Just when you think cybercriminals have exhausted their bag of tricks, they come up with new and creative ways to scam people. Their latest tactic involves faking data breaches to steal money from unsuspecting business owners and buyers on the dark web.
Earlier this year, Europcar, a French international car rental company, discovered a cybercriminal selling what appeared to be private information about its 50 million+ customers on the dark web. The company quickly launched a formal investigation, only to find that the data being sold was fake. The information had been fabricated, likely using generative AI.
How Are They Doing It?
With AI-powered tools like ChatGPT, cybercriminals can swiftly generate realistic-looking data sets. Savvy criminals conduct thorough research to create data sets that appear complete, with correctly formatted names, addresses, and emails, even including local phone numbers to enhance authenticity. They also use online data generators designed for software-testing purposes to produce large, fake data sets that look convincing. Once they have these fabricated data sets, they select a target from which they claim to have stolen the data and post the information on the dark web.
Why Are They Doing It?
Why would hackers 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: Diverting a company's attention to a supposed breach can cause it to lower its defenses elsewhere. The company might become so focused on finding the breach that it misses an attack from another angle.
- Bolstering Their Reputation: In the hacker community, reputation is crucial. Publicly targeting a well-known brand can earn hackers notoriety and recognition from other 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 panic can be exploited by cybercriminals to manipulate stocks for financial gain.
- Learning Security Systems: Faking a data breach allows cybercriminals to gain insights into a company's security processes, including how they prevent, detect, and resolve attacks. Understanding response times and security capabilities helps them refine their attack strategies.
Why Is This Bad For Businesses If The Data Is Fake?
Even if the data is fake, the damage can be significant by the time the public learns the truth. 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 quickly, tarnishing Sony's reputation. By the time the investigation revealed the hacker's claim was false, the damage to Sony's brand was already done.
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 yourself or have your cybersecurity team do it. If you find someone selling your data, investigate the claim immediately to minimize potential damage.
- Have A Disaster Recovery Plan In Place: Ensure your team knows exactly how to respond if a data breach occurs. Develop and fine-tune a communication plan in advance to be prepared for any eventuality.
- 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 how to detect, resolve, and prevent breaches can give you peace of mind and ensure that monitoring and disaster recovery plans are effectively managed.
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