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What Businesses Can Learn from the CDK Cyber Attack: How to Protect Your Company
The CDK cyber attack has caused major disruptions to over 15,000 car dealerships, shutting down operations for weeks, and costing businesses millions. If you think your business isn't at risk, think again—cyberattacks are becoming increasingly common across all industries. This video dives into what businesses can learn from the aftermath of the CDK attack and what steps to take to protect themselves moving forward.
In the wake of the attack, car dealerships have faced massive losses, unable to sell cars, service vehicles, or even process trade-ins. For businesses dependent on technology to run their daily operations, the financial hit can be devastating—especially when the system outage stretches into weeks.
What can businesses do to protect themselves?
Implement Active Monitoring: Even if you're not a tech business, you are still vulnerable. Active monitoring can help detect cyber threats before they escalate. You can either hire a cybersecurity company to monitor your systems or partner with your cyber insurance provider, as many policies include active monitoring services to catch threats early. Most cyberattacks are stealthy, gathering information over time before launching a full-scale assault. By detecting it early, you can avoid major damage.
Understand the Domino Effect of Cyber Attacks: The CDK attack has already led to lawsuits, with customers and employees claiming their data was compromised. If a third-party vendor is affected, it can lead to lawsuits and financial losses, extending far beyond your immediate business. When considering cyber liability insurance, ensure it covers third-party damages, including losses incurred by customers or vendors.
The Importance of Contingency Planning: The likelihood of a cyberattack occurring is higher than other types of business risks, such as fire damage or accidents. Unlike a physical disaster, such as a building fire, which you can bounce back from within days, a cyberattack can leave you out of business for weeks or even permanently if the hacker doesn't release control of your systems. Contingency planning—including having backups and disaster recovery processes—is critical to keeping your business running if your tech systems are compromised.
As business owners, you must plan for these eventualities, even if cyberattacks haven’t affected your industry yet. The cost of cyberattacks isn’t just about the immediate loss of income—it's about the long-term damage to your reputation, the risk of lawsuits, and the potential for your business to be completely shut down.
For more cybersecurity tips, insurance guidance, or to consult with a licensed expert on safeguarding your business, visit our website below. ActualHuman.com offers live one-on-one consultations with professionals in cybersecurity, business insurance, and more to ensure you’re fully protected.
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