Safeguarding Your Dealership: Navigating Data Breaches and Ensuring Compliance

Dear Elevation Dealer Services Community,

In today’s digital landscape, protecting sensitive customer information has become paramount. With recent events such as the CDK Global cyberattack disrupting automotive transactions nationwide, it’s crucial to take proactive measures to safeguard your dealership from potential data breaches.

Our hearts go out to the affected dealers and employees impacted by this data breach. We hope for a swift resolution to this challenging situation.

Understanding the Threat Landscape

Data Breaches and Their Impact: Data breaches pose a significant risk to any dealership, exposing sensitive customer information and damaging your reputation. The recent incident with CDK Global highlights how vulnerable the industry is to cyber threats. This breach has halted many dealerships from conducting transactions, emphasizing the need for robust cybersecurity measures.

FTC Health Breach Notification Rule: The FTC’s Health Breach Notification Rule mandates that any unauthorized access to health information must be reported. For dealerships offering insurance products with health components, compliance with this rule is critical.

Protecting Your Dealership

Implementing Strong Safeguards:

1. Data Encryption: Encrypt sensitive data to protect it from unauthorized access.
2. Regular Audits: Conduct regular security audits to identify and mitigate vulnerabilities.
3. Employee Training: Train staff on cybersecurity best practices and phishing prevention.

Ensuring Partner and Vendor Compliance: Make sure your F&I partners and vendors adhere to stringent data protection standards. Their compliance with data security protocols can significantly reduce the risk of breaches originating from third-party services.

Data Breach Insurance: Investing in data breach insurance can provide financial protection in the event of a cyberattack. This coverage can help manage the costs associated with data breach response, including legal fees, notification costs, and regulatory fines.

Offering ID Theft Protection

Consider introducing ID Theft Protection as an F&I product. By providing this service, you can offer your entire dealership and customers a safety net against identity theft, with coverage up to $1,000,000 to rectify financial damages. This not only adds value to your offerings but also builds trust with your clients.

Why Act Now?

The recent CDK Global cyberattack is a wake-up call for all dealerships. With no immediate resolution in sight, it’s crucial to fortify your defenses against such threats. By implementing the measures outlined above, you can protect your dealership and ensure compliance with relevant regulations.

Our thoughts are with those affected, and we hope that the recovery process will be swift and comprehensive.

Stay vigilant, stay protected.

Chad Staples

President, Elevation Dealer Services