The Emerging Buzzword in Automotive Cybersecurity

The automotive industry is currently facing a significant wake-up call in the form of the CDK Global crisis. As a leading IT and digital marketing solutions provider to the automotive retail industry, CDK Global's recent cybersecurity breach has sent shockwaves throughout the sector, underscoring the critical importance of robust cybersecurity and data management practices. This incident has exposed vulnerabilities and highlighted the industry's urgent need to adapt and prepare for future threats. As a result, "resilience" is again required from automotive executives to find a way to survive and thrive! We are known for historically overcoming hurdles and coming out on top. This current problem, too, shall pass.

The CDK Global Crisis: A Lesson for All

The CDK Global breach has demonstrated that no organization, regardless of its size or reputation, is immune to cyber threats. The breach, which compromised sensitive data and disrupted operations across numerous dealerships, is a stark reminder of the potential consequences of inadequate cybersecurity measures. This crisis has reinforced the need for comprehensive strategies encompassing prevention, rapid response, and recovery. No one is safe in a world dominated by all things digital. It happens every day to multibillion-dollar companies as well as individuals. If you think making a switch will make a difference, remember that this can happen to anyone. The more we believe in technology, the more likely we will endure this problem.

The Concept of Resilience in Cybersecurity

Automotive dealers use resilience to continue to operate their businesses by selling and servicing vehicles in any possible way. Some dealers are working on pen and paper right now. Other dealers have multiple other tools. A dealer I am working with had leads rerouted to a special email address, and BDC reps are logging into third-party portals to work their follow-up. We also incorporated an AI tool that helps stop the clock and respond effectively. This also has helped us get creative with messaging and sending out text blasts to get prospects talking with us. Yesterday, while CDK and eLead CRM were down, we sold 10 cars (on a Wednesday)! My message to car dealers is that we will get over this! This is an opportunity to wake up and understand that there should be a backup for everything we do in the dealership. This is everything from lead management to scheduling tools to banking portals and everything in between. This is all in the context of cybersecurity, which refers to an organization's ability to anticipate, withstand, recover from, and adapt to adverse conditions, stresses, attacks, or compromises on its systems. For the automotive industry, this means building systems and processes that are not only designed to prevent breaches but also to ensure continuity and quick recovery when breaches do occur.

Key Components of Cyber Resilience

1. Proactive Risk Management: Dealerships need to implement proactive risk management strategies that include regular vulnerability assessments, penetration testing, and continuous system monitoring. This approach helps identify potential threats before they can cause significant damage. This can be part of the role of the marketing director, as they are generally in charge of overseeing most of the systems in place.
2. Comprehensive Incident Response Plans: Having a well-defined incident response plan is crucial. This plan should outline the steps immediately following a breach, including communication protocols, roles and responsibilities, and recovery procedures. Regular drills and simulations can help ensure staff are prepared to act swiftly and effectively. But have a monthly meeting and outline process as part of the dealership playbook (if you have one).
3. Data Encryption and Access Controls: Sensitive data must be protected through robust encryption and stringent access controls. Dealerships must ensure that only authorized personnel access critical systems and data. When employment is terminated, all access needs to be removed within one hour!
4. Employee Training and Awareness: Human error remains one of the leading causes of cybersecurity breaches. Regular training sessions on best practices, recognizing phishing attempts, and maintaining good cyber hygiene can significantly reduce the risk of breaches. Think about this for a minute. All major corporations have this in place, but why don't car dealers? Training on the process and the use of technology is essential and should be reviewed once per quarter.
5. Third-Party Vendor Management: As demonstrated by the CDK Global incident, vulnerabilities can also arise from third-party vendors. Dealerships must conduct thorough due diligence and continuous monitoring of their vendors' cybersecurity practices. Review these practices in writing when signing a partnership, and always be mindful that anything unpredictable can happen. While we do not want to have two vendors at once that offer the same type of service or product, we do want a partner who can make it easy to work with as part of the backup plan.

The Role of Data Management

Effective data management is a cornerstone of cyber resilience. This includes:

• Data Classification and Segmentation: Classifying data based on its sensitivity and segmenting it accordingly can help apply appropriate security measures.
• Regular Backups: Ensuring data is backed up regularly and securely stored can facilitate quick recovery in a breach.
• Compliance with Regulations: Following industry regulations and standards, such as GDPR and CCPA, can help dealerships maintain robust data protection practices.

Preparing for the Future

The CDK Global crisis is a crucial learning opportunity for the entire automotive industry. By embracing the concept of resilience, dealerships can better prepare for the unpredictable nature of cyber threats. Here are some steps dealerships can take to enhance their resilience:

1. Invest in Advanced Cybersecurity Technologies: Utilizing AI and machine learning for threat detection and response can provide an added layer of security. However, AI and machine learning also have the ability to see everything with the human eye.
2. Develop a Culture of Cybersecurity: Promoting a culture where cybersecurity is seen as a shared responsibility can help foster vigilance and proactive behavior among employees.
3. Collaborate with Industry Peers: Sharing information and best practices with other dealerships and industry associations can help improve the sector's cybersecurity posture collectively. Thanks to resources on social media and chat groups like Clubhouse with rooms like "All Things Car Biz," we can listen to and learn from industry peers like we did this morning! We discussed this topic today!

Conclusion

The automotive industry's response to the CDK Global crisis will likely define its cybersecurity strategies for years. By focusing on resilience, dealerships can protect themselves against current threats and build a robust foundation for future security challenges. As the saying goes, "It's not a matter of if, but when." Preparing now will ensure that the industry is ready to withstand, recover, and thrive when the next cyber crisis hits. We at Dealer eTraining continue to operate and serve our partners with their best interests at heart. We also have relationships with solutions that can help any dealer in need with any problem. Do not be surprised if new cybersecurity vendor partners start popping up, and future automotive conferences will have a larger focus on making this the industry buzz!