The Importance of Automotive Dealership Data Security
As the world has moved towards living online, so have automotive dealership data operations. Everything from inventory to financial records and customer data all live online in one location or another. Many customers just assume that their data is secure in dealership hands. However, recent ransomware and other cybersecurity attacks prove that this is not the case. If dealership software can be attacked, so too can individual dealerships who handle highly sensitive information on behalf of customers.
Cybersecurity measures are a must for dealerships to safeguard customer information and ensure compliance with ever-increasing data security regulations. Just one cybersecurity breach can have a serious impact and cause long-term damage.
How the FTC Impacts Automotive Dealership Data
The Federal Trade Commission (FTC) requires businesses to comply with strict regulations to protect customer information, and dealerships are no exception. Compliance is not just necessary, it also provides a solid framework to protect your customers, staff, and business from cybersecurity attacks.
Key FTC Requirements
- Document Risks and Plan Ahead
Conduct a comprehensive risk assessment procedure, identify risks, and create a written plan to minimize those risks. Following set procedures is the easiest way to minimize those risks and avoid breaches. Dealerships should also plan a response in case a cybersecurity incident does occur so that the response is quick and efficient. - Encrypt Your Data
Implement encryption for all stored sensitive information, both in transit and at rest. Customer data, such as financial information and social security numbers, are extremely valuable sensitive information and must be protected. - Monitor Accessibility
Dealerships should use the “Least Trust” model of access management. This means that only people who must use the data daily should have access. Restrict access to sensitive information and monitor how it is being used. It’s also smart to use Multi-Factor Authentication to minimize the risk of accounts being hacked. - Train Your Teams
Train internal staff to enact cybersecurity best practices and respond to emerging threats. It’s also a good idea to designate a cybersecurity professional to oversee your dealership’s information security.
Best Practices Dealership Data
Dealerships handle a great deal of sensitive information. Every customer shares personal and financial details to complete a vehicle purchase, and dealerships need to respond to increasing concerns over data security. These best practices can help you ensure robust protection of both sensitive customer data and the company software infrastructure.
- Regular Security Audits
The world of cybersecurity is constantly evolving, and hackers find new vulnerabilities and infiltration strategies to infiltrate data. This is why regular audits and updates are essential to keep your dealership safe. Audit all aspects of your system from code security to user access controls and communicate the steps you take to customers to assure them of your commitment to data security. - Watch out for Phishing
In addition to pure hacking, scammers often use social tactics like phishing, which uses impersonation to fool clients or staff members into allowing a security breach. In 2024, emails were the most common way for scammers to initiate contact – so training staff against phishing emails is a must. When your team knows what to watch out for and the most recent phishing tactics, they will create a better human defense. - Learn About Vendor Data Security Standards
Dealerships can’t exist without vendors and partners. From software that’s used in the sales department to outside marketing partners, there are plenty of chances for scammers to try and infiltrate. A dealership’s vendors and business partners need to have equally strong cybersecurity measures so that your data ecosystem is kept safe. By inquiring about their data security practices, you will make better decisions about who to work with. Vendors who have the top certification of SOC2 Type2 are top-of-the-line.
Dealership Data Security
Every dealership is responsible for protecting customers’ sensitive data and maintaining a well-defended software infrastructure. These measures will keep both your business and customers safe from the ever-present threat of cybersecurity attacks.
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