FTC Safeguards Compliant
IT for Auto Dealerships
The FTC Safeguards Rule is not optional. Every auto dealer in America is now required to implement a comprehensive information security program or face enforcement actions, fines, and potential shutdown. If your dealership is not fully compliant, the clock is ticking.
Petronella Technology Group, Inc. has served 2,500+ organizations since 2002. BBB A+ accredited since 2003. Zero breaches among clients following our security program.
Why Auto Dealers Choose Petronella Technology Group, Inc.
Auto dealerships handle more sensitive customer financial data than most businesses their size. Social Security numbers, credit applications, bank account details, and driver's license information flow through your systems every single day. Protecting that data is now a federal requirement.
FTC Safeguards Compliance
The revised FTC Safeguards Rule requires auto dealers to implement specific, documented cybersecurity controls. We build and manage your entire compliance program from risk assessments and written security plans to encryption, access controls, and continuous monitoring, ensuring you meet every federal requirement.
Customer Data Protection
Every credit application, every financing deal, every trade-in appraisal contains sensitive customer information. We encrypt this data at rest and in transit, implement strict access controls, deploy data loss prevention systems, and maintain comprehensive audit trails so your customers' personal and financial information stays protected.
DMS Security
Your Dealer Management System is the backbone of your dealership operations. Whether you run CDK Global, Reynolds and Reynolds, DealerTrack, or another platform, we secure your DMS environment with network segmentation, endpoint protection, access controls, and monitoring specifically configured for dealership software ecosystems.
F&I Department Security
Your Finance and Insurance department handles the most sensitive data in your entire operation. Credit bureau pulls, loan applications, insurance documents, and payment information flow through F&I workstations daily. We implement dedicated security controls for F&I operations including encrypted workstations, restricted network segments, and enhanced monitoring.
The FTC Safeguards Rule: What Every Dealer Must Know
The Federal Trade Commission's revised Safeguards Rule under the Gramm-Leach-Bliley Act is now fully in effect, and it applies directly to every auto dealer in the United States. This is not a guideline or a suggestion. It is a federal mandate with real enforcement consequences. Dealers who fail to comply face FTC enforcement actions, significant fines, and potential injunctive relief that can disrupt your business operations.
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The revised rule requires auto dealers to designate a Qualified Individual to oversee their information security program, conduct written risk assessments, implement specific technical safeguards including encryption, multi-factor authentication, access controls, and continuous monitoring, develop incident response plans, provide security awareness training, and regularly test and assess the effectiveness of their controls. The rule also requires annual reporting to your board or senior management.
Many dealers have relied on their DMS vendor to handle security, but the FTC has made it clear that ultimate responsibility lies with the dealership itself. Your DMS vendor secures their platform, but your network, your endpoints, your employees' behavior, your physical security, and your overall compliance program are your responsibility. A DMS vendor agreement does not satisfy the Safeguards Rule.
At Petronella Technology Group, Inc., we serve as your dealership's cybersecurity partner and can function as or support your Qualified Individual. Led by Craig Petronella, a Licensed Digital Forensic Examiner and CMMC Certified Registered Practitioner with over 25 years of experience, our team builds complete FTC Safeguards compliance programs for auto dealers. We handle the risk assessments, implement the required controls, train your staff, monitor your systems, and prepare the documentation the FTC expects to see. Our 2,500+ client engagements and zero-breach track record speak for themselves.
Risk Assessment & Written Security Plan
The Safeguards Rule requires a written risk assessment that identifies threats to customer information and a security plan that addresses those risks. We conduct thorough assessments of your dealership's entire technology environment and produce the documented, audit-ready security plans the FTC mandates.
Encryption & Multi-Factor Authentication
The revised rule explicitly requires encryption of customer information both in transit and at rest, plus multi-factor authentication for any individual accessing customer data. We implement these controls across your entire dealership environment, from F&I desktops to manager tablets, without disrupting your sales workflow.
Continuous Monitoring & Testing
The FTC requires either continuous monitoring or annual penetration testing and biannual vulnerability assessments. Our continuous cybersecurity compliance program provides 24/7 monitoring, regular vulnerability scanning, and periodic penetration testing to keep your dealership ahead of evolving threats and in full compliance.
