T It’s Time To Be a Prepper! By Barrett “Barrie” Charapp Beaty, Esq., Charapp & Weiss LLP The hottest news of the year in the car industry was unfortunately the fact that CDK had a cyberattack that had dealers without a DMS system for weeks. There are still so many unanswered questions, and the true effects on the dealers are still unknown. Dealers persevered, as always, and adapted by handwriting deals and taking care of the customers because dealers adapt to any adversity thrown at them. It was a true testament of how dealers need to embrace modern technology while also savoring the need to know the old standard of selling vehicles … pen and paper! This article does not ponder what those dealers affected by the CDK outage should do, rather it’s a wakeup call for every dealer. What happened to CDK is not unique to CDK, and it happens to large and small companies on a daily basis. For those reasons, we write this article to identify steps you can take to be ready for the next cyberattack. 1. Safeguards Policy By law, your dealership must be Safeguards Rule compliant. This requires a Safeguards Policy to ensure that your dealership has the correct procedures in place. We highly recommend the NADA’s policy, “A Dealer Guide to the FTC Safeguards Rule,” as a template that should be geared towards your dealership. As required in the Safeguards Policy, your organization should have a data breach protocol in place, including who should be in charge in the event of a data breach. To view the NADA policy, scan the QR code. https://www.nada.org/nada/educationconsulting/driven-management-guide/dealerguide-ftc-safeguards-rule-l43 12 Virginia Auto Dealer
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