Car dealerships in the US and Canada are now demanding better compensation from digital service provider CDK Global following the massive cyberattack last month that halted many dealerships' digital operations.
First reported by Automotive News, several affected car dealers are demanding three months' worth of compensation from CDK Global to recover from the service outage that lasted several days.
(Photo : Scott Olson/Getty Images)
Many businesses claimed that the outage made a significant impact on their operations as some had to resort to pen-and-paper or third-party software vendors to curb losses, an alternative many dealers argued still cost them a lot.
CDK Cyberattack Delays NA Car Industry Growth for Months
Experts earlier projected that the industry would need months to recover from the outage. This is in addition to other expenses that may arise from protecting against future cyberattack campaigns that may have been leaked from the data breach.
CDK, so far, has reportedly only given affected auto dealers one month's worth of compensation in addition to restoring their digital services to over 15,000 impacted locations before July 3.
CDK claimed that most businesses they have personally spoken with "have been very grateful and appreciative of the compensation," although it did not detail if new agreements have been reached with the complainants.
Also Read: Over 15,000 Car Dealers Suffer Computer Outages in US, Canada
Lawsuits Hound CDK Global Over Ransomware Attack
Aside from compensation demands, several lawsuits are also hounding CDK as several car dealer employees seek liability from the digital service provider for allowing a data breach of such scale.
As of July 3, the company faces eight class-action lawsuits for failing to protect its customers' management system and possibly exposing thousands of people's private data to hackers.
This is in addition to complaints about CDK's late response to resolve its underlying security issues after the data system was hacked again just days after the first cyberattack was reported.
Earlier reports have already indicated that the hackers were able to access people's social security numbers and other personal information.
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