Fake Data Breach | How Is This Possible?

Cybercriminals are trying a new approach to hacking to cash in handsomely, and that is to fake data breaches. How is this possible you might ask? Well, the short answer is with the help of AI. Yes, AI can and does create opportunities for all types of people, even online criminals.

This new type of cybercrime allows them to “fake” stealing data from unsuspecting businesses and then try to sell that information onto the dark web. 

How Was it Discovered?

At the beginning of this year (2024), an international car rental company Europcar was informed by a hacking forum that a hacker claimed to have stolen data from the rental car giant. They claimed to have stolen the personal information of over 48 million Europcar customers.

The hacker then went on to advertise selling that information to any interested party and was listening for any offers that would come in. 

Upon further investigation, it was later discovered that the data was incorrect and made up. Essentially, the hacker was trying to cash in on completely false information. A spokesperson from Europcar stated that they probably were able to put that information together using ChatGPT or something similar.

Yes, ChatGPT.

How Was It Done?

It’s pretty easy for cybercriminals to generate this kind of data with AI-powered tools like ChatGPT. The ones who are willing to study their targets and do a little homework will be able to produce a very convincing set of data to replicate the original data they’ve been privy to.

There are many other tools online in addition to AI tools that can help them format a list of customers to look exactly like that of a real customer list. In this case, the customer list of Europcar, which to the naked eye looks exactly like what they have in their internal database.

Once they’ve successfully pulled this off, the cybercriminals can go to the dark web and sell that information masquerading as authentic data, when it’s fake. Successfully pull off a “fake data breach”.

Their Motivation

There are many reasons why hackers and cybercriminals will attempt this deception, other than the fact that they can potentially get the same monetary rewards without actually hacking into a company’s network. But here are a few reasons why it’s believed they’re doing it

1. Distraction from Real Security Vulnerabilities: This could be a roundabout way to execute a real attack. Distracting a company to focus on one thing, could cause them to completely overlook another area of vulnerability that cybercriminals could take advantage of.
2. Creating Opportunities for Future Attacks: There could be more than one opportunity to go after the same target, and cybercriminals may recognize this fact. An initial “fake” attack could expose a weakness in that target’s line of defense that can be exploited for future attacks.
3. Boost Their Reputation: Having a reputation of any kind is of high value among the hacking community. So to be able to brag and tell their other hacker friends they were able to hack into a reputable company’s network and get their data goes a long way.
4. Impact on Reputation and Trustworthiness: This could initially affect the confidence customers will have in a particular company that was a victim of a data breach, even if it was later discovered that it was fake. 

How This Negatively Impacts Business?

Once this information is made public, it hurts the brand of that particular business. Even if the claims were false, businesses will take a hit negatively both for their brand and revenue.

The media will create a lot of press about the situation, which will not sit well with customers and investors alike. As a result, the company is left with a damaged reputation, a drop in stock prices if they’re a publicly traded company, and a loss in revenue.

So even though that company may not have been a victim of a real cybercrime, it still lost in the long run because it created fear among customers and investors.

What Can Be Done to Prevent (Fake) Data Breach?

It’s always a good idea to have in place of proactive measures that’ll prevent your business from becoming a victim of a cyber attack of any kind, whether it’s fake or real. However, here are some tips that you can adopt in your business if you’re not already doing them.

The first thing I’d recommend is having an active monitoring system in place that scans for any suspicious activity taking place on your network. This could be a third-party cyber security partner that provides this service for you. Something a little more involved than a basic anti-virus software.

Another important practice is having a disaster recovery plan in place. What this means is in the event your business does fall victim to a data breach or any other cyber crime, there’s a plan in place to help your business get back up and running again in a short period. This usually involves having a robust data backup plan in place, among other things.

Finally, ensure that you are working with a tech or IT professional to help your company tackle your IT-related issues. This will give you the peace of mind you need to work on the things that matter most to you, your business.

Data breaches are a real concern for many businesses today. Cybercriminals are constantly coming up with new ways (even fake ones) to target unsuspecting victims daily. Ensure that you stay ahead of this issue by getting services that’ll actively monitor your network on a 24-hour basis. If you would like to discover if your network is vulnerable to any potential attack, we’d be happy to help with that!

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