Cybercriminals will never run out of ideas on how to scam people, unfortunately. They are getting more and more creative. The new fad is faking data breaches in hopes of stealing money from unsuspecting business owners and dark web data buyers.
Earlier this year, an international car rental company from France found that a cybercriminal was selling private information of its 50 million+ customers on the dark web. The company immediately launched a formal investigation to track down the perpetrator. Spoiler alert: the data being sold was fake. The information was falsified, most likely done with the help of generative AI.
How Did They Do It?
With AI-powered tools, it’s easy for cybercriminals to generate realistic-looking data sets quickly. Smart cybercriminals do their research and design data sets that look complete, with correctly formatted names, addresses and emails. Some can even include local phone numbers to match. They will also leverage online data generators that can quickly create large, fake data sets designed for software-testing purposes to develop authentic-looking data sets. Once they have these, hackers choose the target they claim to have stolen the data from and post the information on the dark web.
Why Do It Though?
There are a couple of reasons, other than stealing data, that a hacker would fake a data breach:
- Creating Distractions. Company’s let down its defenses to focus on the “issue” of a potential breach in their system. It’s the age-old “distract them with this hand, while I attack with the other” trick.
- Bolstering Their Reputation. In the hacker community, reputation is highly valued. They want to tout they are top of the food chain; they want to make a name for themselves. Targeting a well-known brand publicly is a way to earn notoriety and get noticed by other hacker groups.
- Manipulating Stock Prices. For publicly traded companies, a data breach can cause a rapid 3% to 5% (or more) drop in the stock. 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 the company’s security processes to prevent, detect and resolve attacks. Knowing threat response time and security capabilities can help them fine-tune their attack strategy.
Why Is A Fake Data Breach Bad For Businesses?
By the time the public is made aware that the information is fake, the damage is already done. A cybersecurity breach of a publicly-traded company can be all over the news, and the reputable name drug through the mud. By the time the investigation concludes, irreparable damage is done.
What Can You Do To Prevent Fake Data Breaches?
If you want to avoid being the victim of a fake data breach, these are good steps to follow:
- Monitor The Dark Web. Your cybersecurity team should routinely monitor the dark web – and you should too. If you encounter an attacker selling your data, investigate the claim immediately to prevent extensive damage.
- Have A Disaster Recovery Plan. Don’t “fly by the seat of your pants” when a data breach occurs. This communication plan needs to be developed in advance and fine-tuned if or when a breach occurs.
- Work With A Qualified Professional. You are in business to do what you love to do – and I’m sure dealing with IT-related issues is NOT one of those things. That’s where an IT provider comes in – that’s what they LOVE to do. 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, and make sure that #1 and #2 are taken care of.
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. A Managed Services Provider (MSP) such as Atlantic Technology Services can take the worry out of IT management for your company. Schedule a consultation by calling 410-860-9899. Our sibling company, Fortifi Cyber Security, can help your organization protect itself against cyber threats with world-class, highly-affordable security services. Call Fortifi today at 888-500-9111 or sign up for a free vulnerability test.