Ensuring Customer Data Security at Auto Dealerships
As an auto dealership owner, ensuring the safety of the cars in your lot is a headache that comes with the territory. When you add customer data security, we’re already in migraine territory.
Not only does your business’ success depend on it, but the law requires you to maintain a specific standard to ensure the safety of the information you collect, per the latest Standards for Safeguarding Customer Information directive from the Federal Trade Commission.
Figuring out how to keep customer data secure means one less thing to worry about. Here’s everything you need to know about ensuring customer data security at your auto dealership.
How to Keep Customer Data Secure
The odds of customers returning to a business if they cannot trust them to safeguard their data are generally low. In fact, a CDK Global study found the figure to be 84% among car dealership customers.
Now that we’ve established that data privacy is crucial to running a successful auto dealership, let’s share some of our expert tips on keeping customer data secure.
Implement a Data Security Policy
Hackers are always looking for valuable data, and the information you collect from customers makes your dealership an attractive target. The more data you gather, the higher the risk of becoming a cyberattack victim. To protect your business, it’s crucial to implement and regularly review access controls.
Start by determining who truly needs access to customer information and periodically reassessing their access based on current business needs. Not everyone on your team requires full access to all data, so limit it according to roles, departments, or seniority. This approach reduces exposure points, even if a staff member’s credentials are compromised. In short, be selective about the data you collect and who gets access to it. Doing so strengthens your dealership’s defense against potential cyber threats.
Promote Security Awareness
Your ability to secure customer data exponentially improves when you become aware of potential threats. You can promote security awareness by implementing the following:
- Educate your staff: Frequently train your employees about common forms of social engineering, such as phishing and pretexting, that they may encounter.
- Perform regular risk assessments: Periodic organization-wide cyber-awareness and risk assessment would bring staff members up to speed with the latest security standards.
- Keep software up-to-date: Regularly update your data protection programs, including antivirus and malware protection apps.
- Enforce strong passwords: Encourage strong passwords across all levels and departments. Using birthdays, pet names, or “password123” as security codes is a precursor to cybersecurity disasters.
- Maintain endpoint security: Set up a guest wi-fi for your customers to limit external access to your dealership’s private network.
Secure your Networks
Encryption is the way to go if you want to secure your network and provide customer data security. A network encryption tool like a VPN can help you secure your auto dealership’s network, making your customers’ IP addresses and data inaccessible to cyber attackers.
Password encryption tools can also make the sensitive information you collect and your passwords unreadable to hackers, even if they break into your system.
Let The Experts Handle Data Security
The gold standard in customer data security is a synergy between a reputable IT provider and your in-house security personnel or team.
This partnership means your in-house professionals will have access to a larger team and the extensive resources of your IT partner to provide a cost-effective, personalized, and comprehensive IT solution for your auto dealership business.
Together, they will conduct regular security audits, update your security infrastructure, ensure endpoint security, and even handle data breach reporting if one occurs.
How to Deal with a Data Breach at Auto Dealerships
When CDK Global, North America’s largest dealership software provider, suffered back-to-back cyberattacks in June, it caused a ripple effect that affected more than 15,000 car dealerships in the USA and Canada. In response, the service provider shut down its network to contain the breach, warned its customers about potential threats by the attackers, and reported the hack to appropriate authorities.
According to the latest directive from the Federal Trade Commission, the Standards for Safeguarding Customer Information is the standard for data breach reporting at an auto dealership.
Customer Data Security Starts with Responsibility
Your auto dealership business depends on the information you collect to complete purchase forms, set up maintenance schedules, payment reminders, newsletters, personalization purposes, advertise special offers, etc. Becoming security conscious and owning your responsibility as a business owner is the first step to ensuring customer data security.
With the tips we shared and the recommendations and safeguards implemented by a proactive IT/security expert, you can be confident in delivering premium service without the risk of data breaches at your auto dealership.