CDK Global reportedly pays $25m cyber ransom which cost dealerships dear

US software house CDK Global is reported to have paid out a $25 million ransom to hackers following a devastating June 19 cyber attack which likely cost its US dealership clients $600m in direct losses.

CDK’s software supports nearly 15,000 dealerships in North America by managing vehicle acquisitions, sales, financing, insurance, repairs, and maintenance.

Keyloop, the UK's dominant DMS provider, is not part of CDK Global. CDK sold off its international business, which rebranded as Keyloop in 2021.

CDK initially described the incident as a “cyber incident” in media statements although reportedly referred to it as a “cyber ransom event” with clients.

According to CNN, around 387 bitcoins worth around $25m were transferred on June 21 to a cryptocurrency account controlled by hackers associated with a ransomware called BlackSuit, detected on the basis of tracked blockchain data that records cryptocurrency transactions.