told Axios Monday.
- Bob Brown Chevrolet and Toyota of Des Moines did not respond to requests for comment.
What's next: Once their systems are restored, dealerships will likely seek compensation from their business disruption insurance providers, Anderson said.
The bottom line: If you're buying a vehicle, be patient.
- Sales are ongoing, but the process may take longer, Anderson said.