Experts Warn Motor Traders Of Cyber Security Dangers
In the wake of last month’s cyber-attacks, which targeted US motor trade dealers, with software giant CDK Global, the UK motor trade industry should urgently review their technology security protocols.
CDK Global fell victim to two cyber incidents that disrupted operations across the country. As a key provider of dealer management systems (DMS), CDK Global was forced to shut down its applications, impacting thousands of dealerships and original equipment manufacturers.
After the second attack, CDK Global halted its systems to assess the situation and provided updates to affected dealers. A week later, a small test group of dealers regained access to the DMS, with the promise that other dealers would be brought online once the system’s security was confirmed. Reports suggested that a $25 million ransom was paid to the hackers responsible, according to sources cited by CNN.
Cyber Criminals Target Motor Traders.
This high-profile incident underscores the growing threat of motor trade cybercrime, which has risen globally. UK car dealer groups have also faced cyber-attacks, though not all cases are publicly reported.
The UK government’s ‘Cyber Security Breaches Survey 2024’ highlighted the severity of the issue across all industries. Over half (50%) of UK businesses reported experiencing a cyber security breach or attack in the past 12 months, rising to 70% for medium-sized businesses and over 70% for large businesses. Phishing remains the most common form of attack, affecting nearly 85% of businesses, followed by impersonation in emails or online and malware attacks.
Cybersecurity experts have offered practical advice so the motor trade industry can bolster its security:
1. Multi-Layered Cybersecurity
Dealers should establish multiple layers of cybersecurity measures. This includes protecting all forms of identity—whether human, machine, or AI—through robust authentication methods. Multi-factor authentication (MFA) is a key tool that adds an extra layer of security, making it harder for attackers to gain unauthorised access.
2. Invest in Employee Training
Cybersecurity isn’t just about technology—it’s about people. Regular training and awareness programs help employees recognise and avoid phishing attempts, social engineering tactics, and other common cyber threats.
3. Assess Third-Party Vendor Security Practices
A dealership’s cybersecurity is only as strong as the weakest link in your supply chain. Thoroughly assess the cybersecurity practices of third-party vendors and partners to ensure they adhere to strict security standards. Ensure they have contingency plans to mitigate any potential risks that could impact your operations.
4. Regular Security Audits and System Updates
Regular security audits are essential to identify vulnerabilities that cybercriminals could exploit. Ensure that all systems and software are updated with the latest security patches. This proactive approach helps to close any security gaps and reduces the likelihood of a successful attack.
Cybercrime is an ever-evolving threat, and no insurance policy or single solution can guarantee complete protection. However, these steps will strengthen security and reduce exposure as cyber threats become even more sophisticated.
Stay vigilant and proactive to help protect your business from potential harm.
