Safeguards Rule Requires Auto Dealerships to Do Third-Party Risk Management
May 20, 2025
Auto dealerships rely heavily on third-party vendors to operate efficiently. However, each third-party relationship introduces potential vulnerabilities. A cyberattack targeting a vendor could easily compromise sensitive customer information, even if your dealership's internal systems are secure.
That’s why the Safeguards Rule mandates:
Due diligence before hiring vendors
Regular risk assessments of third parties
Clear contractual obligations requiring vendors to safeguard customer data
Ongoing monitoring to ensure vendors maintain security standards
Neglecting any of these steps could make your dealership non-compliant — and a prime target for cybercriminals.
How SkyBlackBox Helps Auto Dealerships Comply
At SkyBlackBox, we understand the unique challenges auto dealerships face in managing third-party risks. Our specialized services offer a seamless path to compliance:
Vendor Risk Assessments: We evaluate your third-party vendors for cybersecurity posture, data protection practices, and compliance gaps.
Continuous Monitoring: Our real-time monitoring alerts you to emerging threats from vendors or partners.
Contract Review Support: We help you ensure contracts include necessary cybersecurity clauses, keeping you legally protected.
Comprehensive Reporting: With detailed audits and documentation, you’ll have everything you need for regulatory inspections.
We make Third-Party Risk Management simple, effective, and tailored for the automotive sector.
Steps Auto Dealerships Should Take Now
Inventory Your Vendors Identify every third party that accesses, processes, or stores customer data. This includes technology providers, finance companies, cloud storage services, and outsourced service centers.
Assess Vendor Security Evaluate the security measures each vendor has in place. Look for vendors with recognized certifications like SOC 2 or ISO 27001, and ask for proof of their cybersecurity practices.
Update Contracts Make sure contracts clearly require vendors to implement appropriate safeguards, notify you of breaches, and cooperate during audits or investigations.
Monitor Regularly Don’t stop at onboarding. Implement ongoing monitoring of vendor performance and cybersecurity practices to catch problems early.
Partner with Experts Managing all of this internally can be overwhelming. Partnering with a provider like SkyBlackBox ensures you have the tools, technology, and expertise needed for full compliance.
Final Thoughts
The Safeguards Rule represents a major shift in how auto dealerships must think about cybersecurity and vendor relationships. Compliance isn’t just about protecting your business — it’s about protecting your customers and preserving your reputation.
With SkyBlackBox by your side, you can confidently meet the challenges of Third-Party Risk Management. Our mission is to empower businesses like yours with the cybersecurity strength and compliance support needed to thrive in a digital-first world.
Don't leave your dealership exposed — start securing your third-party relationships today.