Over the past few years, the automotive industry has seen firsthand just how crucial cybersecurity is to keeping operations running.
The 2024 cyberattacks that disrupted retail automotive exposed the industry’s vulnerability to cybercrime, demonstrating how quickly an incident can disrupt day-to-day operations, cut profits, and damage reputations.
That spike in cyberattacks is no longer an anomaly.
Since then, cyberattacks have continued to evolve alongside dealership technology. In March 2026, there was a massive spike in malicious attacks that flooded the retail automotive industry, with attacks rising nearly 1,000 percent above pre-summer 2024 levels.
What does this trend mean for your dealership? Here are the key takeaways from the 2026 cybersecurity landscape.
AI as the Emerging Threat 
Cybercriminals increasingly use phishing, stolen credentials, and social engineering to gain access — all of which are made much more convincing with the help of generative AI. Rather than relying solely on software vulnerabilities, these attacks target trusted access. Guarding software vulnerabilities from the bad guys is still important, but it isn’t everything. If cybercriminals are more likely to infiltrate your dealership through phishing or social engineering attempts, then that area needs to be a primary focus.
This shift towards targeting trusted access has widespread implications for dealerships. Your employees interact with email, vendors, customers, payment systems, and countless digital tools every day. A convincing message or compromised account can provide an attacker with an opportunity to bypass some of the safeguards designed to keep them out.
Today’s cybercriminals can craft polished emails, mimic the writing style of trusted co-workers, and even clone voices or manipulate video — all with the help of AI. These tactics make it much harder to rely on traditional warning signs employees have been trained to recognize. 
The Limits of Multi-Factor Authentication  
Most dealerships have implemented Multi-Factor Authentication (MFA) to combat unauthorized access to sensitive information. While this is a recommended security control to have as part of your cybersecurity strategy, it can’t be the only one. Reports show that when compromised credentials were used to access a system, experts found MFA was deployed 97 percent of the time as a security measure.  
This doesn’t mean MFA isn’t necessary; it’s a vital security layer for dealerships. But on its own, it’s not enough to prevent a successful attack.  
The Cost of Cyberattacks 
You can’t talk about cyberattacks without talking about their cost.
The cost of recovery from a cyberattack continues to climb. According to industry experts, the average cost to recover from a ransomware attack reached $1.7 million in 2026, up from $1.5 million in 2025. And that figure doesn’t include any ransom paid. For dealerships, these expenses can add up quickly, especially when an attack disrupts sales, service, customer communications, or access to critical systems. 
Staying Ahead of Cyber Threats 
No single security measure can carry the burden of protecting your entire dealership. But a multifaceted approach can protect your dealership on every front:
  • Review who has access to your dealership’s system.  
    Know who can access critical systems, why they have access, and whether that access is still necessary. Monitor accounts for unusual activity rather than relying on authentication alone. 
  • Keep software and systems up to date with patches.  
    Outdated software and unpatched systems can create opportunities for attackers. Keeping systems current is a basic but critical part of reducing exposure. 
  • Routinely train your employees against social engineering and phishing scams. 
    Phishing and social engineering continue to be effective because they exploit trust. Ongoing training, testing, and clear reporting procedures can help employees recognize and respond to suspicious activity.  
  • Have an incident response and recovery plan.  
    A documented incident response and recovery plan should include clear roles, communication procedures, and an understanding of who to contact when an attack occurs. 
  • Partner with a cybersecurity expert that monitors threats 24/7.  
    Continuous monitoring can help identify suspicious activity that may otherwise go unnoticed, particularly as attacks occur outside traditional business hours and move faster than one dealership can reasonably monitor.
The cybersecurity landscape isn’t standing still. Cybercriminals are constantly looking for new vulnerabilities, stolen credentials, and opportunities to leverage AI to exploit dealership employees. As cyberattacks increase year over year, the answer isn’t a single technology, security tool, or training session. Rather, it’s an ongoing approach that combines strong access controls, updated systems, employee awareness, 24/7 monitoring, and a well-rehearsed response plan.
Is your dealership keeping up? Dive into our 2026 State of Cybersecurity Report for a closer look at emerging threats, evolving attack methods, and what your dealership needs to know.