Being a 25 year veteran of the retail automotive industry, I have personally witnessed the rise of the digital platform and its relation to the car buying experience. From the development of dealership websites to the implementation of virtual transactions without ever stepping foot into a retail facility. This change has been profound and created a process that required substantial investments toward new platforms and consumer centric protocols. As an industry in general, the retail auto sector has been more reactive than procative in nature when it comes to understanding and developing the retail digital footprint. This article will focus on one specific area, that dealership executives need to actively understand.... Cyber Security.
Cyber Security by definition refers to the body of technologies, processes, and practices designed to protect networks, devices, programs, and data from attack, damage, or unauthorized access.
For an automotive retailer, one can assume that by installing anti-virus softwares and firewalls, it would serve as adequate protection. This is simply not the case. To use a reference, simply locking the doors on your vehicle, does not stop your vehicle from being stolen or broken into. This generalizaton is an example meant to highlight the lack of precautionary measures that are seen nationwide. If big institutions such as the Government of Canada (CRA), LifeLabs and Garmin can be compromised - what's to stop it from happening to your dealership?
Let's begin with the type of information that is given to a dealership. Personal and corporate credit applications, banking information, incomes, addresses, phone numbers etc. These types of information is considered the motherload to cyber criminals. Information which can be sold and/or used in indentity theft. Having a dealerships consumer data base stolen will not only be embarassing for the dealer but can impact negatively for the OEM brand as well. Imagine being the individual who is being interviewed by the your local news channel regarding a data privacy breach. Consider the financial cost to get information back but more importantly, the cost associated to restoring public image and consumer confidence. Unfortunately, this could lead to a make or break future for your business.
Another aspect of cybersecurity is the act of ransomeware. Ransomeware by defination is a type of malicious software designed to block access to a computer system until a sum of money is paid. This type of attack is usually kept quiet due to public embarrasment and results in ransom payment to regain access to the companys digital infrastructure. Including company emails, client information, financial statements and banking information to highlight a few. Some major institutions already have a ransomeware account established should they ever need it. Does your dealership?
Payments can be a substantial amount, either by e-transfers or digital currency. This is just one factor by the cyber criminal. Along with the ransom amount is the cost associated with the "downtime" of your dealership. How long can you run without having access to your digital infrastructure? Also, as one dealership owner stated, "what if they don't want a ransom, and just want you out of business?" That was a powerful statement.
My intent is not to instill fear but to help enlighten what is a virtually unknown to the industry. Statements like "it hasn't happened to me or I will deal with it if it happens", are all comments of denial and uncertainty. The following article below outlines the views of a dealership owner after his facility was cyber attacked. More importantly, from a consumer point of view, what statement or certification can you share with your clients when they ask "what is your dealership doing to protect my personal information?"
This leads me to ACX - Autocyberworx. A cyber security and digital solutions company designed to ensure dealerships and consumers are protected from cyber threats.
The time is now, the automotive industry needs to take a proactive stance to ensure critical measures are being invested to protect their clients, the dealership and OEM brand. Change, fear and uncertainty can be very overwhelming for any business, however, as the auto digital footprint expands, so will the need for cyber security business partnerships. If any statements within this article ressonated with you, feel free to connect with me directly and I will be happy to arrange a no-charge consultation for your dealership to discuss the importance of cyber security and data privacy.
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