Just when you think cybercriminals have exhausted their bag of tricks, they find new and creative ways to scam people. Now, they’re faking data breaches to steal money from unsuspecting business owners and dark web data buyers alike.
A Case Study: Europcar
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 car rental company immediately launched a formal investigation, only to find that the data being sold was fake. The information was falsified, most likely with the help of generative AI.
How Are They Doing It?
With AI-powered tools like ChatGPT, cybercriminals can generate realistic-looking data sets quickly. These criminals do their research and design data sets that look complete, with correctly formatted names, addresses, and emails, and can even include local phone numbers. They also leverage online data generators to quickly create large, fake data sets designed for software-testing purposes, resulting in authentic-looking data. Once they have these fake data sets, hackers choose a target they claim to have stolen the data from and post the information on the dark web.
Why Are They Doing It?
There are several reasons cybercriminals might fake a data breach:
- Creating Distractions: One effective way to get a company to lower its defenses is by making it focus on finding a breach in its system. The company will be so intent on locating the hacker’s entry point that it may miss an attack from a different angle.
- Bolstering Their Reputation: Reputation is highly valued within the hacker community. Targeting a well-known brand publicly earns 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 lead to widespread panic, allowing cybercriminals to manipulate stocks for financial gain.
- Learning Security Systems: Faking a data breach can provide cybercriminals with insights into the company’s security processes. Knowing threat response times and security capabilities helps them fine-tune their attack strategies.
Why Is This Bad for Businesses if the Data Is Fake?
By the time the public is made aware that the information is fake, the damage is already done. For example, in September 2023, Sony was targeted by a ransomware group that announced it had breached the company’s network and acquired its data. The breach was widely reported, damaging Sony’s reputation. By the time the investigation concluded that the hacker’s claim was false, the damage was irreparable.
How to Prevent Fake Data Breaches
To avoid becoming the victim of a fake data breach, follow these steps:
- Actively Monitor the Dark Web: Routinely monitor the dark web for attackers selling your data. Investigate any claims immediately to prevent extensive damage.
- Have a Disaster Recovery Plan in Place: Develop a communication plan in advance, so your team knows what to say if a data breach occurs. Fine-tune this plan if and when a breach occurs.
- Work with a Qualified Professional: Collaborate with a cybersecurity expert who knows what to look for, how to resolve issues, and how to prevent breaches. This takes tasks off your plate, provides peace of mind, and ensures steps 1 and 2 are covered.
Conclusion
Data breaches can create enormous problems for your organization. Proactively monitor your network and the dark web to stay secure. If you want a no-obligation, third-party opinion on your network’s vulnerability to an attack or to ensure it is properly secured, we’re happy to provide a FREE Security Risk Assessment. Call us at (312) 767-1250 or fill-in the form below to book your FREE Security Risk Assessment with one of our cybersecurity experts.