Just when you think cybercriminals have exhausted their bag of tricks, they find new ways to deceive. Now they’re faking data breaches, aiming 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 company immediately launched a formal investigation, only to find that the data being sold was fake. The information was falsified, likely with the help of generative AI.
How Did They Do It?
With AI-powered tools like ChatGPT, cybercriminals can quickly generate realistic-looking data sets. These smart criminals do their research and design data sets that appear complete, with correctly formatted names, addresses, and emails, even including local phone numbers. They also use online data generators to create large, fake data sets designed for software-testing purposes, making them look authentic. Once they have these fake data sets, hackers choose a target to claim they have stolen the data from and post the information on the dark web.
Why Are They Doing It?
Faking a data breach offers cybercriminals several advantages without the hassle of hacking a network’s security system.
Creating Distractions: One of the best ways to get a company to lower its defenses is to focus on something else, like finding a breach in its system. The company will be so intent on locating the supposed breach that it may miss an attack from another angle.
Bolstering Their Reputation: Reputation is highly valued within the hacker community. Targeting a well-known brand publicly is a way for them to earn notoriety and get noticed by 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 cause widespread panic, allowing cybercriminals to manipulate stocks for financial gain.
Learning Security Systems: Faking a data breach allows cybercriminals to gain insight into the company’s security processes to prevent, detect, and resolve attacks. Knowing threat response times and security capabilities can help them fine-tune their attack strategy.
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 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 breach was widely reported, and by the time the investigation concluded that the hacker’s claim was false, irreparable damage had been done to Sony’s reputation.
What Can You Do to Prevent Fake Data Breaches?
To avoid being the victim of a fake data breach, follow these steps:
Actively Monitor the Dark Web: You or your cybersecurity team should routinely monitor the dark web. If you encounter an attacker selling your data, investigate the claim immediately to prevent extensive damage.
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.
Work with a Qualified Professional: You are in business to do what you love, 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 ensures that monitoring and recovery plans are handled.
Data breaches can create enormous problems for your organization. Stay ahead of the issue by having someone proactively monitor your network and the dark web to keep you secure. If you want a no-obligation, third-party opinion on whether your network is vulnerable to an attack or properly secured, we’re happy to provide one for FREE. Call us at 985-871-0333 or click here to book your FREE Security Risk Assessment with one of our cybersecurity experts.
