UnHacked Episode 23 - Summary

The CDK Breach:

  • Occurred on June 19th, 2024
  • Perpetrated by ransomware group "Black Suit"
  • CDK is a SaaS provider serving 15,000+ car dealerships
  • Manages dealerships' inventory, parts, service, accounting, insurance, CRM, and sales operations
  • Complete system outage affected operations across all client dealerships
  • Ransom paid: $25 million
  • Estimated total financial impact: Over $1 billion
  • Recovery took approximately 2 weeks, with dealerships being restored at roughly 50 per hour

Operational Impact on Dealerships:

  • Many dealerships couldn't conduct test drives due to locked key management systems
  • Unable to process sales or complete paperwork
  • Couldn't access inventory systems
  • Sales staff compensation severely affected during prime summer sales season
  • Some dealerships had manual backup processes and continued operations limited

Key Lessons & Takeaways:

1. Incident Response Planning:

  • Most plans focus only on post-breach procedures
  • Need to include business continuity planning
  • Should detail how to maintain operations during an outage
  • Must consider employee compensation during downtime

2. Security Training:

  • Lawsuits allege inadequate security awareness training
  • Training must be mandatory, not optional
  • Documentation of training completion is crucial
  • Need to track and address non-compliance

3. System Access:

  • Principle of least privilege wasn't properly implemented
  • Lateral movement across network suggests excessive access rights
  • Need to restrict access based on actual job requirements

4. Ransom Considerations:

  • Criminals research victim's insurance coverage to set ransom amounts
  • Paying ransom doesn't guarantee immediate recovery
  • Payment might be illegal if group is on terror watch list
  • Paying could make organization a target for future attacks