Car dealerships need to give customer data a safe ride, taking all necessary cybersecurity precautions
Car dealerships are living in dangerous times. CDK Global states, “In 2024, 35% of auto dealers experienced a cyberattack or incident, and 92% said it resulted in a negative financial/operational impact.”
With the increasing cyber threats facing automotive dealerships in a connected world, comprehensive cybersecurity measures are critical for protecting customer and business data. A loss of critical data can damage dealerships’ bottom lines and tank their reputations with customers and the larger business community.
When mitigating cyber risks in automotive dealerships, many in the industry are choosing an experienced managed IT services partner over trying to cope with the huge security challenges in-house. This gives them easy access to cost-effective (and proven) proactive solutions provided by experts who can enhance efficiency, ensure compliance, and secure critical data.
Common Cyber Risks in Automotive Dealerships
Some of the top threats facing car dealerships include:
- Email phishing attacks targeting employee credentials
- Ransomware hurting dealership operations.
- Data breaches exposing customer and financial records
- Vulnerabilities provided by stolen or weak passwords
- Vehicular cyberattacks
- Employee mistakes and lack of awareness
So industry players are only fooling themselves if they think, “Security solutions for car dealerships aren’t necessary.” It’s not a matter of if they will be attacked but when.
Key Components of End-to-End Security Solutions
The key to mitigating cyber risks in automotive dealerships is to put a comprehensive security plan in place. This should include, at the very least:
Network Security
Protecting connected systems and cloud infrastructure is essential for maintaining security solutions for car dealerships. This requires securing dealership networks with regular software and security updates and strict firewall configurations. The dealerships should also implement strict access controls and establish separate, secure Wi-Fi networks for use by business operations and customers.
Endpoint Security
Here, you secure all connected devices, including employee mobile phones, tablets, and dealership computers, protecting them from malicious threats and cyberattacks. Every device that links to the network poses a threat, perhaps a pathway attackers use to steal critical data. Endpoint security allows businesses to detect malware and other attacks quickly. It also secures devices with application control.
Data Encryption
Data encryption and strong data controls can help ensure that customer and transactional data remain protected. Even if an attacker breaches a car dealer system, the encryption will keep the data secure, thwarting the criminal intention. This also helps with compliance since many data protection laws demand encryption.
Monitoring and Incident Response
Constant vigilance is one of the keys to mitigating cyber risks in automotive dealerships, helping to detect and address threats in real time. Since potential attacks can come at any time, any monitoring solution must be provided around the clock, with strong response measures built in. The response must contain the threat, prevent it from spreading to other systems and devices, and eradicate it.
Best Practices for Cyber Risk Mitigation
There are many ways to ensure cyber security for car dealerships. To begin, each auto retailer should implement multifactor authentication (MFA) for all systems. So rather than just providing a username and a password to access a system, a staff member must also address a second identification factor, such as entering a code sent to their email, answering a secret question, or scanning a fingerprint.
Implementing a password manager is also a good idea since dealership employees often have to log into different systems to do their jobs. Rather than using the same passwords for all logins—making it easier for hackers to get into a network—staff can use the password manager to create strong, different passwords for each instance, providing increased protection.
Makers of applications and connected devices often provide updates and patches to protect these things and to fix problems. However, when auto dealerships and their staff fail to do these updates in a timely manner, cybercriminals have a window in which to take advantage of these gaps in defense. So, a system of regular and automatic updates should be put into place.
Often, vulnerabilities are exposed through dealership staff mistakes or lack of awareness. Regular cybersecurity training can help them know how to deal with phishing, ransomware, and other cyber threats. In many instances, staff believe that IT alone will deal with security attacks, but creating a culture of safety awareness will help teach each person to play their part.
And of course, if the unthinkable happens and your data is breached, not only do you need a strong response in place, but you must have a secure data backup (perhaps both in the cloud and on-premises) so you can restore critical information as quickly as possible, minimizing the disruption to your business.
How NRI Delivers End-to-End Security Solutions:
With our dedicated automotive consulting practice, NRI has repeatedly won the race, protecting automotive dealerships from threats with tailored strategies to meet each one’s unique needs. We leverage advanced tools, such as artificial intelligence (AI), to monitor and respond to cyber threats, providing you with everything you need to have a safe drive.
The technologies provide superior security coverage and can be used for data analytics that improve every aspect of auto retailing, ranging from acquisition to retention. AI and machine learning algorithms, for example, can help you analyze customer data from diverse sources to identify purchasing patterns, achieve greater revenue, and build strong, long-lasting customer relationships.
So, if you want to shift your dealership into top gear, we will show you how to stay safer and operate smarter.
