Compliance vs. Cybersecurity: What’s the difference?

You’ve probably heard the terms compliance and cybersecurity a lot lately (or have you been on a deserted island?). What do these terms actually mean? Are they the same thing? They are, in fact, not interchangeable terms. Compliance and cybersecurity are different, equally important, concepts.

Compliance

Compliance includes adhering to certain laws by documenting and organizing processes, reporting, and recordkeeping. In the United States, this is usually synonymous with the FTC. The FTC is a federal law enforcement agency that enforces customer protection and antitrust laws with the goal of protecting consumers. You’re probably most familiar with the FTC Safeguards Rule and its amendments that went into effect in June of 2023. One of the biggest missteps a dealership can make is to treat their compliance program the same as their cybersecurity or IT program.

The guidelines for documenting, reporting, and recordkeeping are outlined for you by the FTC. Think of this as the minimum requirement to stay in the government’s good graces, not the minimum requirement to have a secure dealership. Your dealership’s compliance program helps to assess potential risk and uncover possible holes in your security. All dealerships now have the responsibility to minimize cybersecurity risks.

Here are the main action items for cyber compliance:

• Review policies and procedures for potential gaps.
• Ensure recordkeeping.
• Conduct regular assessments.
• Complete all necessary disclosures and response plans such as annual reports, registration statements, and incident response.
• Report significant incidents.
• Monitor providers, access, and security plan effectiveness.
• Train all staff members on security awareness and reporting plans.

Cybersecurity

Cybersecurity is made up of the controls and tools put into place to protect the assets held by your dealership. This includes end-user devices, networks, cloud assets, applications, and, most notably, data. Cybersecurity ranges from software to third party firms to employee training. While complex, cybersecurity boils down to your security strategy, how you manage it, and how you train and communicate with your staff.

Here are the main components of good cybersecurity:

• Threat Prevention: Implementing measures such as firewalls, antivirus software, and intrusion detection systems to block or mitigate attacks.
• Detection and Response: Using monitoring tools and protocols to identify and respond to breaches quickly.
• Recovery: Setting up data backup and disaster recovery plans to restore operations after an incident.
• User Education: Training employees on best practices to recognize and avoid potential threats.

The cyber landscape is evolving all the time. It’s an ongoing, dynamic effort to defend your business against new types of attacks, and now more than ever dealers are partnering with vendors or third-party applications to bolster these efforts. Your dealership is best secured not by one specific vendor or product but by using a combination specific to your business. Having a knowledgeable team of experts watching your data in tandem with updated software and security-conscious employees will make a world of difference in the event of a cyber incident at your dealership.

The Intersection of Cybersecurity and Compliance

Despite their differences, cybersecurity and compliance are interconnected. A robust cybersecurity strategy often supports compliance efforts, and achieving compliance typically requires implementing certain cybersecurity measures. You strike a balance, ensuring they are both secure against threats and compliant with regulations.

In conclusion, compliance must be done for the sake of the government and does provide a basic level of protection to your dealership. Cybersecurity must be done for the well-being and preservation of your and your customers’ data. They are complementary elements of a holistic approach to protecting you and your customers. Cybersecurity is dynamic and evolves through new threats, whereas compliance is more static and procedural.

Demonstrating a commitment to both will enhance customer trust and protect your organization. Going beyond FTC mandates will give you the peace of mind that your business is prepared in case of a breach.