Protecting Data in Business-Critical Systems: Why Secure Partnerships Matter

By Chris Wright, Vice President, Solera North Europe

In today’s digitally connected automotive retail landscape, data is more than just a byproduct of daily operations—it’s the fuel that powers business-critical systems, drives decision-making, and ensures regulatory compliance. As dealerships become more dependent on platforms like Dealer Management Systems (DMS), the security and integrity of their data have never been more important.

The Case for Secure, Contractual Data Partnerships

A structured, security-first approach to data management helps safeguard operations and mitigate risk. A cornerstone of that approach is using high-quality, legally sourced data—preferably through contractual agreements with trusted partners—rather than scraping information from the web.

Scraped data, often pulled without permission, can violate website terms of service and data protection laws such as the UK General Data Protection Regulation (GDPR). The consequences of getting this wrong are significant: Clearview AI, for example, faced a €30.5 million fine from Dutch regulators for GDPR breaches related to data scraping.

In contrast, data obtained via authorised partnerships offers multiple advantages:

• Legally compliant and transparent sourcing
• Structured, up-to-date, and reliable data
• Enhanced security through controlled access via APIs
• Better alignment with customer consent protocols

Risks of Poor Data Practices

Using unverified or scraped data isn’t just unethical—it’s dangerous. It increases the risk of:

• Ingesting inaccurate or malicious data
• Legal exposure due to privacy breaches
• Operational errors caused by inconsistent data formats

Scraped data lacks the oversight and audit trails of properly sourced data, leaving businesses vulnerable in case of misuse or breaches. There’s also reputational risk: using data from questionable sources can undermine customer trust.

Solera cap hpi’s Commitment to Secure Data

At Solera cap hpi, we’ve invested significantly in forming trusted data partnerships across the vehicle lifecycle. These collaborations ensure our customers have access to accurate, compliant, and secure information.

Our recent initiatives include:

• Integration of multi-source salvage data to support provenance checks
• A new partnership with EMaC to enhance vehicle mileage validation

By securing high-integrity data sources, we help dealers reduce risk while increasing operational efficiency.

Fortifying Your Dealership Against Cyber Threats

A dealership’s data security is only as strong as its weakest link. Here’s how to fortify it:

• Multi-factor authentication (MFA): Adds layers of protection beyond passwords.
• Data encryption: Secures information both in transit and at rest.
• Regular software updates: Close security gaps and patch vulnerabilities.
• Employee training: Equip your staff to identify phishing attempts and handle data responsibly.
• Proper data hygiene: Ensure personal data is deleted when no longer needed and handled in line with GDPR requirements.

Cloud-based solutions can offer enhanced features like real-time backups and centralised security protocols, making them a smart choice for forward-thinking dealerships.

Know the Regulations—and Stay Ahead

Dealers must stay informed about evolving UK data protection laws. The Information Commissioner’s Office (ICO) requires breaches to be reported within 72 hours, making rapid response plans critical. Regular security audits, penetration testing, and expert consultations can help proactively identify and address weaknesses.

The financial stakes are high. In 2024, the average cost of a data breach for UK organisations hit £3.58 million, according to IBM. For dealerships, a single breach could be devastating—not just financially, but reputationally.

Final Thoughts: Build Security into Your DNA

As data continues to drive innovation in the automotive industry, securing that data must be a top priority. Structured, ethical partnerships combined with robust internal security measures and staff training create a foundation that supports long-term success.

At Solera cap hpi, we’re committed to helping dealerships build trust, drive operational efficiency, and stay ahead of emerging cyber threats. The right approach to data isn’t just good practice—it’s a competitive advantage.

Ready to future-proof your dealership’s data strategy?

Get in touch with our experts to discover how Solera cap hpi can help you protect your platforms and grow with confidence: