Tag Archives: Social Engineering

Real-Life Examples of How AI Was Used to Breach Businesses

AI to Breach Businesses

There has been a lot of talk recently, about how hackers are leveraging AI to breach businesses. Hackers can sneak their way in more easily with these new algorithms used in social engineering.

Unfortunately, these are no longer just theoretical discussions. We have reached a point where AI-powered data breaches are actually a reality. In fact, they are among the most rapidly growing threats to businesses everywhere. Today, we will talk about some real-life examples of recent data breaches made possible through AI.

TaskRabbit Data Breach

IKEA’s well-known online marketplace TaskRabbit was one of the targets of hackers using AI to breach businesses in April 2018. TaskRabbit’s primary goal is to match freelancers (Taskers) in housekeeping, moving, delivery, and similar industries with local demand (Clients). It operates on a large scale, and when the breach happened, the site had millions of registered users.

The company has found out that over 3.75 million records of Taskers and Clients were affected in the breach. Personal information and financial details were stolen. The website and the mobile app had to be shut down and taken offline for a while as the company dealt with the damage. According to investigations, the distributed denial-of-service, or DDoS, attack used an AI-enabled botnet.

Yum! Brands Data Breach

Yum! Brands, was the victim of hackers using AI to breach businesses in January 2023. Initially, management thought that corporate data was the sole target of the attack, but it turned out that employee information was also compromised. An unidentified malicious actor launched a ransomware attack that led to the breach.

Many ransomware attacks that took place after the creation of AI tools leveraged AI technology to automate decisions on which data to take, as some brought more damage potential to the target business. It proved to be a good tactic, as Yum! was forced to close nearly 300 of their UK branches for several weeks.

AI used to Breach Businesses like T-Mobile

This wireless network operator is no stranger to data breaches, having survived nine separate attacks in the last five years. Early this year, T-Mobile revealed that 37 million of its customer’s records were stolen in a breach that began in November 2022.

According to the company’s AI analysts, the threat actor used an application programming interface or API equipped with AI capabilities and could secure unauthorized access. This ultimately led to the theft and exposure of sensitive client information, including full names, contact numbers, and PINs.

AI used to Breach Businesses like Activision

In December 2023, hackers launched a targeted phishing campaign against Activision, the company that created the Call of Duty games. Hackers used AI to breach businesses like Activision and created the SMS messages used for the phishing attacks, which ultimately proved successful as one HR staff member succumbed to the bait.

But we all know that one click is all it takes because, immediately, the hacker gains access to the complete employee database. This included email addresses, phone numbers, work locations, salaries, and more. However, they were able to find a solution since Activision could find the breach early.

Don’t Be the Next Victim of Hackers using AI to Breach Businesses!

Because of AI tools, data breaches have become much more far-reaching today in terms of business damage as compared to years past. The total cost is also much higher, with an average expense of $4.45 million for each breach. Although hiring an AI cybersecurity expert and upgrading your system would cost money, it wouldn’t come close to the expense of the harm a cyberattack would cause.

The examples above are all real, and as you can see, they have happened to large companies. All these companies thought they had reliable security systems, or so they thought. The point is that any of us, including you, could experience a data breach, especially one that uses AI. To learn more about how hackers use AI technology, download our FREE eBook, “The Growing Role of AI in Security – The Good, the Bad and the Ugly.”

Would you take the risk and just cross your fingers that you don’t become the next victim, or would you take proactive measures right now to boost your defenses and maximize your company’s protection? If you choose the latter, we are here to provide all the services you need. Just contact us so we can make sure your system is safe from AI attacks.

Emerging Threat: AI-Powered Social Engineering

AI Social Engineering

Artificial intelligence has brought many advantages to different aspects of modern life. This new technology allows for the fast and accurate analysis of massive amounts of data. It can eliminate task redundancy and minimize human error. Businesses have benefited from this powerful tool, as it enables them to accomplish more while using fewer resources. However, AI-powered social engineering also brings with it a plethora of new security risks.

It is an impressive bit of technology, but it is not perfect, and hackers take advantage of its vulnerabilities for their malicious purposes. Also, it didn’t take long for cybercriminals to figure out how to leverage AI tools, especially with social engineering.

What Is Social Engineering?

Before we bring AI into the picture, let us first talk about what social engineering is and why it is considered by many to be one of the most dangerous security threats.

It is the use of manipulative or deceptive tactics to entice unwitting victims to do something they won’t normally do, like divulging sensitive information or confidential data, granting access to unauthorized entities, or performing other actions that compromise the company’s security.

Social engineering comes in many forms, the most prevalent of which is phishing. Other methods are pretexting, baiting, and CEO fraud. When using these strategies, hackers bank on human error or weaknesses in human nature. It has always been a very effective method of hacking, but now, with powerful AI tools, social engineering has climbed to an entirely new level.

