Auto Dealers Look to Increase Security Measures Amid Rising Cyberthreats
November 10 2021 - 8:30AM
Business Wire
CDK Global Inaugural Dealership
Cybersecurity Report detects gaps in data protection plans
With rising concerns of ransomware and phishing attacks
impacting businesses across the U.S., nearly half of automotive
dealers surveyed plan to increase their investments in
cybersecurity in 2022, compared to only 24% of dealers that
invested in security measures in 2020, according to a study by CDK
Global, Inc. (Nasdaq: CDK), a leading automotive retail technology
company.
“Meeting consumer demand for online automotive retailing while
operating on an outdated framework can create a perfect storm for a
cybersecurity breach,” said Joe Bell, vice president of IT
Solutions and Global Network Architecture, CDK Global. “By adding
protective layers of security through integrated visibility and
monitoring tools, dealerships can mitigate their risk of lengthy
downtime for data recovery.”
IT-related business interruptions can be costly errors for
dealerships, impacting businesses an average of 16 days in lost
revenue if targeted by a cyberattack. Recovering from a data breach
and restoring a dealer’s reputation is both costly and time
intensive, and automotive retailers may fall prone to meeting
cybercriminals’ demands to keep their dealerships running. In fact,
recent data by ransomware specialty company Coveware shows that
payouts by businesses nearly quadrupled from 2019 to 2020, jumping
from nearly $44,000 to $169,000. CDK’s cybersecurity report
highlights the need for dealerships to put necessary preventative
measures in place to stem future incidents:
- While dealerships recognize there is an increased sense of
urgency to prioritize cybersecurity relative to other operational
areas (85%), only 49% believe they currently have adequate
protection against cyberattacks.
- Employee email phishing remains the biggest perceived threat to
dealer businesses (66%), but less than a third of employees have
received formal security training on how to avoid it. Additional
concerns include ransomware (48%) and malware (30%).
- A total of 65% of dealerships are regularly backing up data,
system images and configurations and keeping the backups offline,
but 73% are not testing their cyberattack incident response
plan.
“Investing in modernizing aging security products, educating
employees on increasingly sophisticated and frequent threats, and
solidifying disaster recovery plans before an incident occurs can
uphold a dealership’s reputation in the marketplace,” said Bell.
“If an automotive retailer’s cybersecurity plan for prevention,
protection and response is firmly in place, dealerships can focus
on strengthening the consumer buying experience while building
trust.”
About the CDK Global Inaugural Dealership Cybersecurity
Report
The CDK Global inaugural Dealership Cybersecurity Report was
conducted in June 2021 among a national sample of 135 dealerships.
The interviews were conducted online by CDK Research &
Insights. Participants included dealer executives, IT decision
makers and departmental influencers within the dealerships. To view
CDK’s Dealership Cybersecurity Report, please visit State of
Cybersecurity in the Dealership | CDK Global.
About CDK Global, Inc.
CDK Global (NASDAQ: CDK) is a leading provider of integrated
data and technology solutions to the automotive, heavy truck,
recreation, and heavy equipment industries. Focused on enabling
end-to-end, omnichannel retail commerce through open, agnostic
technology, CDK Global provides solutions to dealers and original
equipment manufacturers, serving nearly 15,000 retail locations in
North America. CDK solutions connect people with technology by
automating and integrating all parts of the dealership and buying
process, including the acquisition, sale, financing, insuring,
parts supply, repair, and maintenance of vehicles. Visit
cdkglobal.com.
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