August 12, 2024
Just when you think cybercriminals have exhausted their bag of tricks, they come up with new and inventive ways to scam people. Their latest tactic involves faking data breaches to deceive both unsuspecting business owners and dark web data buyers.
Earlier this year, Europcar, a prominent international car rental company from France, discovered that a cybercriminal was attempting to sell private information of its 50 million+ customers on the dark web. Upon launching a formal investigation, Europcar found that the data being sold was fake, likely generated using advanced tools like generative AI.
How Are They Doing It?
Cybercriminals are leveraging AI-powered tools such as ChatGPT to quickly generate realistic-looking data sets. By conducting thorough research, they design data sets that appear complete with correctly formatted names, addresses, emails, and even local phone numbers. They also use online data generators designed for software testing to create large, authentic-looking data sets. Once they have these fabricated data sets, they choose a target company and post the information on the dark web, claiming it was stolen.
Why Are They Doing It?
Why would a hacker fake a data breach? There are several reasons:
- Creating Distractions: By faking a data breach, they can divert a company's attention to finding a non-existent breach, making it easier to launch a real attack from a different angle.
- Bolstering Their Reputation: In the hacker community, reputation is highly valued. Targeting a well-known brand can earn them notoriety and recognition 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. This creates an opportunity for cybercriminals to manipulate the market for financial gain.
- Learning Security Systems: Faking a data breach allows cybercriminals to gain insights into a company's security processes, such as threat response times and security capabilities, helping them fine-tune their future attack strategies.
Why Is This Bad For Businesses, Even If The Data Is Fake?
By the time the public learns that the data is fake, significant damage has already been done. For instance, in September 2023, Sony was targeted by a ransomware group that claimed to have breached its network and acquired its data. The breach made headlines, tarnishing Sony's brand. By the time the investigation revealed the hacker's claim was false, the damage to Sony's reputation was already irreparable.
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: Routinely monitor the dark web to identify any instances of your data being sold. Investigate such claims immediately to mitigate potential damage.
- Have A Disaster Recovery Plan In Place: Develop a communication plan in advance to guide your team on how to respond in the event of a data breach. This plan should be fine-tuned as necessary.
- Work With A Qualified Professional: Partner with a cybersecurity expert who can handle IT-related issues, resolve problems, and prevent breaches. This will ensure that you can focus on your core business activities while having peace of mind that your cybersecurity needs are being managed effectively.
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. To book a FREE consultation to discuss your security needs, call us at 800-626-3223 or click here to schedule now.
