Just when you think cybercriminals have run out of new ways to scam people, they find a way to surprise you. Now, they’re 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 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 Did They Do It?

With AI-powered tools like ChatGPT, it’s easy for cybercriminals to quickly generate realistic-looking data sets. Smart cybercriminals do their research and design data sets that look complete, with correctly formatted names, addresses, emails, and even local phone numbers. They also leverage online data generators to create large, fake data sets designed for software testing purposes, making the data look authentic. Once they have these, 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?

Why would a hacker fake a data breach? There are several reasons, besides reaping the benefits without the work of hacking a network’s security system:

  1. 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 was already able to get into its network that it will likely miss an attack from a different angle.
  1. Bolstering Their Reputation: Reputation is highly valued within the hacker community. Targeting a well-known brand publicly is a way for them to earn notoriety and get noticed by other hacker groups.
  1. 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.
  2. 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 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 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 reputation.

What Can You Do To Prevent Fake Data Breaches?

If you want to avoid being the victim of a fake data breach, follow these steps:

  1. 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.
  2. Have A Disaster Recovery Plan In Place: Don’t let your team wonder what to say if a data breach occurs. This communication plan needs to be developed in advance and fine-tuned if or when a breach occurs.
  3. 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, gives you peace of mind, and ensures monitoring and planning 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. If you want a no-obligation, third-party opinion on whether your network is vulnerable to an attack or properly secured, we’re happy to provide one for FREE.  Call us at 843-418-4792 or https://www.spartantec.com/discoverycall/ to book your FREE Security Risk Assessment with one of our cybersecurity experts.