When cybercriminals seem to have exhausted their bag of tricks, they come up with new scams to deceive people. The latest? Faking data breaches to swindle unsuspecting business owners and dark web data buyers.
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 launched a formal investigation, only to find that the data being sold was fake—most likely created using generative AI.
How Are They Doing It?
With AI-powered tools like ChatGPT, cybercriminals can quickly generate realistic-looking data sets.
These criminals do their research, designing complete data sets with correctly formatted names, addresses, emails, and local phone numbers.
They also use online data generators that create large, fake data sets to develop authentic-looking information for software-testing purposes.
Once they have these, hackers choose their target, claim to have stolen the data, and post it on the dark web.
Why Are They Doing It?
Why would a hacker fake a data breach? Besides gaining the benefits without the work of hacking a network’s security system, there are a few reasons:
- Creating Distractions: One of the best ways to get a company to let down its defenses is to focus on something else, like finding a breach in its system. The company will be so intent on finding where a hacker supposedly got in that it will likely miss an attack from a different angle.
- Bolstering Their Reputation: Reputation is highly valued within the hacker community. Publicly targeting a well-known brand is a way for them to earn notoriety and get noticed by other hacker groups.
- Manipulating Stock Prices: A data breach can cause a rapid 3% to 5% (or more) drop in stock prices for publicly traded companies. This can cause widespread panic, allowing cybercriminals to manipulate stocks for financial gain.
- Learning Security Systems: Faking a data breach can allow cybercriminals to gain insight into a 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?
When 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 its network and acquired its data. The breach was all over the news, and by the time the investigation concluded that the hacker’s claim was false, irreparable damage had been done to Sony’s name.
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: Don’t let your team wonder what to say if a data breach occurs. This communication plan must be developed 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 and gives you peace of mind. They will ensure #1 and #2 are taken care of.
Data breaches can create enormous problems for your organization. Get ahead of the issue by having someone proactively monitor your network and the dark web to keep you secure.
We’re happy to provide one for FREE if you want a no-obligation, third-party opinion on whether your network is vulnerable to an attack or properly secured.
Call us at 973-828-0488 or click www.ibsre.com to book your FREE Security Risk Assessment with one of our cybersecurity experts.