Bussiness
The massive car dealership cyberattack already has lawsuits flying
A man sued CDK Global after it suffered massive cyberattacks, claiming the auto software company neglected to safeguard his private information.
Yuriy Loginov filed a potential class-action suit in the U.S. District Court in the Northern District of Illinois on Saturday, claiming CDK failed “to implement reasonable and industry standard data security practices to properly secure, safeguard, and adequately destroy Plaintiff’s and Class Members’ sensitive personal identifiable information.”
The company, which provides software for around 15,000 car dealerships in North America, was hit by cyberattacks last Wednesday that forced dealerships to go analog. It has yet to restore its software and said it will take several days to get its products operational again.
While it is still unclear how customer privacy was affected, experts are warning that people who bought a car from a dealership using CDK’s software should act like their data was stolen.
Loginov, who lives in Florida, said in his suit that he believes his private information, including his Social Security number, financial details, credit card numbers, and bank account information, was impacted in the breach.
He also claimed the company should have anticipated the data breach, saying a cyberattack was a “known risk” to CDK Global.
Loginov also alleged that CDK “failed to properly maintain and monitor the computer network and systems that housed” private information. He said he is “now at a current, imminent, and ongoing risk of fraud and identity theft” because of “negligent conduct” from the company.
The complaint said that Loginov has already suffered numerous injuries from the breach, including the financial costs of mitigating risk and protecting his potentially exposed data. He is seeking monetary damages, reimbursement for incurred costs, data monitoring services paid for by CDK Global, and other financial remedies.
CDK Global could not be immediately reached for comment Tuesday morning.