Latest news with #SafeguardsRule
Yahoo
2 days ago
- Automotive
- Yahoo
FTC reminds car dealers to protect customer data
This story was originally published on Cybersecurity Dive. To receive daily news and insights, subscribe to our free daily Cybersecurity Dive newsletter. Dive Brief: The Federal Trade Commission on Monday warned auto dealers that recently updated regulations require them to protect customer data. The FTC modernized the Safeguards Rule twice in the past five years, and now it wants car dealers to understand their responsibilities. The guidance reflects the commission's continued interest in protecting driver privacy, despite the change in political leadership following President Donald Trump's election in 2024. Dive Insight: The Safeguards Rule, mandated in a 1999 law, is one of the FTC's core cybersecurity regulations. The commission updated the regulation in 2021 to require more specific security precautions from covered companies, and in 2023, it broadened those requirements to include notifications within 30 days of data breaches affecting at least 500 people. Among the covered industries: car dealers that offer financing to customers. In a Frequently Asked Questions document, the commission explained how car dealers should comply with the rule's requirements to 'develop, implement, and maintain a comprehensive written information security program that is sufficient to protect customer information.' The document describes 10 elements of a compliant program, including written risk assessments, regular evaluations of protective measures, employee training, third-party vendor oversight and incident-response plans. The document explains the difference between compliance with the Safeguards Rule and the Privacy Rule, answers questions about potential dealership practices and describes how dealers must ensure that their third-party service providers comply with the law. The security and privacy of car customers' data — especially the reams of sensitive information collected by cars themselves — has become a pressing issue as vehicles incorporate more internet-connected technology. Tesla's car privacy issues have garnered significant attention, but other carmakers have also faced scrutiny, including General Motors, whose customers sued it in August 2024 for selling their driving data without notice. The FTC has pursued cybersecurity and privacy cases more vigorously under Democratic leadership, but Republicans have grown increasingly willing to hold companies accountable for mishandling data. The Texas attorney general's office has been scrutinizing car companies' sale of driving data to third parties, including insurance companies. In January, the office sued the insurer Allstate as part of that investigation.
Yahoo
27-01-2025
- Automotive
- Yahoo
Connexion Mobility ties up with Modives on insurance verification
Automotive company Connexion Mobility has teamed up with insurance verification and monitoring company Modives to bring identity and insurance verification to the automotive space. Connexion Mobility's network of dealership customers can now improve their risk management for courtesy fleets. According to the company, outdated verification processes result in various costs including vehicle downtime, repair expenses, business interruptions and liability risks. Moreover, recent updates to the Federal Trade Commission's Safeguards Rule now impose new compliance obligations on auto dealerships, OEMs and lenders. Failure to meet these requirements, including proper verification of insurance coverage, can lead to fines of up to $51,744 per violation. CheckMy Driver, Modives' patent-pending insurance verification app, along with CheckMy ID represent a secure, automated, real-time solution for insurance and identity verification, meeting new compliance requirements. The system helps protect customer data and reduce dealership liability. This partnership integrates CheckMy Driver and CheckMy ID into Connexion Mobility's fleet and rental management platform to improve operational efficiency for dealers. The integration is said to enhance efficiency in operations, reduce risk and result in better consumer experience with Express Check-in and a higher dealer Customer Satisfaction Index (CSI) rating. By using insurance and identity data, dealerships can identify sales opportunities for upgrades, new cars and products such as warranties and vehicle service contracts (VSCs). Connexion Mobility CEO Aaryn Nania said: 'By turning routine transactions into strategic opportunities, we are not only enhancing customer experiences and protecting OEMs and dealers' businesses but also helping our dealers uncover new revenue potential. CheckMy Driver and CheckMy ID are the perfect complement to our mission of delivering valuable innovation to the automotive industry.' Modives CEO Fred Waite stated: 'By integrating CheckMy Driver and CheckMy ID into their dealers' workflows, Connexion not only empowers dealers to mitigate risks but also leverages the resulting unique customer data for revenue-generating activity.' "Connexion Mobility ties up with Modives on insurance verification " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
