As an auto dealership, you handle sensitive information in transit such as customers’ financial and personal data, making security a top priority. Banks have long been held as the gold standard for security in transit, and it makes sense for auto dealerships to strive for the same.
The Federal Trade Commission (FTC) has long established security standards for financial institutions with the goal of keeping the consumers’ Personally Identifiable Information (PII) protected in transit. And now, specific compliance to enhanced security standards for auto dealerships has a hard deadline of June 9th, 2023. On this date, auto dealerships are required to implement the same in transit security standards required of financial institutions. This means dealerships are now faced with the challenge of providing an end-to-end in transit encrypted solution for exchanging confidential documents necessary to sell a car without causing extra frustration for their customers.
Revised FTC Safeguards Rule
The FTC Safeguards Rule requires financial institutions to develop, implement and maintain a comprehensive information security program that includes administrative, physical and technical safeguards, including encryption in transit.
The FTC recently revised the Safeguards Rule to provide more specific guidance on how to secure customer information and to reflect the changing technology landscape. The revised rule establishes new requirements for secure data storage, secure transmission of data (ie. end-to-end encryption in transit) and regular monitoring of security systems.
The new guidelines will be in full effect soon. This means that auto dealerships must have their information security programs fully implemented and be in compliance with the new requirements by that date. The deadline is quickly approaching– if you want to make sure you have everything in order check out our cyber security for auto dealerships checklist and what you need to do to prepare for the upcoming Safeguards Rule changes.
4 Ways Car Dealerships Can Have Bank-Level Cyber Security
Here are 4 effective ways you can get security like a bank for your auto dealership:
1. Encrypt Sensitive Data
Encryption is a technique used to scramble data so that it can only be decrypted by someone with the right key. Banks encrypt sensitive customer data to protect it from theft or unauthorized access. Auto dealerships can use this same approach to secure customer information during storage and transmission like botdoc.io. This includes encrypting data stored on local computers and using end-to-end encryption in transit when sending/receiving PII from customers.
2. Regularly Monitor and Test Security Systems
Banks regularly monitor their security systems and perform regular penetration tests to identify any weaknesses. Auto dealerships can also perform regular security assessments to identify any vulnerabilities and take steps to address them. This includes monitoring for unusual network activity and testing the effectiveness of security systems.
3. Implement Data Backup and Recovery Procedures
Banks implement data backup and recovery procedures to ensure customer information can be restored in the event of a disaster or data loss. Auto dealerships can implement similar procedures to ensure customer data is protected in the event of a disaster or data loss. This includes regularly backing up customer data and having a plan in place to recover the data if needed.
4. Train Employees on Security Practices
Banks train their employees on security practices to ensure they understand the importance of protecting customer information. Auto dealerships can also train their employees on security practices, including the handling of sensitive information and the proper use of security systems.
Let Botdoc Solve Your Dealership’s End-to-End Encryption Issue
With the new revisions to the FTC Safeguards Rule, it’s more important than ever to ensure that you have the right measures in place to protect your customer’s sensitive information in transit and avoid consequences of hefty fines or losing consumer confidence.
The good news is that there is a solution that can help you meet these new requirements while also improving the customer experience and your dealership’s overall productivity.
Botdoc is a simple and easy-to-use platform that allows you to securely share sensitive data and files with your customers, via text, email and even social media. With its powerful end-to-end encryption, you can rest assured that your customer’s information is protected while in transit. In other words, getting PII from the consumer to the dealership is a snap while meeting the end-to-end encryption regulation.
And with Botdoc, you don’t need to worry about pins, passwords, logins, accounts, apps, or software to download. All of this can be done remotely, and it’s integrated with text messaging and emails so the process of meeting the new FTC standards will be seamless and work with your existing processes.
Here’s the best part– dealerships can be set up with Botdoc’s security solution within minutes. No need to set up complex or confusing systems to be compliant with the new FTC requirements.
By using Botdoc, you can not only meet the FTC Safeguards Rule with ease and confidence with your sales and operations staff, but your customers will appreciate the added security and convenience. Book a demo with Botdoc today and see for yourself how this powerful platform can revolutionize the way you do business.