AI-Powered Social Engineering Techniques

Generative AI tools have taken on much of the challenge that hackers used to face with social engineering. Through a range of AI algorithms, the techniques can now be implemented faster, more efficiently, and on a much wider scale than ever before.

Personalized Phishing Campaigns

Before AI, phishing emails had a generic look. They would not immediately draw your attention because it looks like something standard or random. But with AI, hackers can now create highly personalized and more convincing phishing messages that are more likely to get a response from the recipients. They can gather and analyze huge amounts of data from all over the internet, which helps make the emails seem credible.

Voice and Facial Recognition

It’s certainly fun to play with apps that give you AI-generated likenesses of your photos. However, hackers will use the voice and facial recognition technology in these AI apps for their social engineering schemes. You might have a video call from someone you know, not realizing that you are talking to an AI-generated video of them. Hackers can easily do this using Deepfake technology, which not only manipulates images but audio as well.

Automated Social Media Manipulation

Another capability of AI that hackers find extremely useful is to emulate human behavior. Through data analysis and machine learning, AI can create fake social media profiles, which can then spread fake news or sway public opinion. Even worse, hackers can automate all of this so it can happen quickly and result in far-reaching disastrous consequences.

Social Engineering Chatbots

When live chat features came into use, customers would chat with a live person in real time. An actual customer service representative answered your questions or would assist you with whatever concern you had. But these days, it’s likely that you are only talking to a chatbot, which can give very human-like responses. Hackers use similar chatbots, except, instead of providing information, their main goal is to gather data or deceive unsuspecting individuals.

How to Keep Threats at Bay

There is no way to stop cybercriminals from using AI tools for their malicious gain, especially since these tools have proven to be very effective. Despite the rising instances of AI-powered social engineering, you can take proactive measures to keep your business secure.

Education and Awareness

Ai-powered or not, social engineering tactics are highly reliant on human negligence. So it makes sense to keep these threats under control through constant education and awareness. Businesses must conduct regular training to keep employees updated on the latest cybersecurity threats and to remind them to stay vigilant and never let their guard down.

Multi-Factor Authentication (MFA)

The more layers of security you have, the harder it will be for hackers to get into your system, even if they use the most advanced AI algorithms. Multi-factor authentication gives hackers an extra hurdle to overcome when they try to get into your system.

AI-Powered Security Solutions 

If hackers are using AI to boost their social engineering game, there is no reason you shouldn’t use AI to enhance your company’s security solutions. With artificial intelligence, it is a two-way street. You can either fear it or use it to your advantage. If implemented properly, an AI-powered cybersecurity system can give you an impeccable defense against any attack that online criminals might throw your way.

Final Thoughts on AI-Powered Social Engineering

There are multiple ways that cybercriminals can leverage AI tools for their social engineering strategies. But there are just as many ways by which you can build a formidable defense against these attacks. To learn more about what you can do, download our Cybersecurity E-bookCall us anytime so we can send you more information or schedule a free consultation!

Phishing and Social Engineering Training

Phishing and Social Engineering

Companies have tried many methods to train employees about phishing and social engineering. But after all this time, over 90% of all data breaches are traced back to human error. It seems we haven’t progressed from where we were five years ago! Is it that hard to learn? Perhaps there is a better training method that we can use.

Traditional classroom instruction works for introducing concepts, but it’s not the best strategy for optimal retention and practical application of these concepts in the real world. There must be a better way, such as simulation exercises that will encourage critical thinking in the face of an actual phishing or social engineering threat.

10 Skills to Gain from Simulation Exercises

Realistic simulations can help employees develop skills to elevate your organization’s overall security. Here are ten benefits that your staff can gain from simulation exercises.

Ability to Spot Phishing and Social Engineering Attempts

The first line of defense against phishing is to know what it looks like. Most are cleverly cloaked to look like the real thing. There will always be telltale signs that will let you know these links, download requests, or simple email messages are not to be trusted.

Awareness of Safe Browsing Practices

Just because your computer has built-in anti-malware tools doesn’t mean you can be lax in browsing the web. There are things you must do to maintain security each time you are online, like disabling the auto-fill feature in forms, avoiding public Wi-Fi, and using only https websites.

Creation of Strong Passwords to Prevent Phishing and Social Engineering Attacks

We all know how important it is to have strong passwords for all our accounts. Still, many employees forget, perhaps because of the volume of passwords they need to remember. Simulation exercises can show how easy it can be to crack a simple password. Seeing this would effectively drive the lesson and teach people to create long and complex passwords. These exercises can also address multi-factor authentication and an efficient password manager.

