In the wake of recent cyber-attack threats and ransomware events, data privacy concerns have never been more top-of-mind for automotive dealerships and the entire industry. As auto dealers increasingly rely on digital platforms for customer transactions, especially coming out of the pandemic (COVID?), the need for robust data privacy strategies has become paramount.

However, many auto dealers continue to operate on legacy philosophies, and with an “I’ll deal with it if I have to” mindset. Because of this, many are lagging in creating effective data privacy strategies, particularly concerning data in transit during customer transactions. It’s important that dealers understand a new concept called secure digital transport (SDT), why it is essential, and why dealers must prioritize these strategies to protect their customers and businesses.

Understanding secure digital transport (SDT) of data

Data in transit refers to data actively moving from one location to another, such as across the internet or even through a private networks. This data is often transmitted between devices, systems, and applications. Ensuring the secure transport of data involves protecting it from interception, unauthorized access, and tampering during its journey.  It can simply be defined as the difference between “sharing” and “sending”.  Sharing implies a traditional login, passwords, pins, apps and software to download, increasing friction for customers and employees.  Conversely “sending” can eliminate all of those issues, more synonymous with two packages are mailed.  “Sending” is the underlying theme of how SDT works.

SDT can be achieved through various methods, including:

1. Encryption: Encrypting data before it is transmitted ensures that even if the data is intercepted, it cannot be read without the decryption key.
2. Secure Protocols: Using secure communication protocols like HTTPS, SSL/TLS, and VPNs helps protect data during transmission by providing a secure channel.
3. Authentication: Verifying the identities of the entities involved in the data exchange ensures that data is sent and received by legitimate parties.
4. Integrity Checks: Implementing integrity checks, such as using checksums or digital signatures, ensures that data has not been altered during transit.
5. Tracking: being able to tag and track every aspect of a transport allows for data analytics, business intelligence and better visibility. 

The current state of data privacy in auto dealerships

Despite the clear need for secure data transport strategies, many auto dealerships are behind in implementing these measures. The reality is that many auto dealers are still not fully aware of the risks associated with data in transit or the methods to secure it. This lack of awareness has led to inadequate or outdated data privacy practices.

Most auto dealerships today still prioritize sales and customer experience over data privacy. While enhancing the customer experience is important, neglecting data privacy can have long-term detrimental effects. It’s alarming how many customer-facing personnel at dealerships utilize their own unsecure mobile device environments for the transfer of sensitive customer data. This occurs because it is easier to handle customer data in this method, rather than operate under strict data transfer protocols available today.

Strategies for dealers to enhance data privacy

To address these challenges and ensure the secure data in transit, auto dealerships should consider a variety of strategies such as educating employees about the importance of data privacy and the risks associated with data in transit. Regular training sessions can help employees understand and implement best practices for data security.

Leading auto retailers are partnering with advanced data solutions providers to build systems where retailers and their employees can transport data and documents in and out of their systems without anyone ever needing to login into the system.

In this environment, an API determines the optimal destination based on tracking metadata and business rules. Workflow automation increases operational efficiencies and reduces costs involved. Additionally, compliance is simplified with less manual human touchpoints.

Dealers should leverage state-of-the-art encryption methods to protect data during transmission and ensure that all sensitive data is encrypted before it is sent over any network. They can use secure protocols like HTTPS, SSL/TLS, and VPNs for all data transmissions, while regularly updated and maintaining these protocols to protect against emerging threats. Other dealerships will choose technologies that leverage SDT protocols making the use easier and ensuring better adoption by dealerships.

Leading dealers work with outside experts to perform regular security audits to identify vulnerabilities and assess the effectiveness of existing data privacy measures so they can address any identified weaknesses promptly. These outside cybersecurity experts design and implement robust data privacy strategies and can provide access to specialized knowledge and resources that may be lacking in-house.

New tools being used by leading dealers

New technology solutions are available today to provide a secure way for dealers to transport confidential information with end-to-end encryption. These solutions provide an easy, secure and efficient way to exchange information to ensure compliance and create operational productivity.

SDT, when in use, employees at a dealership can send and collect customer documents securely without passwords or logins through a secure link that can be used in email signature blocks, text shortcuts and even through social media. Additional functionality auto populates customer information straight into the CRM without having to enter data manually. What’s more, customer documents (drivers’ license, insurance, stips, etc.) are automatically appended to the customer’s profile in the CRM securely, eliminating additional steps and friction for the dealership employees.

SDT is a critical component of the data privacy strategies for auto dealerships today, especially in the wake of recent cyber threats. As the automotive industry continues to embrace digital transformation, dealerships must prioritize data privacy to protect customer information, comply with regulations, prevent financial losses, and safeguard their reputation.

About The Author: Karl Falk is the Founder and CEO of Botdoc, a company that allows organizations to employ a secure and encrypted channel with consumers to exchange documents, signatures, payments and other capabilities without the traditional challenges of passwords, apps, logins or plugins. For more information please visit www.botdoc.io.