In our last interview, as part of a three-part series with Aura, an online safety solution that helps detect and mitigate emerging online threats, and Mosaic Compliance Services, a leading provider of compliance solutions for dealerships, we discussed identity theft and fraud. In part two of this Driving Solutions segment, we discuss law and compliance. We are pleased to welcome back Scott Hudson, SVP of Partnerships. auraand co-founder and CEO Jim Gunther Mosaic Compliance Services.
Key Takeaways
1. The discussion highlights the importance of complying with key regulations such as the Red Flag Rule and the Safeguard Rule to prevent identity theft and fraud, as failure to comply can lead to negligence lawsuits and class action lawsuits, posing serious financial risks to dealerships.
2. Additionally, a data breach can lead to significant legal and financial consequences, including class action lawsuits. Scott and Hudson emphasize that because hackers typically steal entire databases, dealerships are vulnerable to large-scale data theft and subsequent legal action.
3. The pending CARS rule will create new challenges for dealers, particularly the requirement to record F&I transactions, which will create new categories of sensitive data that must be protected and increase the risk of identity theft and fraud if not properly managed.
Four. The interview focuses on Aura’s comprehensive digital cybersecurity solutions designed to protect consumers from digital crime and fraud. These solutions integrate multiple safeguards, highlighting the importance of advanced technology in protecting sensitive information.
Five. Dealers are encouraged to consult with compliance experts to understand the complexities of the regulation and protect themselves from potential legal and financial repercussions. Proactive measures such as adhering to compliance guidelines and adopting cybersecurity solutions are highlighted as important steps to protect dealership operations and customer data.
“Dealers have an obligation to protect your data. They have an obligation to follow safeguard rules and red flag rules. If they don’t, they’re in breach of their obligations, and you’re hurt. You can sue the dealer for negligence.” – Jim Gunther