Auto dealerships are (or, at least should be) preparing for stricter compliance regulations with the FTC’s expanded Safeguards Rule taking effect June 9th. It's important to prioritize these new security efforts to protect customer information, but it’s not always easy. Here are the top 5 most common compliance pitfalls and ways to avoid them:
1️. Business on personal devices. Staff storing consumer information on their cell phones or non-business email accounts is a big no-no. Be sure your staff is only utilizing approved channels for client communication. 📵
2️. Not securely sending and receiving consumer information. Instead of asking customers to email or text information to salespeople (which is not compliant), send a secure link that allows them to upload the documents needed. 🔗
3️.Treating private consumer information like paperwork, when you should be treating it like gold. Leaving it exposed in unsecured locations, such as a desk or copier, is a recipe for theft. Leveraging a secure platform to digitize your physical documents is one way to help protect staff and customers. 🔒
4️.Tossing info sooner than you should. Dealerships are required to store dead deals for at least five years. That’s a ton of personal information that dealers are legally responsible for storing, protecting and proving that they’ve retained, so be sure you have systems or platforms in place to handle the stockpile. 📑
5️. Hope isn’t a reliable strategy. When it comes to compliance, dealerships can't just cross their fingers and think happy thoughts. Every dealership employee will need to ramp up their efforts to ensure a consistent and by-the-book process on every client exchange. Being busy, short-staffed, or ignorant of the rules just isn’t gonna fly with regulators. 🤞