August 12, 2024
Just when you think cybercriminals have exhausted their bag of tricks, they come up with new, creative ways to scam people. The latest tactic involves faking data breaches to steal money from unsuspecting business owners and dark web data buyers.
Earlier this year, Europcar, a French international car rental company, discovered a cybercriminal selling what was claimed to be private information about its 50 million+ customers on the dark web. Upon launching a formal investigation, the company found that the data being sold was fake, likely generated using advanced AI tools.
How Did They Do It?
With AI-powered tools like ChatGPT, cybercriminals can quickly generate realistic-looking data sets. These savvy criminals do their homework, creating data sets that appear complete, with correctly formatted names, addresses, emails, and even local phone numbers. They also use online data generators designed for software-testing purposes to develop authentic-looking data sets. Once armed with this fake data, hackers target a specific company and post the information on the dark web, claiming it was stolen.
Why Are They Doing It?
Why would a hacker fake a data breach? There are several reasons, beyond the obvious benefit of avoiding the effort required to hack a network's security system.
- Creating Distractions: One effective way to make a company lower its defenses is to divert its attention to something else, like a supposed breach. The company will be so focused on investigating the fake breach that it may overlook a real attack from another angle.
- Bolstering Their Reputation: In the hacker community, reputation is crucial. Publicly targeting a well-known brand can earn them notoriety and recognition from other hacker groups.
- Manipulating Stock Prices: For publicly traded companies, even a rumor of a data breach can cause a rapid 3% to 5% drop in stock prices, leading to widespread panic. Cybercriminals can exploit this to manipulate stocks for financial gain.
- Learning Security Systems: Faking a data breach allows cybercriminals to gain insights into a company's security processes for preventing, detecting, and resolving attacks. Understanding a company's threat response time and security capabilities can help them refine their attack strategies.
Why Is This Bad For Businesses If The Data Is Fake?
By the time the public realizes the information is fake, the damage is already done. For instance, in September 2023, Sony was targeted by a ransomware group that claimed to have breached the company's network and acquired its data. The news spread quickly, tarnishing Sony's reputation. By the time the investigation concluded that the hacker's claim was false, the damage to Sony's name was irreparable.
What Can You Do To Prevent Fake Data Breaches?
To avoid falling victim to a fake data breach, consider these steps:
- Actively Monitor The Dark Web: Routinely monitor the dark web, either yourself or through your cybersecurity team. If you find an attacker selling your data, investigate the claim immediately to prevent extensive damage.
- Have A Disaster Recovery Plan In Place: Don't leave your team wondering what to do if a data breach occurs. Develop a communication plan in advance and refine it as needed.
- Work With A Qualified Professional: Focus on what you do best and leave IT-related issues to the experts. Partnering with a cybersecurity professional who knows what to look for, how to resolve issues, and how to prevent breaches will give you peace of mind and ensure that steps #1 and #2 are taken care of.
Data breaches can create enormous problems for your organization. Get ahead of the issue and have someone proactively monitor your network and the dark web to keep you secure. 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 (610) 433-1000 or click here to book your FREE Call With Our Owners
