MDD Forensic Accountants’ Post

𝗕𝗶𝗴 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗯𝗿𝗲𝗮𝗸 𝗳𝗼𝗿 𝗖𝗗𝗞 𝗱𝗲𝗮𝗹𝗲𝗿𝘀... It is still undetermined if customer data has been compromised, but if so, the FTC will allow CDK to file notifications on behalf of affected dealerships (potentially up to 15,000). The FTC Safeguards Rule currently requires dealership to file notifications if either 1) the dealership has been compromised or 2) a third party vendor the dealership works with has been. More updates to come. Mike Rhea Andrew Morgan Field Effect Abraham Garver Chris Loehr #CyberSecurity #AutoIndustry #DataProtection #FTCCompliance #CyberAttack #CDK #Dealerships #RiskManagement https://lnkd.in/giJM4VzR

The business impact of the CDK Global-BlackSuit hack is a great case study on why investing in Security and Ransomware Protection proactively is so so important. Many dealerships resorted to manual operations with pen and paper as a result of the hack; the process to bring those applications back online began today but will take several days (optimstically). North of 15,000 dealerships had operations effected or completely halted altogether as a result. And to boot, CDK reportedly intends to pay the tens of millions of dollars BlackSuit are demanding in ransom. Loss in productivity, inability to record sales, the internal costs of response, the ransom, it will all add up to surely cross the $20M mark by the time it's all said and done - and that's before the potential of fines even emerges. Woof.

Cybersecurity remains a key concern for C-Levels across industries as the mantra goes, "It is not IF, it's WHEN." Recent events like the CDK Global cyberattack highlight the critical need for robust disaster recovery solutions. The multinational corporation faced a major challenge, resulting in a 2-week operational shutdown and a hefty $25M ransom negotiation for recovery. The repercussions of this attack on over 15,000 car dealerships were significant, disrupting essential functions like CRM, payroll, and finance. The timing of the incident in June exacerbated its impact during a crucial revenue period for many businesses. Estimates indicate the aftermath's scale, with AutoNation projecting a $1.50/share quarterly profit reduction due to the cyberattack and potential losses ranging from $600M to $1B for affected dealerships. Moreover, the disruption could lead to around 100K fewer car sales in June, amounting to potential losses of $4.5B considering average sale prices. The full financial impact is yet to be fully realized, with clarity expected upon the disclosure of quarterly results. #Cybersecurity #DataProtection #BusinessContinuity

Sonic Automotive disclosed a material cybersecurity incident update today in an 8-K Item 1.05. Here are the details: 1️⃣ They disclosed that they have restored access to their information systems but they experienced operational impacts through July. 2️⃣ The incident has had a "material impact on the Company's business during and results of operations for the second fiscal quarter ended June 30, 2024 ("Q2")" from lost income and expenses with an estimated impact on GAAP earnings per diluted share for Q2 of $0.64. 3️⃣ They do not believe the incident will have a material impact on the Company's financial condition or on current or future business or results of operations. https://lnkd.in/g2fw447S

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry

Auto Dealerships are at Risk. The CDK cyberattack exposed vulnerabilities in dealerships nationwide. Stay safe by complying with the FTC's Safeguards Rule before an attack strikes! Learn how to protect your business and customer data here. #CyberSecurity #AutoIndustry