Auto Industry’s Cybersecurity Pitfalls: More Holes than Swiss Cheese & A Bigger Laugh Than a Comedy Show!

Despite 90% of auto retailers having cybersecurity plans, 17% still experienced a cyberattack this year. The dealership cybersecurity challenges are as complex as a car engine – with phishing scams in the driver’s seat and employee unawareness riding shotgun. Time to change gears, folks, and invest more in driver (employee) education!

Hot Take:

So, you’re telling me that despite most auto retailers finally getting their cybersecurity plans in gear, they’re still getting their digital lunch money stolen by cyber bullies? Looks like it’s not just the cars that need upgraded security systems. Extra sad trombone sound for the fact that employee unawareness is the second biggest threat – proof that even in 2023, humans are still the weakest link in the chain. But hey, at least ransomware is raking in the dough, right? Wrong! Time to pump the brakes, folks. We need to steer this situation in another direction, and fast.

Key Points:

  • 90% of auto retailers have cybersecurity plans, yet 17% still experienced a cyberattack in the past year.
  • Email phishing scams are the top threat, followed by poor employee awareness.
  • The average cybercriminal payout increased from $44,000 in 2019 to $740,144 in 2023, causing significant downtime and financial losses.
  • 75% of dealers who updated security policies to meet the FTC’s June 2023 compliance deadline are already seeing improvements.
  • Over 50% of auto retailers will be increasing the cybersecurity budget and utilizing managed service providers.

Need to know more?

Pit Stop: The State of Cybersecurity

CDK Global's survey is showing some alarming trends. Cybercriminals are evolving faster than the latest Tesla model, with email phishing scams still holding the pole position as the top threat for the third year running. And employee unawareness has climbed from fourth to second place over the past two years. It's clear that dealerships need to invest more in driver (employee) education.

Detour: The Cost of Cybercrime

The financial hit of cybercrime is increasing faster than a Bugatti on an open road. The average payout has shot up from $44,000 in 2019 to a whopping $740,144 in 2023. This has led to an average downtime of 3.4 weeks, with a quarter of affected retailers unable to retrieve the stolen data. It seems the cybercriminals are leaving everyone else in the dust.

Final lap: Steering towards a Solution

There's a glimmer of hope on the horizon. 75% of dealers who have updated their security policies to meet the FTC’s June 2023 compliance deadline are reporting improvements. This is largely due to appointing a qualified individual to oversee cybersecurity and implementing ongoing training for employees. Plus, over half of auto retailers are set to increase their cybersecurity budgets and employ managed service providers. So, although it's been a bumpy ride, it looks like the auto industry is finally getting into the right gear.
Tags: Automotive Retailers, Cybercrime, cybersecurity policies, Data Breaches, data theft, , Employee Awareness Training, ransomware