Your dealership’s biggest financial risk is a data security breach. It’s simply a reality about doing business in today’s retail environment – especially the automotive space. What’s more, according to Dealertrack Compliance expert Randy Henrick, nearly half of all Americans had their data exposed through cybersecurity breaches in 2014. That stat comes courtesy of the Ponemon Institute, as does this: The number of successful cyberattacks in the U.S. has grown 144 percent in the past four years, over 60% against small to mid-size businesses like yours.
If that doesn’t get your attention, perhaps this will: The FTC has ruled that data breaches can constitute unfair or deceptive acts under Section 5 of the FTC Act, with potential fines of up to $16,000 per day. That was the hot topic of conversation today at the Day One NADA Workshop: Data Security Breaches — A Dealership’s Biggest Risk. Hosted by Henrick, the workshop went into detail about the risks of cyber security, required actions and the essential “Ps” of security: Process, People and Patchwork. As a result it spurred serious questions and discussion around three key topics:
Are you operating on current systems and are they fully patched? Tip: Most hacking events leverage old flaws that already have been addressed, but proper patches have not been applied.
Do you have a tested incident response program? Tip: Have a certified security professional you can call in immediately if there is a breach incident, and identify employee responsibilities and daily action steps.
What kind of culture and employee training are you doing to cover yourself from a data breach? Tip: Over 60% of data breaches result from employee negligence or intentional misconduct.
The conversation continues tomorrow at room N103 tomorrow (April 1) at 10:30 am, and at Dealertrack booth 1124C. If you have a question, or want to learn more about how data security is a critical and volatile issue for your dealership. Henrick will be at the booth on Friday, April 1 from 2-4 pm; Saturday, April 2 from 10-12 noon and 2-4 pm; and Sunday, April 3 from 10-12 noon.
