A Rising Tide of Cyberattacks
Dealerships are currently facing a new wave of cyberattacks following the recent CloudStrike outage.
In late July, CloudStrike, a cybersecurity company based in Austin, Texas, was the target of a cyberattack that disrupted multiple industries, including banks and airlines, worldwide. While this incident did not directly target auto dealers, it has created opportunities for cybercriminals to exploit dealerships with phishing scams and malware. Reports of attempted breaches on dealership systems and compromised consumer data have surged.
Matthew Groves, CEO and President of the Colorado Automobile Dealers Association, shares insights on the CloudStrike cybersecurity breach and offers guidance on safeguarding your dealership.
How These Attacks Work
Cybercriminals are sending emails that appear to come from legitimate sources, such as customer service or representatives from Original Equipment Manufacturer (OEM) companies. These emails often contain urgent requests, such as asking recipients to file reports or download security patches. However, clicking on the embedded links or attachments installs malware, allowing hackers to infiltrate dealership systems and access sensitive customer information.
The Stakes Are High
Unlike the broader impact of the CDK breach, these attacks are highly targeted and personalized, making them more challenging to detect and defend against. If successful, these cyberattacks can result in severe financial losses, reputational damage, and legal liabilities for dealerships.
What Dealers Need to Know
- Increased Vigilance: Be on high alert for suspicious emails and avoid clicking on unfamiliar links.
- Notification Requirements: Dealers are required to notify both the Federal Trade Commission (FTC) and affected consumers if any individual data has been compromised.
- Employee Training: Regularly educate your staff on the latest cyber threats and how to identify phishing attempts.
- Incident Response Plan: Develop a comprehensive response plan for data breaches, including clear notification procedures for both the FTC and affected customers.
- Utilize Resources: Take advantage of resources provided by the National Automobile Dealers Association (NADA), including a list of compromised websites and an upcoming webinar on cyberattack preparedness.
Proactive Steps for Protection
The frequency and severity of cyberattacks are increasing. By taking proactive steps to protect your dealership, you can reduce the risk of falling victim to these threats. Stay informed, train your employees, and be prepared to respond to incidents promptly.
CloudStrike Breach Impact on Colorado Auto Dealers
To learn more about the CloudStrike breach and its impact on your dealership, watch the video below, where Matthew Groves explains the details and what actions you need to take.
Stay in the Loop: Sign Up for Our Weekly Newsletter
Ensure you’re always informed by subscribing to our email newsletter. It’s your source for the latest legislative developments, industry updates, trends, and more within the Colorado vehicle industry. Receive essential news directly in your inbox and stay connected with CADA’s initiatives and advancements.
Don’t miss out on critical updates about cybersecurity breaches and other important changes affecting your dealership. Subscribe now to stay ahead and keep your business compliant and thriving.
About The Colorado Auto Dealers Association (CADA)
Founded in 1933 and officially incorporated in 1938, the Colorado Automobile Dealers Association (CADA) began as a collective effort by dealers to contest a federal excise tax. Today, CADA is a dynamic trade association dedicated to advocating for the interests of Colorado’s auto dealers. It addresses legislative, regulatory, and operational challenges, ensuring that the state’s automotive sector and driving public are well-represented and supported.
CADA keeps dealers well-informed through various channels, including our publications, such as Above the Fold, the Bulletin, and our LinkedIn updates. CADA also provides essential resources to help dealers understand new legislation and industry trends, especially after the legislative session concludes each May.