Just when it seems like cybercriminals have exhausted their list of scams, they come up with new and unexpected tactics. Now they’re faking data breaches, hoping to steal money from unsuspecting business owners and dark web data buyers alike.
Earlier this year, Europcar, an international car rental company from France, discovered a cybercriminal selling private information about its 50 million+ customers on the dark web. The car rental company immediately launched a formal investigation, only to find that the data being sold was fake. The information was falsified, most likely done with the help of generative AI.
How Did They Do It?
With AI-powered tools like ChatGPT, cybercriminals can easily create realistic-looking data sets. Smart cybercriminals do their research and design data sets that look complete, with correctly formatted names, addresses, and e-mails, and can even include local phone numbers to match. They will also leverage online data generators that can quickly create large, fake data sets designed for software-testing purposes to develop authentic-looking data sets. Once they have these fabricated data sets, hackers choose a target and claim to have stolen its data, and then post the information on the dark web.
Why Are They Doing It?
What drives hackers to fake a data breach? There are a couple of reasons, besides reaping the same benefits without the work of hacking a network’s security system.
1.
Creating Distractions: One of the best ways to get a company to let down its defenses is to focus on something else, like finding a breach in its system. The company will be so intent on finding where a hacker was already able to get into its network that it will likely miss an attack from a different angle.
2.
Bolstering Their Reputation: Within the hacker community, reputation is incredibly important. Publicly targeting a well-known brand can help hackers earn recognition and respect from other hacker groups.
3.
Manipulating Stock Prices: For publicly traded companies, a data breach can cause a rapid 3% to 5% (or more) drop in the stock price. This can cause widespread panic, allowing cybercriminals to manipulate stocks for financial gain.
4.
Learning Security Systems: Faking a breach can allow cybercriminals to observe how a company’s security team responds to threats. By gaining insights into threat response times and security capabilities, they can better prepare and refine their tactics for future cyber-attacks.
Why Is This Bad For Businesses If The Data Is Fake?
By the time the public finds out that the data breach was fake, the damage is already done. For example, in September 2023, Sony was targeted by a ransomware group that announced it had breached the company’s network and acquired its data. Media outlets quickly picked up the story, leading to widespread negative coverage and damage to Sony’s reputation. Although the investigation eventually proved that the hacker’s claim was false, irreparable damage had been done to their name.
What Can You Do To Prevent Fake Data Breaches?
To avoid falling victim to a fake data breach, consider these proactive measures:
1.
Actively Monitor The Dark Web: Make sure you or your cybersecurity team routinely monitors the dark web. If you encounter an attacker claiming to sell your data, investigate the claim immediately to prevent extensive damage.
2.
Have A Disaster Recovery Plan In Place: Don’t let your team wonder what they should say if a data breach occurs. This communication plan needs to be developed in advance and fine-tuned if or when a breach occurs.
3.
Work With A Qualified Professional: You are in business to do what you love to do, not deal with IT-related issues. Working with a cybersecurity expert who knows what to look for, how to resolve issues, and how to prevent breaches takes tasks off your plate, gives you peace of mind, and will make sure that steps #1 and #2 are effectively managed.
Data breaches can create enormous problems for your organization. Stay ahead of potential threats by having continuous monitoring of your network and the dark web. If you want a no-obligation, third-party opinion on whether or not your network is vulnerable to an attack or properly secured, we’re happy to provide one for FREE. Call us at 847-906-5005 or click here to book your FREE Security Risk Assessment with one of our cybersecurity experts.
