Just when you think cybercriminals have exhausted their bag of tricks, they manage to innovate and catch you off guard. Their latest tactic involves fabricating data breaches to deceive both unsuspecting business owners and data buyers on the dark web.
Earlier this year, Europcar, a global car rental company based in France, discovered that a cybercriminal was selling 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. The information had been falsified, most likely with the aid of generative AI.
How Do They Do It?
AI-powered tools like ChatGPT enable cybercriminals to quickly generate realistic-looking data sets. Savvy criminals conduct thorough research and create data sets that appear complete, with correctly formatted names, addresses, and emails, even including local phone numbers. They also use online data generators designed for software-testing purposes to produce large, authentic-looking data sets. Once these are ready, hackers 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 a hacker fake a data breach? There are several reasons, beyond simply reaping the benefits without the effort of hacking a network's security system.
Creating Distractions. One effective way to weaken a company's defenses is to divert its attention. By focusing on a supposed breach, the company may overlook an attack from a different angle.
Bolstering Their Reputation. Within the hacker community, reputation is crucial. Targeting a well-known brand publicly 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, including prevention, detection, and resolution. Understanding threat response times 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 learns that 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 breach made headlines, tarnishing Sony's reputation. By the time the investigation revealed that the hacker's claim was false, irreparable damage had been inflicted on their brand.
What Can You Do to Prevent Fake Data Breaches?
To avoid falling victim to a fake data breach, consider the following steps:
Actively Monitor the Dark Web. Ensure that you or your cybersecurity team routinely monitor the dark web. If you discover 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 say if a data breach occurs. Develop a communication plan in advance and fine-tune it if or when a breach happens.
Work with a Qualified Professional. Focus on what you love to do 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 take tasks off your plate, give you peace of mind, and ensure that steps #1 and #2 are covered.
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