Industry experts are warning Canadian businesses to take stock of their cyber vulnerabilities after an attack forced automotive dealerships across North America to trade their digital systems for pen and paper.
CDK, an American company that provides software to manage sales and service, was hit with back-to-back cyberattacks last week. It shut down service as a precaution, a spokesperson said. Thousands of dealerships were forced to find workarounds, and experts are calling it a cautionary tale.
The company has called the attack “a ransom event” though it won’t say if it has paid any money to regain control. The company said work was underway to get services back up and running, but estimated the process would take several days.
“The system basically records any and all transactions at the dealership,” Tim Reuss, CEO of the Canadian Automotive Dealers Association, told CTV News. “The sale of a vehicle, trade-in, a service appointment, part sale, a quote. We have never seen anything at this scale before in our industry.”
“It has been really, really difficult,” said JP Kovac, the dealer principal at Gyro Mazda and Gyro Hyundai in Toronto. Kovac says both of his dealerships use CDK software and have had to revert to recording every transaction and booking by hand.
“Just have patience with the people on the frontline,” he said. “They are doing the best they can in a really challenging time.”
Steve Chipman, the CEO of Birchwood Automotive Group in Manitoba, says 16 of his dealerships were impacted.
“It’s frustrating,” Chipman says. “It’s slowing us down, and we will have to re-do everything,” he said, referring to inputting every transaction into the system once it is restored.
But Chipman is also hopeful this event will make his business stronger and says it reinforces the need to stay on top of cybersecurity.
“Everybody grumbles, ‘Why do I have to have such a long password, why is it going to take so much time,’” he says. “It’s proof again that there are very sophisticated criminals out there holding people for ransom.”
The number of cyberattacks has skyrocketed in the last few years, with corporations, hospitals and municipalities all targeted by criminals who typically aim to steal data and hold it until a ransom is paid.
“Cyber security is not a check box exercise,” says Ritesh Kotak, a cyber expert. “It’s not something you invest in one time and that’s it. These threats are constantly evolving and that’s why it’s important for organizations to really think through where to invest to continually stay up to date.”
Kotak says it’s not enough to just have cyber security. He recommends corporations have plans in place in the event they are hit by an attack.
“Do you have the right business continuity processes in place and how quickly can you get back up and running?” he asks. “Otherwise the consequences are you are going to be completely shut down and not able to do anything.”
According to its website, CDK works with more than “15,000 retail locations” and offers a “three-tiered cybersecurity strategy to prevent, protect and respond to cyberattacks.”
Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.
TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.
The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.
Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.
Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.
TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.
The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.
Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.
A strategic review is often seen by investors as a prelude to a sale by a company.
Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.
Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – National Bank of Canada says it has cleared a key regulatory hurdle in its proposed acquisition of Canadian Western Bank.
The Montreal-based bank says it has received the Competition Bureau’s clearance for the deal.
The transaction still requires approval by the Office of the Superintendent of Financial Institutions and the minister of finance.
Canadian Western shareholders voted to approve the deal earlier this month.
National Bank announced an all-stock deal to buy Canadian Western earlier this year in a proposal that valued the Edmonton-based bank at about $5 billion.
It has said its acquisition of Canadian Western will significantly expand its western footprint and create a stronger national competitor.
This report by The Canadian Press was first published Sept. 26, 2024.
