Cybercriminals use stolen data for many malicious purposes, like financial gain, extortion, and more.
How cybercriminals use your data
Financial gain
Cybercriminals often use stolen data to make money directly or indirectly.
- Fraudulent transactions: With access to stolen credit card details or bank account information, cybercriminals can make unauthorized purchases or transfers, leaving victims with financial losses.
- Reselling data on the dark web: Personal information, login credentials, and financial data are frequently sold on underground marketplaces to other criminals who will use or resell the data further. According to the 2018 Trustwave Report, a healthcare data record may be valued at $250 per record on the black market.
- Identity theft: Using personal information, criminals can open credit accounts, apply for loans, or commit other forms of fraud under a victim’s name, causing long-term damage to their creditworthiness.
Phishing and social engineering
Stolen data is a goldmine for creating convincing scams.
- Spear phishing: Cybercriminals use email addresses, personal details, or job information to craft personalized phishing emails, increasing the likelihood of victims falling for the scam.
- Impersonation: By assuming the identity of the victim, criminals can deceive their contacts or colleagues into sharing sensitive information or transferring funds.
Corporate espionage
- Competitor insights: Trade secrets, intellectual property, and business strategies stolen during cyberattacks can be sold to competitors or used to gain a competitive edge.
- Sabotage: Stolen data can be leveraged to disrupt operations or harm the reputation of a business, potentially leading to lost revenue or customers.
Ransomware and extortion
Cybercriminals use stolen data to pressure individuals or organizations into paying.
- Ransom demands: Attackers may encrypt or steal sensitive data, demanding payment to decrypt or return the data. They may also threaten to release the data publicly if the ransom is not paid.
- Blackmail: Personal or sensitive information can be used to coerce individuals or businesses into complying with demands.
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Launching further cyberattacks
Stolen data often serves as a stepping stone for more advanced cyberattacks.
- Credential stuffing: Cybercriminals use stolen usernames and passwords to attempt access to other accounts, exploiting the tendency of people to reuse passwords across platforms.
- Botnet creation: Stolen credentials for servers or IoT devices may allow attackers to add these systems to a botnet, enabling Distributed Denial-of-Service (DDoS) attacks or spamming campaigns.
Reputational harm
For individuals and organizations, stolen data can have lasting personal or professional consequences.
- Doxxing: Cybercriminals may release personal information, such as addresses or phone numbers, to harass or endanger victims.
- Account takeover: By gaining control of social media or email accounts, attackers can post harmful content or defraud the victim’s contacts.
Read also: What is the reputational damage caused by a data breach?
Unauthorized access and system breaches
Stolen data can give cybercriminals a foothold into protected systems.
- Breaking into systems: Credentials or sensitive data can be used to infiltrate networks, potentially causing widespread damage.
- Privilege escalation: Initial access may lead to gaining administrative rights, allowing criminals to extract more valuable information or disrupt operations.
How to protect yourself and your organization
Preventing stolen data from being exploited requires proactive measures such as:
- Using strong, unique passwords: Avoid reusing passwords across multiple sites and use a password manager to generate and store complex passwords.
- Enabling multi-factor authentication (MFA): Adding an extra layer of security makes it harder for cybercriminals to access your accounts.
- Be vigilant: Don’t share sensitive information with unverified sources, and be cautious of unsolicited emails or messages.
- Monitoring financial accounts and credit reports: Regularly review your financial activity to identify suspicious transactions early.
- Ensuring robust cybersecurity practices: Businesses should invest in employee training, data encryption, and regular system updates to mitigate risks.
See also: HIPAA Compliant Email: The Definitive Guide
FAQs
What types of data do cybercriminals typically target?
Cybercriminals often target sensitive personal information such as credit card details, Social Security numbers, login credentials, medical records, and business data like intellectual property or trade secrets.
How can I tell if my data has been stolen?
Some signs that your data may have been compromised include unauthorized charges on your credit card, receiving strange emails or calls asking for personal details, or noticing suspicious activity in your online accounts.
How do cybercriminals access stolen data?
Cybercriminals can steal data through methods like phishing attacks, malware, data breaches, social engineering, or by exploiting vulnerabilities in unsecured systems.