It’s no secret, particularly following the widely publicized CDK hack and estimated $25 million ransom payment to end it, that the automotive industry is uniquely susceptible to cybersecurity breaches. In fact, it’s one of the most pressing issues in the industry and its regulating body in the United States.
The Growing Cybersecurity Threat in the Automotive Industry
As Security Intelligence explains, a huge majority (85%) of surveyed dealerships note cybersecurity as one of the most important aspects of operation. “Auto dealerships are increasingly concerned with cybersecurity in the face of new regulations and an alarming rise in cyberattacks,” the article elaborates, 89% of auto dealerships say cybersecurity is more important than last year, a 12% increase. Not surprisingly, only 37% of auto retailers are confident in the current protection, which is a 21% decrease from 2021.” In other words, things seem to be trending in the wrong direction in terms of confidence in securing data, reliable communications, and scalable operations with security as a foundation.
Why Cybersecurity is Critical for Auto Dealerships
And this ripple effect can be felt straight through to customer relations, Security Intelligence adds, dealerships are likely to incur a significant impact on their customer loyalty. “Some 84% of customers say they would not buy another vehicle from a dealership if a breach compromised their data.”
It makes sense, then, that cybersecurity is one of the most important aspects of a dealership to focus on now. “If you’re managing or operating a car dealership, protecting sensitive customer and business data should be a top priority,” Compass ITC suggests. It further explains that automotive dealerships, even more so than other retail companies, tend to collect and store vast numbers of extremely sensitive client information, such as:
- Personal Identifiable Information (PII): Names, addresses, phone numbers, and email addresses.
- Financial Data: Credit card details, bank information, and credit scores for financing applications.
- Driver’s Licenses and Social Security Numbers: Often required for vehicle purchases or test drives.”
And, Compass ITC continues, customers do and will notice—and have a tough time doing the old forgive-and-forget. “Trust is the cornerstone of customer relationships. A data breach can erode this trust in an instant, causing customers to take their business elsewhere.” To avoid this, dealerships should be proactive in investing in cybersecurity, which demonstrates to your customers that you take their privacy and security seriously. “It builds confidence in your dealership and sets you apart from competitors.”
Even more so, the article continues, regulatory bodies are cracking down on how this information is handled to protect the consumer. “Dealerships must comply with a range of data privacy and security regulations… [and] Non-compliance can result in steep fines and reputational damage.” Cybersecurity measures protect your dealership; while also helping you stay compliant with these regulations. The Gramm-Leach-Bliley Act (GLBA), which requires financial institutions—which, in this case, includes auto dealerships—to protect customer information, is one example.
How Cloud-Based Phone Systems Enhance Security and Compliance
One key way to manage such security is by ensuring that you are using the right type of phone system: a cloud-based system. “Traditional phone systems can leave your business vulnerable to data breaches and disruptions, while cloud-based phone systems offer advanced security features designed to protect your data,” details an article by American Business Machines. “Your business phone system handles sensitive information, from client details to internal communications. Cloud-based phone systems safeguard this data through encryption, ensuring that calls, messages, and voicemails are protected from unauthorized access both during transmission and at rest.”
Cloud-based systems, often referred to as one common type of cloud-based phone system called a Voice-over-Internet-Protocol (or VoIP), allow increased efficiency by empowering employees to work remotely, with more data to inform their interactions with any given client, and, of course, more security to rely on. This helps ensure, to both the dealership players and the consumers, that information exchanged on these systems is safely stored and protected, both on and after the call itself.
But that is not all—it also improves the quality of the calls themselves (talk about bonus points!) As ABM explains, “Cloud-based phone solutions operate on secure, redundant data centers that provide 99.999% uptime.” This ensures that your communication system stays dependable even if there is a hardware malfunction or a cyberattack. “Redundant infrastructure ensures business continuity, so you never miss a critical call.”
All-in-all, a remote, cloud-based phone system reduces on-site labor needs and inefficiencies, simultaneously increasing positive customer experiences, and bolstering trust with consumers by ensuring a higher level of data security. It is just smart business.
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