Auto Parts Leader LKQ Targeted in Major Cyberattack

 

LKQ Corporation Reports Cyberattack on Canadian Business Unit

LKQ Corporation, a leading US-based provider of auto parts, disclosed to the SEC late last week that it experienced a cyberattack that disrupted operations at one of its Canadian business units. The incident highlights the ongoing cybersecurity challenges faced by global enterprises.

The Scope of LKQ’s Operations

As a major supplier of parts for repairing and accessorizing consumer vehicles, LKQ operates a vast network comprising 1,600 locations across over two dozen countries and employs 45,000 individuals worldwide. This extensive footprint underscores the potential ripple effects a cyberattack could have on its operations and customers.

Details of the Cyber Incident

In an 8-K filing submitted to the SEC, LKQ reported detecting unauthorized access to the IT systems of its Canadian business unit on November 13. The attack resulted in operational disruptions that persisted for several weeks. However, the company confirmed that the affected unit has since resumed operating near full capacity, and the cybersecurity threat appears to have been contained.

Financial and Operational Impacts

Despite the disruptions, LKQ does not anticipate the incident will have a material impact on its financial performance for the fiscal year. “As of the date of this filing, we believe the impacts of the cyber incident are not, and are not reasonably likely to be, material to our financial condition or results of operations for the fiscal year,” the company stated.

Additionally, LKQ plans to offset the financial consequences of the cyberattack by filing claims with its cybersecurity insurers. “We will be seeking reimbursement of costs, expenses, and losses stemming from the cyber incident by submitting claims to our cybersecurity insurers,” the company noted.

Speculation About the Attack’s Nature

While no specific threat actors or ransomware groups have claimed responsibility for the attack, LKQ’s filing does not rule out the possibility of ransomware involvement. Companies that pay ransoms often avoid appearing on leak sites maintained by ransomware gangs. This leaves open the question of whether sensitive data was compromised or if the attack primarily aimed to disrupt operations.