Physical Audits Support Software in Thwarting Dealer Cybercrimes

Physical Audits Support Software in Thwarting Dealer Cybercrimes

Dealerships face rising cybercrimes and must prioritize frequent physical security audits alongside software compliance tools.

As cybercrimes against auto dealerships escalate, dealers must recognize the importance of conducting frequent physical security audits to supplement any software-driven compliance tool they may be using. This advice comes from Terry Dortch, a leading dealership compliance expert at Automotive Risk Management Partners, whose knowledge in this field is unparalleled.

The need for physical audit scrutiny is how dealership electronic and manual processes ensure the integrity of the Safeguards/CARS Rule designed to protect customer information from theft. The Federal Trade Commission’s CARS Rule adds truth and transparency to the car buying and leasing process by clarifying that certain deceptive or unfair practices are illegal.

“While data and cybersecurity breach prevention are undeniably crucial for dealerships, it’s important to note that much of the information that identity thieves seek is not deterred by software security in these systems alone,” Dortch explained.

One typical issue dealerships experience is the occurrence or appearance of disparate impact or discriminatory action, which can lead to run-ins with the Federal Trade Commission (FTC). To get around such situations, implementing physical audits should be a priority. Regular audits help nip potential threats and identify complicit behaviors quickly. Dealers who prefer less stringent compliance increase their risk of incurring penalties that can significantly impact a dealership’s financial health and reputation.

Potential opportunities for physical data breaches include personal information on documents in deal jackets that are not secured, but stacked, on F&I office desks and floors, left near photocopy machines and written on sales and service paperwork left unattended on sales staff and service advisor desks. Malicious eyes of individuals, even customers, wandering the dealership may be enticed to commit these crimes if access to valuable personal financial information is presented so readily to them.

Dortch said a dealer’s compliance needs are best served when both aspects of data security are adequately addressed to protect against these crimes.

The potential fines for negligence in physical compliance can reach several million dollars, and they are not just a possibility, they have occurred. This stark reality should dispel any notion that software-based compliance protection alone is adequate in this business environment. Compliance is an all-encompassing process that demands meticulous attention and consistency, emphasizing the urgency of the issue.

You May Also Like

Randy Wise Automotive Establishes $50,000 Scholarship

The scholarship fund is established at Northwood University in honor of Randy Wise Automotive Group Founder Randy Wise.

Randy Wise Automotive Group is establishing a $50,000 scholarship fund at Northwood University in honor of its esteemed founder and leader, Randy Wise.  

“We are deeply honored by Randy Wise Automotive Group's generous contribution, which aims to support and inspire the next generation of automotive retail industry leaders by providing critical financial assistance to students enrolled in Northwood’s Automotive Marketing and Management degree program," stated Dr. Matthew Bennett, vice president of strategic alliances and the Center for Automotive and Mobility Studies at Northwood University.

Lithia & Driveway Expands Retail Network in US Southeast Region

These newly acquired stores are projected to generate over $240 million in annualized revenue for Lithia & Driveway.

Orbee Integrates ActivEngage Messaging Data

Integrating messaging data into CDP shopper profiles will help create powerful shopper journey segmentation and personalization.

NADA and Authenticom Introduce NADA Vault

NADA Vault is a secure dealership data syndication platform to syndicate their data among vendors, customers and manufacturers.

CarNow Introduces ‘Conversion+’ for Independent Car Dealers

The new platform facilitates live connections between dealerships and customers, guides the shopping process and drives sales conversion.

Other Posts

Rita Case Tips Her Hat to Holy Cross Health Staff

Hospital staff enjoys lunch sponsored by Rick Case Automotive in celebration of National Nurses Week and National Hospital Week.

NextGear Capital Rolling Out Self-Audit Capability

Using its popular mobile app, NextGear’s new feature enables dealers to complete vehicle audits on their own.

F&I Survey Shows Generational Differences in Research, Shopping

Price, availability and budget remain top of mind for consumers, but convenience in research and selection are growing in importance.

Impel Adds WhatsApp to AI-Powered Platform

Integration enables global auto retailers and OEMs to deliver AI-powered omnichannel experiences, encompassing the messaging platform.