In today’s digital landscape, dealerships collect and store some of the most sensitive customer information in any industry. With high-stakes financial transactions occurring daily, protecting this data isn’t just good business—it’s a regulatory requirement. As we explore the 10 Steps to Privacy and Safeguards Compliance, Step 5 stands out as one of the most practical and effective methods to test your information security program: Phishing Penetration Testing.

Why Phishing is Your Greatest Security Threat
When we talk about information security breaches at dealerships, one startling statistic stands out: 91% of all hacking attempts begin with phishing. These deceptive tactics—whether through emails, text messages (smishing), or other channels—represent the most common entry point for potential data breaches.
Phishing attacks typically appear as legitimate communications from trusted sources, tricking employees into:
- Clicking malicious links
- Downloading harmful attachments
- Revealing sensitive credentials
For dealerships, where staff handle financing applications, credit reports, and other personally identifiable information daily, a single successful phishing attempt could lead to devastating consequences—including regulatory penalties exceeding $55,000 per violation.

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The Value of Proactive Phishing Tests
One of the most effective ways to evaluate whether your information security program is working is through simulated phishing exercises. These tests measure whether your team can identify and properly respond to potential threats.
Simulated phishing tests involve sending carefully crafted mock phishing attempts to your staff that mimic real-world attacks. These tests might:
- Appear to come from a legitimate vendor
- Request urgent action on a seemingly important matter
- Contain elements that should raise suspicion to trained eyes
The goal isn’t to trick employees but to identify training gaps and strengthen your security posture through education.
The Training Difference is Measurable
The effectiveness of phishing awareness training is dramatic and measurable. Research consistently shows that:
- Employees who haven’t received formal phishing awareness training fail simulated tests approximately 30% of the time
- After proper training, that failure rate drops dramatically to around 4%
This represents a significant risk reduction that directly translates to better protection of sensitive customer information.
Implementing an Effective Testing Program
An effective phishing testing program should:
- Start with education: Before testing, ensure employees understand what phishing is and how to identify suspicious communications.
- Test regularly: Conduct exercises periodically rather than as one-time events.
- Vary attack simulations: Use different scenarios that reflect actual threats dealerships face.
- Follow up with targeted training: Provide immediate remedial education for employees who fail tests.
- Measure improvement: Track success rates over time to demonstrate program effectiveness.
How KPA Helps Dealerships with Phishing Protection
At KPA, we know that consistently testing your employees’ ability to recognize phishing attempts is crucial to maintaining a strong privacy and safeguards program. That’s why we provide comprehensive phishing protection services specifically tailored to automotive dealerships.
Our approach includes:
- Customized simulated phishing campaigns designed to mimic real-world threats targeting dealerships
- Immediate remedial training for employees who click on test phishing links
- Detailed reporting to help you track improvement and identify areas needing additional focus
- Industry-specific education that reflects the unique information security challenges dealerships face
Phishing penetration testing isn’t just about checking a compliance box—it’s about creating a culture of security awareness that protects both your customers’ data and your dealership’s reputation. By partnering with KPA, you gain access to proven testing methodologies and educational resources that significantly reduce your vulnerability to one of the most common and dangerous security threats facing dealerships today.
As you build your comprehensive privacy and safeguards program, remember that your employees are both your first line of defense and potentially your greatest vulnerability. Regular phishing tests and targeted training can transform this vulnerability into a powerful security asset.
Next Week, Let’s Look at Vendor Management
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