August 12, 2024
Just when you think cybercriminals have exhausted their bag of tricks, they find new and inventive ways to scam people. The latest trend involves faking data breaches to deceive both unsuspecting business owners and dark web data buyers.
Earlier this year, Europcar, an international car rental company from France, uncovered a cybercriminal selling what was claimed to be private information of over 50 million customers on the dark web. Upon launching a formal investigation, Europcar discovered that the data being sold was fake, likely generated using advanced AI tools.
How Do They Do It?
With AI-powered tools like ChatGPT, cybercriminals can quickly generate realistic-looking data sets. These savvy criminals conduct thorough research to design data sets that appear complete, featuring correctly formatted names, addresses, emails, and even local phone numbers. They also use online data generators meant for software testing to create large, authentic-looking fake data sets. Once armed with this data, hackers select a target and post the fabricated information on the dark web.
Why Are They Doing It?
Why would hackers go through the trouble of faking a data breach? There are several reasons, beyond the obvious benefit of avoiding the hassle of breaching a network's security system.
- Creating Distractions: One effective strategy to lower a company's defenses is to divert its attention to a supposed breach. The company becomes so focused on finding the breach that it may overlook an attack from another angle.
- Bolstering Their Reputation: Reputation is crucial in the hacker community. Publicly targeting a well-known brand can earn hackers notoriety and respect from other hacker groups.
- Manipulating Stock Prices: For publicly traded companies, news 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 measures, including how they prevent, detect, and resolve attacks. This knowledge helps them fine-tune their future attack strategies.
Why Is This Bad for Businesses If the Data Is Fake?
By the time the public learns that the information is fake, the damage is already done. For instance, in September 2023, Sony was targeted by a ransomware group claiming to have breached the company's network and stolen its data. The news spread rapidly, tarnishing Sony's brand. By the time the investigation revealed the claims were false, the damage to their reputation 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: Regularly monitor the dark web for any signs of your data being sold. If you find an attacker selling your data, investigate the claim immediately to mitigate potential damage.
- Have a Disaster Recovery Plan: Ensure your team knows exactly what to say and do in the event of a data breach. Develop this communication plan in advance and adjust it as necessary.
- Work with a Qualified Professional: Focus on what you do best and leave IT-related issues to cybersecurity experts. Partnering with a cybersecurity professional ensures that monitoring, investigation, and prevention are handled efficiently, giving you peace of mind.
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 (951) 742-8020 or click here to book your FREE Discovery Call with one of our cybersecurity experts.
