Auto dealerships are irresistible targets for cybercriminals.
The amount of consumer data collected, processed and stored within dealer management systems — Social Security numbers, addresses, credit scores and financing information — is a jackpot for bad actors and identity thieves. The FTC reported 70,000-plus cases of identity theft related to auto loans and leases in 2021 alone.
The Safeguards Rule, which takes effect on June 9, is a set of information security requirements designed to protect consumer data from unauthorized access, use, disclosure, destruction or loss. Any financial institution under FTC jurisdiction that's not covered by the Gramm-Leach-Bliley Act must comply — including auto dealerships.
The Safeguards Rule left many dealerships scrambling to understand requirements and implement security measures. But instead of seeing the rules as more regulatory hoops to jump through, dealerships should view these requi…