Taking Precautions in Social Media

The average person spends 2.5 hours a day on social media. This is a lot of time with exposure to online predators. You can minimize the risk by taking adequate precautions, such as limiting the posting of personal information, staying away from suspicious apps, and being aware.

Prudence in Downloading Files

Even files from trusted sources can be infected with malware, so there is zero room for laxity. Make it a habit to scan all files before downloading and not open files from senders you don’t know.

Using Data Encryption on Phishing and Social Engineering

Data transfer is such an ordinary thing these days that some people forget to take precautions. Now more than ever, it is vital to keep all data transfers as secure as possible by using the most advanced tools and by protecting all devices used for these transfers.

Practicing Physical Security on Phishing and Social Engineering

Just because cybersecurity is in place doesn’t mean physical security protocols can be forgotten. Through simulation, you can see how incredibly easy it is to get through an unmonitored entry point in a building, or how quickly a hacker can enter a system through an unattended device.

Maintaining Remote Security

Using public Wi-Fi for work can open the organization’s network to the prying eyes of cybercriminals. Simulation exercises must cover home network protection, proper use of VPNs, and safety protocols for public hotspots.

Avoiding Malware Risks

Phishing simulation is a great way to teach employees to avoid malware risks. These exercises will teach them what to avoid, increasing their chances of safety for the real thing.

Taking Action on Suspicious Activities

Finally, phishing and social engineering simulation exercises will teach employees what to do if they become a cyberattack victim. Specifically, there will be instructions on incident reporting, whether the breach has been confirmed or suspected.

Is someone hacking your data? Download our Infographic, “The Top 10 steps to take if you think you have been hacked.” If you’d like, call us and we can talk about how we can customize data security for your unique needs!

Training Employees to Spot Social Engineering

spot social engineering

Social engineering is one of the newest methods hackers use to access sensitive information. Rather than attacking a system directly, this technique relies on human psychology to gain information. This method is brilliant when you think about it because it does not have to deal with going past ironclad network security. If hackers can manipulate even a single employee, they might hand over sensitive information on a silver platter, and the hackers can take control of the organization’s entire system. This is why its important for your employees to learn how to spot social engineering.

Companies must understand that if you can’t spot social engineering it can compromise business security. Reports show that over 90% of data breaches happen because of social engineering. Phishing scams account for 54% of these cases. The good news is that there is a way to prevent social engineering threats, and that is by training employees.

Popular Social Engineering Techniques

There is a lot to cover in training employees to spot social engineering. A logical start would be to discuss the most popular techniques so employees can recognize and avoid them.

Phishing is the most common method because it is easy to execute. It also yields positive results, at least for the hackers. This method entails sending emails that deceive victims into clicking a malicious link or divulging sensitive information without realizing it.

Pretexting is when a hacker gains the victim’s trust through a pretext or a created scenario, which is part of a larger, more convoluted social engineering attack plan. There is also the quid pro quo attack, where the hacker lures the victim into divulging information in exchange for something in return. Tailgating, or piggybacking, is a popular social engineering technique where the victim unknowingly gives the hacker access to a secure location.

Importance of Employee Training To Spot Social Engineering

These social engineering strategies would be much easier to execute if employees were untrained and unaware of the risks involved. The damage could be monumental, as the $100 million phishing scam on Google and Facebook illustrates. From 2013 to 2015, a team of hackers sent numerous phishing emails to specific employees of Google and Facebook, telling them to deposit money into fraudulent accounts. They could collect more than $100 million from this scheme.

Now, even if your business does not have that kind of revenue, you can still be a victim. These days, hackers are targeting small businesses on a massive scale. Every employee can also be a target, from customer service personnel to top executives, so you must conduct training across the board.

Best Ways to Train Employees to Spot Social Engineering

There are several methods of training your employees to spot social engineering. Traditional classroom workshops, either personal or online, are excellent for an in-depth training session. A one-time seminar is hardly enough, though, and that is why we also recommend regular refreshers.

Unannounced phishing simulations are effective in evaluating employees based on how much they have learned. It would surprise you how so many people do well in theory but still won’t be able to tell the real deal when it is staring at them from the inbox. Being bitten once in a simulated attack will teach your employees to be more vigilant.

Final Thoughts

Organizations can achieve a high level of protection against social engineering if everyone is sufficiently aware of the risks and knows what to do in case an attack goes through. Besides the various training methods, you will implement, we strongly advise you to download our infographic, “The Top 10 Steps to Take If You Think You Have Been Hacked.” Print it out and post it on every department’s bulletin board. Be sure all your employees also get their own copy.

For more information about social engineering and how to avoid becoming a victim, call us. We can get you up to speed on the latest preventive measures and keep your company safe from the prying eyes of cybercriminals.