6 Min ReadSeptember 16, 2022

Data Privacy: What You Should Know

Data Privacy Day: What You Should Know

October is Cybersecurity Awareness Month, which focuses on increased awareness of cybersecurity threats and best practices to protect data. Data privacy is more critical than ever before with more of our personal and dealership data is digitized and shared online. The more you know about data privacy, the better you will be able to protect yourself from risks.

Data Privacy and Security: The Basics

Data privacy focuses on the rights of individuals. This includes assessing the purpose of data collection and processing, implementing privacy preferences, and monitoring the way organizations govern individuals’ personal data. If your dealership loses any amount of data privacy through a breach, you risk losing the trust of your consumers.

Data security involves upholding a set of standards and safeguards. Organizations must take these measures to prevent any third party from accessing digital data without authorization, and ensuring there is no intentional or unintentional alteration, deletion or disclosure of data.

Be Smart About Your Data

Data privacy targets critical personal information, also known as Personal identifiable Information (PII) and Personal Health Information (PHI). The type of information can include Social Security numbers, health and medical records, financial data, bank account and credit card numbers. To keep your personal information safe, regularly review the privacy settings on your phone, social media accounts, online services and IoT apps. The National Cybersecurity Alliance has great instructions for updating the privacy settings for your devices and social media/online services.

It’s also important to consider the amount of personal information you may want to share. Weigh the information requested against the relevance of the services offered. After deciding how much to share, protect this data with an effective password. Long, unique passwords are recommended — and you should never use the same password for all accounts. You can add a further layer of security by using multifactor authentication (MFA) when available, which has been shown to help block up to 99.9% of automated attacks.

Be Proactive When It Comes to Data Security

Dealerships have a treasure trove of personal and financial data that could be exposed in a cyberattack. There’s a range of sensitive information required to operate your business, as well as private customer data from your F&I department, CRM and DMS. Failure to put sufficient safeguards in place could cause considerable damage to your dealership’s financial future and your customer’s confidence in you. Our research shows 84% of consumers said they would not go back to a dealership after their data had been compromised.

Protecting customer data also extends beyond the walls of your dealership: If you have partners and vendors that provide services on your behalf, you are responsible for how they collect, protect and use your customer data. Make sure to discuss their data privacy and protection process. To be compliant with FTC Safeguards, dealerships are required to periodically assess how their service providers safeguard their data and keep watch over their adherence to privacy laws and state regulations. If you don’t know where to begin, a managed service provider like CDK Global can help you with an evaluation.

It’s also critical to provide your employees with data and cybersecurity awareness training on a monthly or quarterly basis. Create a solid culture of understanding that distinguishes between data privacy and data security.

Lastly, hold a “Tech Talk” meeting with associates to review data protection for your dealership technology, and follow up with security awareness training. Again, there are many security partners out there that offer turnkey security-awareness training solutions specifically built for dealerships. We encourage you to look into them — and let Cybersecurity Awareness Month inspire you to strengthen data protection for your customers and business all year long.

Share This

CDK Global
By CDK Global
Staff

Recent Insights

Ease of Purchase Hits New High in February

Ease of Purchase Hits New High in February

Despite hurdles when it comes to affordability, more car buyers said it was easy to complete their purchase in February...
2 Min ReadFeb 27David Thomas
That’s a Wrap. Takeaways From N A D A 2024.

That’s a Wrap: Takeaways From NADA 2024

The camaraderie and partnership that comes with being at NADA were in full effect at this year’s show in Las...
3 Min ReadFeb 19CDK Global
Buyers Take the Wheel for Car Sales in 2024.

Buyers Take the Wheel for Car Sales in 2024

After three years of dramatic post-pandemic market swings, buyers in 2024 are poised to take back the wheel with plenty...
3 Min ReadFeb 13CDK Global
What’s the Key to Win the Automotive Service Wars.

What’s the Key to Win the Automotive Service Wars?

Although 2024 is shaping up to be a buyer’s market, new and used vehicles continue to be painfully expensive for...
3 Min ReadFeb 9David Thomas
Friction Points 2024

CDK Releases the Friction Points 2024 Study

The automotive industry has returned to somewhat of a pre-pandemic state at the end of 2023, but car buyers are...
1 Min ReadFeb 1CDK Global
The Game Changing Value of an Automotive C R M.

The Game-Changing Value of an Automotive CRM

The automotive industry is known for its love of acronyms and buzzwords. Most of the time we see dealers change...
4 Min ReadFeb 1Amber Good
Busting the Top Five Myths About the American Car Dealer.

Busting the Top Five Myths About the American Car Dealer

When you live and breathe the industry you work in, you tend to get a little protective of your colleagues...
5 Min ReadJan 29Barb Edson
Service Shopper 3 point 0 white paper.

What’s Changed in Service Shopper 3.0

Winning over a shopper is difficult for any type of retailer. Securing someone’s business looking to service their car however,...
1 Min ReadJan 12CDK Global
F and I Manager Tips. Hidden Opportunities in the Service Department.

F&I Manager Tips: Hidden Opportunities in the Service Dept

At first glance, the F&I and Service departments may seem worlds apart. Yet, both departments are critical linchpins in connecting...
4 Min ReadJan 12Saundi Crandall
New Cars Easier to Find, Bolstering Buyer Attitudes.

New Cars Easier to Find, Bolstering Buyer Attitudes

Car buyers raced against the clock to secure deals before the end of the year while inventories and incentives were...
2 Min ReadJan 3David Thomas