FTC SAFEGUARDS & What It Means For Dealerships
The FTC is coming down hard on multiple industries and auto dealerships are in their crosshairs. On or before June 9th 2023, you must be compliant or you will run the risk of heavy financial penalties.
THE FINE PRINT
The Federal Trade Commission (FTC) Safeguards Rule is a set of updated regulations announced by in late 2021. It requires financial institutions, and Auto Dealerships to develop and implement a comprehensive information security program. It essentially has 8 unique areas associated with the guidelines
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You must be compliant or you will run the risk of heavy financial penalties.
This checklist will help you think through the 8 key areas you need to address to maintain compliance.
Review the questions below to see if your dealership is poised for success:
Do we have continuous monitoring in place to help keep our dealership data safe?
Who can access customer information? Are they documented and authorized?
How is our data stored? Where is our data transmitted? Is our sensitive data sprawled?
Is my sensitive data encrypted?
Do we have custom apps that we use and are they in scope with customer data sets?
Do we have multi factor authentication in place at our dealership?
Are we taking reasonable measures to protect consumer information by securely disposing of their data?
Do we have a process in place to comply with new regulations and equipment?
WHY IS THIS HAPPENING?
The FTC Safeguards Rule is an integral part of their efforts to protect the security, confidentiality, and integrity of customer-sensitive information from cyberattacks, identity theft, and other types of fraud. Beginning June 9, 2023, the FTC Safeguards Rule will go live where all financial institutions, including “non-banking financial institutions” like auto dealerships, will be required to prove compliance.
WHAT HAPPENS IF WE DON'T TAKE ACTION?
Failure to comply by June 9th could result in significant fines from the FTC. If your business is selling cars, don’t let June 9, 2023, get here before you achieve compliance. If you don’t feel like your dealership(s) is ready, we would love to have a complimentary conversation with you. If you choose not to use our services to gain compliance, that’s okay, just do it with someone that can help you navigate through the process to make sure you are compliant.