Description

AutoCanada recently fell victim to a cyberattack that compromised its internal IT systems, potentially causing business disruption. The attack last Saturday prompted the company to take immediate action to secure its network and protect sensitive data. In response, AutoCanada enlisted the help of outside cybersecurity experts to help prevent and remediate. However, the breach is still under investigation, so it’s unclear if any data has been compromised. With the full scope and impact of the issue yet to be determined, AutoCanada acknowledged that the attack could affect business operations until affected systems are fully restored. The auto industry leader, with more than 4,700 employees, operates 66 franchised dealers in Canada and another 18 in the US. Despite the disruption, AutoCanada is continuing to operate, but it seems likely that there will be more problems as the situation develops. This development coincides with AutoCanada’s release of its second quarter financial results, which highlighted major challenges. The company posted a loss of $33.1 million in the second quarter of 2024, as opposed to a profit of $45.2 million in the same quarter last year. Notably, the recent cyber attack isn’t the company’s first IT outage. AutoCanada was also impacted by an IT outage at CDK Global due to the BlackSuit ransomware attack earlier this year, further complicating its recovery efforts