Employee Training & Awareness
The Safeguards Rule requires security awareness training for all personnel. We provide customized training programs for every department in your dealership, from sales floor associates handling customer IDs to F&I managers processing credit applications, with realistic phishing simulations and ongoing education tailored to auto dealer threat scenarios.
Complete IT & Cybersecurity for Auto Dealers
From FTC Safeguards compliance to day-to-day IT support, we deliver everything your dealership needs to stay secure, compliant, and operational under one managed services agreement.
FTC Safeguards Compliance Program
We build your complete FTC Safeguards compliance program from the ground up. This includes the required written risk assessment, information security plan, Qualified Individual designation or support, access control policies, encryption implementation, MFA deployment, change management procedures, incident response plan, vendor management protocols, and all required documentation. Our compliance packages are specifically structured for auto dealerships and address every element the FTC examines during enforcement investigations.
Network & Endpoint Security
Dealerships have complex network environments spanning sales floors, F&I offices, service bays, parts departments, and sometimes multiple rooftops. We deploy 39+ layered security controls including next-generation firewalls, network segmentation that isolates sensitive financial systems from guest and sales floor networks, endpoint detection and response on every workstation, AI-powered email filtering, DNS-layer protection, and 24/7 security operations center monitoring. Every vector is covered.
Managed IT Support
When your DMS goes down, every sale stops. When a printer fails in F&I, your customer is sitting in the chair waiting. Dealership IT issues are business emergencies. Our helpdesk provides responsive support customized to your dealership hours, including Saturdays. We proactively monitor all systems, manage workstations and printers, coordinate with your DMS vendor, maintain your network infrastructure, and handle every technical issue so your team can focus on selling and servicing vehicles.
Backup & Disaster Recovery
Ransomware attacks on auto dealers have surged. The CDK Global attack demonstrated how devastating a system shutdown can be for dealers dependent on technology. We implement encrypted, immutable, geographically redundant backup systems that protect your data from ransomware, hardware failure, and natural disasters. Our disaster recovery plans are tested regularly and designed to get your dealership back to full operations as quickly as possible.
Staff Security Training
Dealership employees are high-value phishing targets because they routinely handle customer financial data. Attackers impersonate lenders, manufacturers, and customers to trick staff into revealing login credentials or transferring funds. Our security awareness training is customized for dealership roles, from sales associates to service advisors to F&I managers, with realistic phishing simulations and department-specific threat education that satisfies FTC Safeguards training requirements.
Incident Response Planning
The FTC Safeguards Rule requires a written incident response plan. We develop and test your dealership's IRP, including procedures for containing breaches, investigating their scope, notifying affected customers as required by state laws, coordinating with law enforcement, managing public communications, and conducting post-incident remediation. We also conduct tabletop exercises so your management team knows exactly what to do when an incident occurs, not if.
How We Get Your Dealership Compliant
Our proven process takes your dealership from wherever you are today to full FTC Safeguards compliance, with minimal disruption to your sales and service operations.
Compliance Gap Assessment
We assess your dealership against every FTC Safeguards Rule requirement. We review your current IT infrastructure, DMS configuration, network architecture, security controls, employee practices, vendor relationships, and existing documentation. We identify every gap between where you are and where the FTC requires you to be. The result is a prioritized remediation roadmap with clear timelines and costs.
Security Implementation
We deploy the required technical controls: encryption, MFA, endpoint protection, network segmentation, access controls, intrusion detection, secure configurations, and continuous monitoring. We work around your dealership hours to minimize disruption. Your sales floor keeps selling. Your service bays keep operating. Meanwhile, your security posture transforms behind the scenes.
Documentation & Training
We develop all required compliance documentation: written information security plan, risk assessment reports, incident response plan, access control policies, vendor management procedures, and change management protocols. We train every employee on their security responsibilities. All documentation is audit-ready and organized for easy reference during FTC examinations or insurance reviews.
Continuous Compliance
Compliance is not a one-time project. The Safeguards Rule requires ongoing monitoring, regular testing, annual risk reassessment, and annual board reporting. We provide continuous compliance management including 24/7 monitoring, quarterly vulnerability assessments, annual penetration testing, updated risk assessments, refreshed training, and the annual report to your senior management that the FTC requires.
