Protect Your Dealership From Fraud and Cyber Threats Learn About the Latest Fraud and Cyber Threats, How To Defend Against Attacks and What To Do if You’re a Victim of Cybercrime Auto dealerships are attractive targets for fraud and other cyber threats. Adopt the mindset of a tech-savvy criminal and it’s easy to see why — dealerships have sizeable deposit balances, make frequent high-dollar transactions (i.e., ACH, checks and wire transfers), and have numerous employees who use systems with sensitive customer data. Dealer management systems contain a treasure trove of information that hackers can sell or use to commit other crimes: social security numbers, bank account information, credit applications and scores, and insurance data. And auto dealers’ information technology systems often lack the latest firewalls, updates and security patches, giving criminals an easy path to cyber fraud. Given the sluggishness of digital security measures adoption, hackers know the odds of a successful cyberattack on a dealership are high. Roughly half (47%) of dealers surveyed lack confidence in their level of cybersecurity protection.1 Similarly, 46% said their dealership had experienced a cyberattack in 2023 that negatively impacted business operations or finances.2 With threats so prevalent, dealers must work to better understand the complex fraud and cyber threat landscape — and adopt proactive strategies to effectively mitigate their risk. UNDERSTAND THE VARIED THREAT LANDSCAPE Although many types of fraud pose risks for auto dealers, payments fraud is most common. Four out of five organizations reported an attempted or completed payments fraud in 2023 — a 15% increase from 2022.3 Of those, 65% involved checks, making checks the most fraud‑prone form of payment. ACH debits were next at 33%, while fraudsters used wire transfers (24%), commercial credit cards (20%) and ACH credits (19%) somewhat less often. Business email compromise (BEC) is the primary source of attack for payments fraud.3 Relying on social engineering BY TRUIST DEALER SERVICES THE GENERATOR 26
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