How Dealerships Can Stay Secure in a Changing Cyber Landscape

In today’s digital-driven world, dealerships rely on sophisticated software to manage everything from sales and financing to inventory and customer relationships. This technology has enabled incredible efficiency, but it has also introduced new challenges—particularly in cybersecurity.

Over the past few years, the automotive industry has witnessed increasing cyber threats, highlighting the importance of robust digital defenses. While dealerships cannot predict every potential risk, they can take proactive steps to create a resilient and secure operational environment. By implementing smart strategies and strengthening cybersecurity frameworks, dealerships can ensure seamless operations, maintain customer trust, and continue growing without disruption.

Building a Cyber-Resilient Dealership

A strong cybersecurity foundation is not just about defense—it’s about continuity, preparedness, and proactive management. Here’s how dealerships can safeguard their business and stay ahead of potential risks.

1. Strengthening Digital Infrastructure

Every dealership operates on multiple digital platforms—Dealer Management Systems (DMS), Customer Relationship Management (CRM) tools, financing platforms, and service applications. Ensuring these systems are well-protected is key to uninterrupted business.

• Multi-Factor Authentication (MFA): Require MFA for all dealership software, ensuring only authorized personnel have access.
• Regular Software Updates: Keep all systems, from your CRM to your payment processing software, updated with the latest security patches.
• Cloud Security Measures: If using cloud-based platforms, verify that your provider offers strong encryption, data redundancy, and continuous monitoring.

2. Smart Vendor Management

Dealerships work with multiple software vendors for various operations. A strong vendor assessment strategy ensures these partners uphold high security standards.

• Assess Vendor Security Practices: Ask technology providers about their cybersecurity protocols, including encryption standards and compliance with regulations.
• Diversify Key Systems: Avoid dependency on a single provider for critical operations. A multi-vendor approach ensures flexibility in case of disruptions.
• Regular Security Audits: Work with vendors to conduct periodic security checks and assess potential vulnerabilities.

3. Data Protection and Recovery Strategies

Data is at the heart of every dealership. Protecting it ensures smooth operations and customer confidence.

• Automated Backups: Maintain secure and frequent backups of all dealership data, following the 3-2-1 rule: 3 copies of data, 2 different storage types, 1 copy stored offline.
• Network Segmentation: Isolate essential dealership functions (such as financial data and inventory systems) from public-facing platforms like customer websites.
• Access Control: Limit access to sensitive systems based on role-specific permissions.

4. Cyber Awareness and Employee Training

People are the first line of defense in cybersecurity. A well-trained team can recognize and prevent potential threats before they become an issue.

• Cybersecurity Training Programs: Educate staff on identifying phishing attempts, handling sensitive data, and securing devices.
• Simulated Cybersecurity Drills: Conduct internal security drills to test readiness and response strategies.
• Clear Security Policies: Establish guidelines on password management, software usage, and reporting suspicious activity.

5. Building an Incident Response Plan

Even the most secure systems benefit from a well-prepared response strategy to ensure smooth recovery in case of an unexpected event.

• Define Clear Action Steps: Assign roles and responsibilities for IT teams, leadership, and employees.
• System Isolation Capabilities: Ensure dealership networks can be temporarily segmented to contain any security concerns.
• Maintain Open Communication: Establish a plan to notify internal teams, partners, and customers transparently if needed.

6. Cyber Insurance and Legal Safeguards

A cyber liability insurance policy adds an extra layer of protection, covering potential disruptions and assisting in recovery efforts.

• Choose a Comprehensive Plan: Opt for policies that cover business continuity, data recovery, and compliance requirements.
• Compliance with Industry Standards: Align with security frameworks such as NIST (National Institute of Standards and Technology) or ISO 27001 for best practices.

Future-Proofing Your Dealership

Technology will continue to evolve, and so will the strategies to secure it. By adopting a proactive cybersecurity mindset, dealerships can confidently operate without disruptions, safeguard customer trust, and keep their business growing.

A strong security strategy is not just a safeguard—it’s an investment in operational excellence and long-term success. Dealerships that prioritize cybersecurity today will be better positioned for the opportunities ahead.