Cybersecurity Threats Targeting Auto Dealers
Auto dealerships face a unique and escalating threat landscape. Understanding these specific threats is essential for protecting your customers and your business.
DMS Platform Attacks
The CDK Global cyberattack demonstrated the catastrophic impact of DMS vendor compromise, shutting down thousands of dealerships nationwide. While you cannot control your vendor's security, you can control your own resilience. Dealerships with strong independent security programs, robust backups, and business continuity plans recovered faster and lost less revenue than those who were entirely dependent on their DMS vendor.
We build dealership-specific business continuity plans that account for DMS outages, ensuring your team can continue critical operations even during vendor-level incidents.
Wire Fraud & BEC
Business email compromise attacks targeting dealership accounting departments attempt to redirect payments to lenders, flooring companies, and vendors into attacker-controlled accounts. Dealers handling millions in monthly transactions are high-value targets. A single successful attack can cost a dealership hundreds of thousands of dollars.
We implement advanced email authentication (SPF, DKIM, DMARC), AI-powered impersonation detection, multi-factor authentication on financial systems, and specific training for accounting and office staff who process payments.
Customer Data Theft
Auto dealers collect the same data that banks do: Social Security numbers, dates of birth, employer information, income details, bank account numbers, and credit bureau reports. This data is extremely valuable on the dark web. A breach exposing customer financial data triggers state notification laws, potential class action lawsuits, regulatory investigations, and devastating reputational damage in your local market.
Our comprehensive data protection program encrypts customer data everywhere it exists, controls who can access it, monitors for unauthorized access attempts, and maintains the audit trails required by the FTC Safeguards Rule.
Why Auto Dealers Trust Petronella Technology Group, Inc.
Compliance is not something you can afford to get wrong. Your dealership needs a cybersecurity partner with the expertise, experience, and track record to get it right the first time.
Automotive Industry Experience
Since 2002, Petronella Technology Group, Inc. has served auto dealerships and understands the unique technology ecosystem that drives your business. We know CDK Global, Reynolds and Reynolds, DealerTrack, and the complex web of manufacturer portals, lender systems, credit bureau integrations, and third-party tools that dealerships depend on. Our team does not need to learn your industry. We already know it. When your DMS goes down or your credit bureau pull fails, we know exactly where to look and how to resolve it fast.
Zero Breaches Track Record
Among all clients who follow our comprehensive security program, we maintain a verified record of zero breaches. For a dealership handling thousands of customers' Social Security numbers and financial data, this track record is not a marketing bullet point. It is the difference between operating confidently and wondering when the next CDK-style disaster will hit your lot. Our defense-in-depth approach with 39+ security controls has been proven across 2,500+ client engagements over 23+ years.
Compliance-First Approach
Many IT providers treat compliance as an add-on. We put it front and center. Led by Craig Petronella, a CMMC Certified Registered Practitioner and MIT-certified cybersecurity professional with expertise across NIST, GLBA, and FTC regulatory frameworks, our team builds security programs that are compliant by design. Every control we implement maps directly to a regulatory requirement. Every policy we write references the specific rule it satisfies. When the FTC comes knocking, your documentation is ready.
Predictable, Transparent Pricing
Dealership GMs and controllers need to know exactly what IT and compliance will cost each month. Our managed services are delivered on a flat-rate model with no surprise invoices. IT support, cybersecurity monitoring, compliance management, security training, backup management, and vendor coordination are all included. You get a complete IT department and compliance program for a predictable monthly investment that is a fraction of what it would cost to hire even one qualified IT and compliance professional in-house.
