Fake news of several KYC firms’ data leaks has moved to the forefront in the last few months. While it startled industry professionals, more logical speculations soon took over. Experts are now saying there isn’t enough proof to say a breach occurred, and it was nothing but a failed extortion attempt.

All the claims pointed out one thing: a huge database containing private information of common people has leaked, and it is all on the internet for anyone to access. Experts, analysts, and professionals bifurcated the narrative to understand what actually happened and found out that all these speculations lack any solidified proof about the KYC data breach.

KYC Data Breaches Expose Extortion Attempts

Cyber security News is filled with headlines of “KYC data breach,” “KYC data leak,” and “KYC data expose.” It runs on the alleged news of data thefts, but there is no credibility to their claims. Cyber security News has several data breach stories, all just conveying the claims of cyberbullying groups. There is no fact check, no conversation with concerned companies, just a one line which says “Cyber crime groups have claimed to steal 1 billion data records.”

KYC data breach

It seems like their only source of information is cyber criminals and hackers. They have more trust in illegal groups than a rule and regulations-compliant organization handling sensitive information for decades.

Fake News is Fueling a New Wave of Money Extortion

A deeper dig into this case and have brought out some more information regarding the fake KYC data exposé. There has been intel about hackers finding an innovative way to extort a KYC company. But the onslaught of unverified news copied by several media houses and websites from a single outlet proves how cyber-attacks are on the rise in this current age of digitalization. Hackers do not just pressurize for money; they spread rumors by teaming with fake news outlets to create psychological pressure on companies.

Traditionally, ransomware attacks used to be different. Nefarious actors used to hack the system, enter sensitive databases, and block the system from working. After the technical compromise, they used to ask for money directly. Today, attackers seek a more innovative technique that would cause psychological pressure on the KYC companies. Once the fake news of a data breach spreads, they can create media pressure on the company.

The takeaway is very strategic. The aim of the attackers is to drain trust in the organization from the industry so that they can ask for a bigger ransom. Although these extortion attempts often fail, a few companies still fall prey to the tactic and end up giving a large amount of money.

How KYC Companies Are Trapped In this Frenzy?

The end goal of the new extortion tactic is to damage the company’s reputation with fake and exaggerated claims. However, they still differ, and companies may get distracted because of unlikeness. The first method includes spam emails that inform the targeted company of an unsecured database in their system. By the time the company looks into the matter and system passes forensic tests without any default. Hackers already spread rumors of a data breach, creating panic and pressure on the company.

The second way includes exaggerated claims and half-truths. Cybercrime groups post on social platforms that they have entered an unprotected system of a particular company. They claim big numbers and give manipulated data to create credibility among the users. However, in multiple cases, experts have noted that the databases accessed by these groups are generally databases with deprecated information that are basically a cache for any website.

Once there is a claim that mentions a violation of the common public, the news becomes an issue of personal safety, creating fear among users and distrust in stakeholders.

Ways to Safeguard KYC Companies From Extortion

While these things come unexpectedly, especially when you are least concerned about them. But KYC organizations need to be aware of the steps that will help them in avoiding extortions and cyberattacks.

Always make sure to perform a detailed background verification of employees and clients before onboarding.
Make your employees and management aware of the risks and steps to take in intense situations.
Always have your database saved on different servers, make several copies, and share passwords with only trusted employees.
Keep a check of employee handling database and make sure all the changes and features are updated on a regular basis.

The post How KYC companies are facing Fake Cyber security News Data Breach Claims appeared first on Technowize.

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