August 12, 2024
Just when you think cybercriminals have exhausted their bag of tricks, they come up with innovative scams to surprise you. Their latest tactic involves fabricating data breaches to deceive both unsuspecting business owners and dark web data buyers.
Earlier this year, Europcar, an international car rental company based in France, discovered that a cybercriminal was selling private information about its over 50 million customers on the dark web. Upon launching a formal investigation, Europcar found that the data being sold was fake, likely generated with the help of generative AI.
How Did They Do It?
With AI-powered tools like ChatGPT, cybercriminals can quickly create realistic-looking data sets. Savvy cybercriminals conduct thorough research to design data sets that appear complete, including correctly formatted names, addresses, emails, and even local phone numbers. They also use online data generators designed for software-testing purposes to develop authentic-looking data sets. Once these data sets are ready, hackers choose 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 reaping the benefits without the effort of breaching a network's security.
- Creating Distractions. One effective way to lower a company's defenses is to divert its attention to a supposed breach. The company becomes so focused on finding the breach that it may overlook an attack from a different angle.
- Bolstering Their Reputation. Reputation is highly valued in the hacker community. Publicly targeting a well-known brand helps them earn notoriety and gain attention 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 create panic, allowing cybercriminals to manipulate stocks for financial gain.
- Learning Security Systems. Faking a data breach allows cybercriminals to gain insight into a company's security processes for preventing, detecting, and resolving attacks. Understanding 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 realizes 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 its network and acquired its data. The breach made headlines, tarnishing Sony's reputation. By the time the investigation concluded that the hacker's claim was false, the damage to Sony's name was irreparable.
What Can You Do To Prevent Fake Data Breaches?
To avoid becoming a victim of a fake data breach, consider these steps:
- Actively Monitor The Dark Web. Routinely monitor the dark web for any signs of your data being sold. If you find an attacker selling your data, investigate the claim immediately to prevent extensive damage.
- Have A Disaster Recovery Plan In Place. Prepare a communication plan in advance so your team knows how to respond if a data breach occurs. Fine-tune this plan as needed.
- Work With A Qualified Professional. Focus on your core business activities and leave IT-related issues to cybersecurity experts. A qualified professional can help you monitor the dark web, develop a disaster recovery plan, and prevent breaches, giving you peace of mind.
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