Breaking the "Auto-Focused" Mindset: A Fresh Perspective on Data Privacy Solutions

One of the key challenges facing the automotive industry is the belief that only companies with deep automotive expertise can provide effective data privacy solutions. This mindset has limited the industry's ability to explore innovative approaches and learn from other sectors. The reality is that many of the data privacy challenges faced by the automotive industry are not unique. Other industries, such as finance and healthcare, have already developed effective solutions to similar problems, and their experience can offer valuable insights.

For example, financial institutions have implemented advanced encryption techniques to protect customer data in transit during transactions, while healthcare providers have developed sophisticated access controls to ensure that only authorized personnel can access sensitive patient information. These solutions can be adapted and applied to the automotive industry, helping dealerships and lenders to strengthen their data protection measures.

What’s more, collaborating with companies that have established themselves as leaders in data privacy — regardless of their industry — can bring fresh perspectives and new ideas to the automotive sector. By breaking out of the "auto-focused" mindset, the industry can leverage the expertise of companies in finance, healthcare, and other regulated sectors to develop more comprehensive and effective data privacy strategies.

This mindset is particularly needed for the topic of data in transit, where dealers, dealer salespeople and customer service agents often work with car shoppers during sales transactions or service repairs, and work to obtain personal information from customers in ways that reduce friction in the process. This sometimes takes the form of a simple text exchange of a driver’s license between a customer and a salesperson. However, this also means the data in transit is often unsecured.

Many auto dealers continue to operate on legacy philosophies, and with an “I’ll deal with it if I have to” mindset when it comes to ensuring data privacy compliance. Because of this, many are lagging in creating effective data privacy strategies, particularly concerning data in transit during customer transactions. It’s important that dealers understand a new concept called secure digital transport (SDT), why it is essential, and why dealers must prioritize these strategies to protect their customers and businesses.

Understanding Secure Digital Transport (SDT) of Data

Data in transit refers to data actively moving from one location to another, such as across the internet or even through private networks. This data is often transmitted between devices, systems, and applications. Ensuring the secure transport of data involves protecting it from interception, unauthorized access, and tampering during its journey. It can simply be defined as the difference between “sharing” and “sending.” Sharing implies traditional logins, passwords, pins, apps and software to download, increasing friction for customers and employees. Conversely, “sending” can eliminate all those issues, more synonymous with packages that are mailed. “Sending” is the underlying concept of how SDT works.

SDT can be achieved through various methods, including:

1. Encryption: Encrypting data before it is transmitted ensures that even if the data is intercepted, it cannot be read without the decryption key.
2. Secure Protocols: Using secure communication protocols like HTTPS, SSL/TLS, and VPNs helps protect data during transmission by providing a secure channel.
3. Authentication: Verifying the identities of the entities involved in the data exchange ensures that data is sent and received by legitimate parties.
4. Integrity Checks: Implementing integrity checks, such as using checksums or digital signatures, ensures that data has not been altered during transit.
5. Tracking: being able to tag and track every aspect of a transport allows for data analytics, business intelligence, and better visibility.

By learning from other industries and embracing a proactive approach to data privacy, the automotive sector can not only comply with regulations but also enhance its overall security posture. In doing so, it will build greater trust with customers, reduce the risk of data breaches, and position itself as a leader in the rapidly evolving digital landscape.