The Latest Cybercriminal Scheme: Faking Data Breaches to Scam Businesses and Buyers

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Just when you think cybercriminals have exhausted their bag of tricks, they find a new way to surprise you. The latest scam? Faking data breaches to steal money from unsuspecting business owners and dark web data buyers alike.

Earlier this year, Europcar, an international car rental company based in France, discovered that a cybercriminal was selling what appeared to be private information on over 50 million of its customers on the dark web. Naturally, the company launched an immediate investigation, only to find that the data being sold was fake – likely fabricated using generative AI.

How Are Cybercriminals Pulling This Off?

With the help of AI-powered tools like ChatGPT, cybercriminals can now generate realistic-looking data sets quickly and easily. These criminals do their research, designing data sets that seem complete, with correctly formatted names, addresses, and emails, even including local phone numbers that match. They also leverage online data generators intended for software testing to create large, authentic-looking fake data sets. Once they’ve crafted these convincing data sets, the hackers select a target, claim to have stolen the data, and post it on the dark web.

Why Are Hackers Faking Data Breaches?

Faking a data breach might seem like a lot of effort for no real gain, but there are several reasons why cybercriminals resort to this tactic:

  1. Creating Distractions: One of the most effective ways to get a company to drop its defenses is by distracting it with a fake breach. While the company is focused on finding the supposed breach, it might miss a real attack happening from another angle.
  2. Bolstering Their Reputation: Within the hacker community, reputation is everything. By publicly targeting a well-known brand, cybercriminals can gain notoriety and recognition from other hacker groups.
  3. Manipulating Stock Prices: For publicly traded companies, the news of a data breach can cause stock prices to drop by 3% to 5% or more. Cybercriminals can exploit this panic to manipulate stock prices for financial gain.
  4. Learning Security Systems: Faking a data breach can give cybercriminals valuable insights into a company’s security processes, including how it prevents, detects, and resolves attacks. This information can help them fine-tune their strategies for future, more effective attacks.

Why Is This Dangerous for Businesses, Even If the Data Is Fake?

The damage caused by a fake data breach doesn’t end once the truth is revealed. For instance, in September 2023, Sony was targeted by a ransomware group claiming to have breached its network. The news spread like wildfire, with Sony’s reputation taking a significant hit. By the time the investigation concluded that the hacker’s claims were false, the damage to Sony’s brand was already done, and the impact was irreparable.

What Can You Do to Protect Your Business from Fake Data Breaches?

To avoid falling victim to a fake data breach, consider implementing the following steps:

  1. Actively Monitor the Dark Web: Your cybersecurity team should regularly monitor the dark web. If you discover an attacker selling your data, investigate the claim immediately to mitigate potential damage.
  2. Have a Disaster Recovery Plan in Place: Your team shouldn’t be left wondering what to say or do if a data breach occurs. Develop and fine-tune a communication plan in advance so you’re prepared to respond effectively if a breach, real or fake, happens.
  3. Work with a Qualified Professional: Focus on what you do best – running your business. Partnering with a cybersecurity expert ensures that you have someone who knows what to look for, how to resolve issues, and how to prevent breaches from happening in the first place. This gives you peace of mind, knowing that your business is secure.

Get Ahead of the Threats

Data breaches, whether real or fake, can create enormous problems for your organization. Stay ahead of the issue by having someone proactively monitor your network and the dark web to keep your business secure. If you’d like a no-obligation, third-party assessment of your network’s security, we’re here to help. Call us at 877-807-1332 or click here to book your FREE Security Risk Assessment with one of our cybersecurity experts.