Auto dealerships are targeted by cybercriminals – there is no debate. It doesn’t matter if you are large or small. But dealership cybersecurity measures are stuck in the mud. They don’t evolve. They don’t get better. In general, dealerships only seem to recognize the importance of cybersecurity after falling victim to a cyberattack. This reactive approach is not only risky but potentially disastrous.

How Do We Know This?

Helion has been providing dealerships – and dealerships only – with IT and cybersecurity services for more than 25 years. We’ve also been offering complimentary cybersecurity assessments during this time. Almost without exception, the dealerships we assess suffer from the same vulnerabilities year after year. Of course, this changes when they become Helion clients. But the vulnerabilities we see repeatedly are basic cybersecurity essentials.

Dealerships just aren’t taking cybersecurity seriously. Instead, they continue to view it as optional or an expense to be minimized. Many don’t understand what it takes to optimize their cyber defenses and they either fall for “magic solutions” or defer serious cybersecurity measures to the future.

The problem is that while dealership cybersecurity advancements remain stuck in the mud, cybercriminals are rapidly evolving, becoming more sophisticated and efficient with their tactics. The result – dealerships are sitting ducks, the low-hanging fruit that cybercriminals dream about.

Until dealers not only acknowledge the significance of cybersecurity but fully embrace it as a mission-critical function of their business, the common vulnerabilities that plague dealerships will persist and be exploited. Most commonly, the following are the dealership cybersecurity vulnerabilities we see again and again:

• Use of obsolete technology
• Unpatched software
• Poor management of administrative account access
• Use of weak passwords
• Ineffective and poorly managed employee awareness training
• Security misconfigurations
• Lack of cybersecurity expertise
• Unawareness of all the technology connected to the dealership’s network
• Poor backup management and testing
• Failure to have a practical, personalized incident response plan in place
• Incorrect implementation of multi-factor authentication (MFA)

The Need for Better Cybersecurity

Dealerships depend on technology to sell and service cars and trucks. Technology makes us all more productive. But the more we rely on technology, the more exposed we are to cyberattacks. This is why cybersecurity is so important. Here are some of the top reasons why auto dealers must make cybersecurity a critical focus:

• The Government Incentive: Severe Penalties –  Failing to comply with cybersecurity regulations can result in hefty fines and penalties. Companies might face financial penalties running into millions, alongside sanctions, civil penalties, and even criminal charges. The financial and legal risks make it imperative for businesses to prioritize cybersecurity.
• The Impact of Successful Attacks –  Cyberattacks can cripple your dealership. A sophisticated Distributed Denial of Service (DDoS) attack, for instance, can bring down an entire network, halting business operations. Ransomware attacks are another severe threat, where hackers encrypt data and demand a ransom. Each successful attack encourages more, often targeting the same victim repeatedly. That’s right, when you pay a ransom, you’re often hit again by the same criminal.
• Reputation Damage –  A dealership’s reputation is one of its most valuable assets. Cybersecurity breaches can severely damage this reputation, leading to a loss of customer trust that is hard to rebuild. Customers need to feel confident that their data is secure, and any breach undermines this trust.
• Protecting Innocent Victims –  Cyberattacks often harm innocent customers whose data is compromised. Your dealership has a duty to protect your customers’ sensitive information. Neglecting cybersecurity is a sign of disrespect towards customers, which can be detrimental to any business.

Understanding IT and Cybersecurity: A Business Imperative

Dealers must grasp the essentials of IT and cybersecurity to protect their dealerships and stay competitive. As dealerships adopt more digital technologies, such as cloud computing, remote work, and AI, their vulnerability to cyber threats increases. Cyberattacks can have lasting impacts, including regulatory and reputational risks.

Neglecting cybersecurity is a gamble with high stakes, risking the financial health of your dealership, the livelihoods of employees, and the data security of customers. Dealers must ensure robust defenses and have detailed plans for a cyberattack response. If you cannot answer critical cybersecurity questions, you’re effectively ignoring a burning house.

The urgency for dealers to prioritize cybersecurity has never been greater. It’s time to act decisively to safeguard your business and customers from the relentless wave of cyber threats.