Cyber security experts suggest the increasing use of digital and connected services has led to a rise in cyber attacks on businesses of all sizes.
It means that car dealers are susceptible to these threats, and consumers are deeply concerned about their data, according to Preet Saini, Manager of Stericycle, provider of Shred-it information security solutions. In an interview with Canadian auto dealer, Saini said the biggest finding in the 2019 Shred-it Data Protection Report is that companies think they are getting better at protecting sensitive information, but consumers are feeling otherwise.
“Consumers are twice as likely to report that their personal data security has declined,” said Saini. “So in 10 years (of doing the report), it’s doubled in terms of the confidence that consumers have in a company’s ability to secure their data and in securing their sensitive information.”
He said organizations appear to be doing a better job in recognizing the risk of data security issues facing their customers and their employees. “But they’re underestimating the consequences,” said Saini, adding that many businesses realize a data breach is going to happen, but several of them feel it’s not a big deal.
Many businesses realize a data breach is going to happen, but several of them feel it’s not a big deal.
Based on the Shred-it survey, 36 per cent of Canadians said they would lose trust in a company following a data/security breach, while one in four consumers would take their business elsewhere. Furthermore, they intend to spread the word: one in three consumers said they would actively tell other people about the breach if they were a victim of the incident.
However, the dominant consumer pool is filled with millennials and they are particularly less forgiving of these issues. Research shows that 43 per cent of millennials would lose trust in the company, 33 per cent would seek compensation, and 39 per cent would spread the word about the incident. For consumers aged 35 years and older, the percentages are lower, ranging from 18-33 per cent per category.
“The message should be clear to all Canadian businesses that data breaches are a big deal and that they can have a significant effect on their bottom line,” said Saini.
Shred-it also conducted a study on the automotive industry, which found that 96 per cent of all dealers surveyed agreed that they need to do more to show employees and consumers how they are protecting personal information.
“For me personally, two of the more surprising statistics that we found were that only 10 per cent of auto dealers are aware of legal requirements for handling confidential information,” said Saini. “In Canada, that should be relatively alarming because we only have three pieces of legislation that cover confidential information. And if only 10 per cent of auto dealers are aware of the legal requirements, we’re really not doing a very good job in training our employees as to what the legal requirements are.”
Furthermore, Saini said 31 per cent of auto dealers do not have a policy in place for storing and disposing of confidential documents. He also said that human error is the main cause of data breaches — though it is often unintentional, a result of people making mistakes due in part to a lack of understanding or uncertainty about what they should be doing with sensitive information.
More information about the different types of cyber attacks and what dealers can do to protect themselves can be found in the cyber feature on page 20 of this issue of Canadian Auto Dealer.
