Just when it seems cybercriminals have exhausted their bag of tricks, they come up with new, creative ways to scam people. Their latest tactic involves faking data breaches to steal money from unsuspecting business owners and dark web data buyers alike.
Earlier this year, Europcar, an international car rental company based in France, discovered a cybercriminal selling what appeared to be private information about its 50 million+ customers on the dark web. Upon launching a formal investigation, Europcar found that the data being sold was fake, likely generated with the help of advanced AI tools.
How Are They Doing It?
With AI-powered tools like ChatGPT, cybercriminals can quickly generate realistic-looking data sets. These savvy criminals conduct thorough research to create data sets that appear complete, featuring correctly formatted names, addresses, emails, and even local phone numbers. They also utilize online data generators designed for software testing to produce authentic-looking data sets. Once equipped with these fabricated data sets, hackers choose a target company and post the false information on the dark web.
Why Are They Doing It?
Why would a hacker fake a data breach? There are several reasons, beyond reaping the benefits without the effort of breaching a network's security.
- Creating Distractions: One effective way to lower a company's defenses is to divert its attention to a supposed breach. The company becomes so focused on locating the breach that it may miss an attack from another angle.
- Bolstering Their Reputation: Reputation is crucial within the hacker community. Publicly targeting a well-known brand can earn them notoriety and recognition from other hacker groups.
- Manipulating Stock Prices: For publicly traded companies, a data breach can cause a rapid 3% to 5% (or more) drop in stock prices. This can trigger widespread panic, allowing cybercriminals to manipulate stocks for financial gain.
- Learning Security Systems: Faking a data breach can provide cybercriminals with insights into a company's security processes. Understanding threat response times and security capabilities can help them refine their attack strategies.
Why Is This Bad For Businesses Even If The Data Is Fake?
By the time the public learns that the information is fake, the damage is already done. For example, 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 rapidly, tarnishing Sony's reputation. By the time the investigation concluded that the hacker's claim was false, irreparable damage had been done to their brand.
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: Regularly monitor the dark web either personally or through your cybersecurity team. If you find an attacker selling your data, investigate the claim immediately to mitigate damage.
- Have A Disaster Recovery Plan In Place: Ensure your team knows what to do and say if a data breach occurs. Develop this 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 understands what to look for, how to resolve issues, and how to prevent breaches can provide peace of mind and ensure that steps #1 and #2 are effectively managed.
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