"Cyberattacks Increase in Auto Dealerships as Hackers Take Advantage of Gaps in Protection"
According to CDK Global Inc., a leading automotive retail software provider, 15 percent of dealers have experienced a cybersecurity incident in the last year. CDK Global's second annual dealership cybersecurity study revealed that 85 percent of those affected were victims of sophisticated phishing attempts disguised as legitimate emails, resulting in data breaches, IT-related business interruptions, and revenue loss. Cyberthreats have raised concerns among auto retailers about securing their networks as they prepare for the December 9 implementation of the Federal Trade Commission's (FTC) Safeguards Rule. The FTC Safeguards Rule, as amended, outlines compliance measures such as securing customer data and implementing a comprehensive information security program. The study discovered that only 37 percent of auto retailers are confident in their current protection, resulting in a 21 percent decrease in preparedness compared to CDK Global's 2021 study. With the Rule compliance deadline fast approaching, dealerships are taking cybersecurity seriously. According to the CDK Global State of Cybersecurity in the Dealership report, nearly 60 percent of dealers intend to prioritize upgraded IT infrastructure investments. In comparison to 2021, anti-virus and malware protection increased by 31 percent, followed by the establishment of secure networks with consistent updates and patching. Dealers plan to update cybersecurity measures to combat email phishing, ransomware, business data theft, malware, and more. Endpoint device security, cybersecurity insurance, and ongoing staff training are among the additional action plans. This article continues to discuss key findings from CDK Global's State Of Cybersecurity in the Dealership 2022 report.