In today’s digital landscape, the threat of cyberattacks is a constant concern, impacting over 72% of businesses worldwide in 2023. This summer a significant cyberattack unfolded, affecting one of our clients and underscoring the critical role that cyber insurance plays in navigating these challenges.
How the Cyberattack Disrupted Business Operations
On June 19, 2024, hackers launched a cyberattack against CDK Global, which provides cloud-based software solutions for nearly 15,000 auto dealerships across North America. This ransomware attack disrupted dealership operations, including acquiring, selling, financing, insuring, repairing, and maintaining vehicles. Our client, who relies on CDK Global’s functioning software, was concerned about the impact of this cyberattack on their daily operations.
After the attack, many dealerships reverted to pen and paper, created Excel spreadsheets, or used alternative local software. Some even dug out old contracts, redacting customer information to create editable PDFs on the fly. This scramble caused significant delays and operational challenges, affecting the dealerships and their customers. Our client manages many dealerships in the Midwest, making the impact on their daily operations challenging and widespread.
Our Rapid Response to the Incident
As news of the cyberattack spread, concerns about potential business interruptions began circulating. Fortunately, our client had cyber insurance in place, and they were quickly alerted by their cyber liability insurance carrier, Corvus, who advised immediate action – disconnecting the Always On VPN access to mitigate further risks.
Within 12 hours, our client reported a potential business interruption claim to Corvus. While the carrier was overwhelmed by multiple claims, within days, our Plexus claims advocate was able to set up a collaborative call with our client, the Cyber Liability carrier and Plexus team members.
Shortly after, Corvus engaged a forensic accounting firm to collaborate with our client to assess potential losses due to the business interruption. This investigation was critical because CDK’s systems remained down for two weeks.
We Help Protect You
While the cyberattack didn’t target our client directly, the benefits of their robust cyber insurance policy became abundantly clear. Our client received immediate support from their insurance carrier and access to various services included in their policy. This support not only helped mitigate the impact of the attack but also provided peace of mind during a chaotic time.
Our client’s story is a powerful reminder that cyber insurance is critical for every business. Our client found reassurance in knowing their Plexus client team and carrier was actively engaged from the start, helping them navigate the unknown.
Is your business covered if a cyberattack occurs? Contact Plexus at 888.529.8834 or info@plexusgroupe.com to discuss your Cyber Insurance coverage.
About The Plexus Groupe
The Plexus Groupe is a Top 100 independent insurance advisory firm, backed by our knowledgeable team, cutting-edge resources, and a global network of partnerships. We specialize in comprehensive services across Business Insurance, Employee Benefits, Retirement Services, Benefit Administration Technology, Private Client, and Mergers & Acquisitions.
As a proud partner of Assurex Global – the world’s largest association of privately held insurance brokers – our risk management professionals provide tailored solutions to meet the diverse needs of our clients worldwide.
Headquartered in Deer Park, III., with additional offices across the U.S., The Plexus Groupe is committed to delivering personalized services, innovative solutions, and strategic insights that empower clients to thrive in today’s complex environment. Visit www.plexusgroupe.com to learn more.
Sources:
-https://www.techtarget.com/whatis/feature/The-CDK-Global-outage-Explaining-how-it-happened
-https://www.usatoday.com/story/money/2024/07/03/cdk-global-cyberattack-timeline/74292877007/
-https://www.cbtnews.com/cdk-global-confirms-no-data-breach-in-june-cyberattacks/
-https://www.statista.com/statistics/204457/businesses-ransomware-attack-rate/#:~:text=Businesses%20worldwide%20affected%20by%20ransomware%202018%2D2023&text=As%20of%202023%2C%20over%2072,had%20been%20victimized%20by%20ransomware