As an automotive dealership, protecting your customers’ information is crucial to building trust and maintaining a positive reputation. That’s why knowing the Safeguards Rule and its impact on your dealership is important.
The Safeguards Rule is an amendment to the Gramm-Leach-Bliley Act (GBLA) established in 2002. Financial institutions must develop, implement, and maintain an information security program to prevent unauthorized access to sensitive customer information. In the fall of 2021, the Federal Trade Commission (FTC) announced that the Safeguards Rule would be expanded to include non-financial institutions that engage in financial transactions, including auto dealerships.
Auto dealerships must follow several new rules to protect consumer information by June 9, 2023. One of the few security technologies specifically called out by the FTC is multi-factor authentication (MFA). Dealerships that don’t comply by June 9, 2023, face up to $46,517 per consent order violation.
But complying with the Safeguards Rule isn’t just about avoiding penalties – it’s about protecting your customers and dealership. According to a 2021 CDK Global Survey, 84% of consumers said they would not return to a dealership and buy another vehicle if their data had been compromised. Similarly, 85% of dealers claimed cybersecurity is important compared to other operational areas.
By complying with the Safeguards Rule, you can demonstrate to your customers that you take their privacy and security seriously. This can help build trust and loyalty, leading to repeat business and positive word-of-mouth referrals.
Don’t wait until it’s too late – start taking steps toward compliance with the Safeguards Rule today. Your customers will thank you.
Here are some steps you can take to comply with the Safeguards Rule:
- Identify your sensitive customer information. This includes Social Security, driver’s license, and credit card numbers.
- Develop and implement security measures to protect your sensitive customer information. These measures should include firewalls, intrusion detection systems, and encryption.
- Train your employees on security procedures. Ensure your employees know how to protect sensitive customer information and what to do if they suspect a security breach.
- Monitor your security measures. Make sure your security measures are working effectively and that they are updated as new threats emerge.
Following these steps can help protect your customers’ information and comply with the Safeguards Rule.
Cyber Gnomes can help you comply with the Safeguards Rule. We offer a comprehensive suite of cybersecurity solutions that can help you protect your customers’ information and meet the requirements of the Safeguards Rule. Contact us today to learn more.