FTC Safeguards Rule: Key Requirements Checklist
The revised Safeguards Rule contains specific, actionable requirements. Here is how Petronella Technology Group, Inc. addresses each one for your dealership.
| FTC Requirement | How Petronella Delivers |
|---|---|
| Qualified Individual | We serve as or support your Qualified Individual with Licensed Digital Forensic Examiner and CMMC CRP credentials |
| Written Risk Assessment | Comprehensive risk assessment with documented threat identification, likelihood analysis, and mitigation plans |
| Access Controls | Role-based access, least privilege enforcement, and regular access reviews across all dealership systems |
| Data Encryption | AES-256 encryption for customer data at rest and TLS 1.3 for data in transit across all systems |
| Multi-Factor Authentication | MFA deployed on all systems accessing customer information, with minimal workflow disruption |
| Continuous Monitoring or Testing | 24/7 SOC monitoring, quarterly vulnerability scans, annual penetration testing, and biannual assessments |
| Incident Response Plan | Written IRP with breach procedures, notification protocols, and regular tabletop exercises |
| Annual Board Reporting | Annual written report to senior management covering security status, compliance, incidents, and recommendations |
Frequently Asked Questions
Common questions auto dealers ask about FTC Safeguards compliance and cybersecurity.
Does the FTC Safeguards Rule really apply to my dealership?
Yes, absolutely. The FTC Safeguards Rule applies to all "financial institutions" under the Gramm-Leach-Bliley Act, which explicitly includes automobile dealers that arrange financing or leasing. If your dealership has an F&I department or arranges any form of consumer financing, you are covered by the rule. The revised requirements are now fully in effect, and the FTC has signaled increased enforcement activity targeting auto dealers specifically.
Does not my DMS vendor handle our security compliance?
This is the most dangerous misconception in the auto dealer industry. Your DMS vendor is responsible for the security of their platform and infrastructure, not yours. The FTC Safeguards Rule places compliance responsibility squarely on the dealership. Your network, your workstations, your employees' security practices, your physical security, your policies, your incident response plans, and your overall information security program are your responsibility. In fact, the Safeguards Rule specifically requires vendor management as one of its provisions, meaning you need to assess and document the security practices of your DMS vendor and other service providers.
What happens if we are not compliant with the FTC Safeguards Rule?
Non-compliance with the FTC Safeguards Rule can result in FTC enforcement actions, consent orders requiring specific remediation measures, civil penalties, and injunctive relief. Beyond FTC enforcement, a data breach at a non-compliant dealership exposes you to state attorney general investigations, class action lawsuits from affected customers, loss of manufacturer franchise agreements, dramatically increased cyber insurance premiums or policy cancellation, and devastating reputational damage in your local market. The cost of compliance is a fraction of the cost of non-compliance.
How long does it take to become compliant?
The timeline depends on your current security posture. A dealership with some existing controls in place can typically achieve compliance within 60-90 days. A dealership starting from scratch may need 90-120 days. We prioritize the highest-risk gaps first, implementing critical controls within the first 30 days while building out the complete program in parallel. Throughout the process, we maintain detailed documentation that demonstrates good-faith compliance efforts, which is important in the event of an FTC inquiry during your remediation period.
Do you work with CDK Global, Reynolds, and DealerTrack?
Yes. We have extensive experience working alongside all major DMS platforms including CDK Global (formerly ADP Dealer Services), Reynolds and Reynolds, DealerTrack, and others. We coordinate with your DMS vendor on network requirements, security configurations, and integration points. We do not replace your DMS vendor relationship. Instead, we fill the critical security and compliance gap that DMS vendors do not cover. Contact us at 919-348-4912 to discuss your dealership's specific needs.
Do you support multi-rooftop dealer groups?
Yes. We support single-location dealerships and multi-rooftop dealer groups. For groups with multiple locations, we implement consistent security policies, standardized compliance programs, centralized monitoring, and unified reporting across all rooftops. This approach ensures every location meets FTC requirements while reducing complexity and cost through economies of scale. Each location maintains its own documentation while rolling up to the group-level compliance program.
The FTC Is Watching. Is Your Dealership Ready?
Every day your dealership operates without a complete FTC Safeguards compliance program is a day of unnecessary risk. The FTC has increased enforcement activity against auto dealers. Customer data breaches are making headlines. The cost of non-compliance dwarfs the cost of doing it right.
Join the 2,500+ organizations that trust Petronella Technology Group, Inc. for their cybersecurity and compliance. Schedule a free FTC Safeguards gap assessment today and find out exactly where your dealership stands.
Petronella Technology Group, Inc. — 5540 Centerview Dr. Suite 200, Raleigh, NC 27606 — [email protected]