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We often hear about data breaches, but rarely about what happens to the stolen personal information afterward. Each year, billions of personal records are compromised in data breaches, but what do hackers do with that data?
5 reasons why hackers steal your personal data
Computer hacking and data breaches are a lucrative business for cyber criminals. Here are five reasons why.
1. Hackers sell your data to other criminals for financial gain
One common way that malicious hackers, also known as black hat hackers, use stolen data for financial gain is by selling it in bulk on the dark web. These data sets can contain millions of personal records which buyers use for various criminal activities including fraud, account takeover, and extortion.
2. Stolen personal information fuels identity theft
Identity theft occurs when criminals use someone’s personal details, like their name, address, Social Security number or credit card number, to commit fraud. Hackers steal this information from online accounts and use it for activities like unauthorized credit card purchases, taking out loans, or even committing tax fraud in the victim’s name.
3. Login credentials enable account takeovers
Hackers use stolen login details to gain access to accounts with payment information, such as online shopping platforms. This is known as account takeover, and it can result in identity theft. If hackers change the account password, victims then lose access to the account and any stored payment details could lead to financial losses.
4. Stolen data is used for phishing attacks and extortion
With stolen personal information, hackers can launch phishing attacks that trick victims into willingly sharing sensitive information like credit card numbers. They can also use highly sensitive data to blackmail victims through extortion.
5. Stolen data can harm businesses
Stolen personal information doesn’t just affect individuals — it can also damage companies. Criminals can use this data to trick employees into divulging sensitive company information or making fraudulent payments. Such targeted attacks are known as spear phishing. Hackers can also infiltrate company networks to steal sensitive data or install malware. Additionally, they may engage in corporate espionage — stealing proprietary information to gain a competitive edge or sell it to the highest bidder. Occasionally, gray hat hackers exploit system vulnerabilities without authorization, aiming to expose security flaws for recognition or the possibility of a reward.
How do hackers steal personal information?
Hackers use a variety of methods to steal personal data from individuals, businesses, and computer systems with security flaws. Common hacking techniques, scamming tactics, and hacking tools include:
Phishing: sending fraudulent emails or messages that trick victims into providing sensitive information
Malware: installing malicious software, such as keyloggers or spyware, onto victims’ devices to capture data
Weak passwords: using tools like brute-force attacks to guess weak or reused passwords
Data breaches: infiltrating company databases to steal large volumes of personal information
Social engineering: manipulating victims into revealing personal information by posing as trustworthy entities
Unsecured public Wi-Fi: intercepting data transmitted over public Wi-Fi networks between the user and the server
Fake apps: creating malicious apps that mimic legitimate programs, but instead access and steal data from users’ devices
Unsecured websites: intercepting data exchanged on websites without HTTPS encryption, making personal information vulnerable
Malicious hacking vs ethical hacking
While malicious hackers exploit these techniques for illegal activities, ethical hackers use them to identify security vulnerabilities and strengthen protection. Ethical hacking, a legitimate and constructive application of hacking skills, is vital in defending organizations from potential threats. Known as white hat hackers, ethical hackers conduct penetration tests and participate in bug bounty programs to detect and resolve software vulnerabilities, ultimately bolstering cyber security.
What types of personal data are most valuable to hackers?
Hackers seek out personal data that can be used for financial fraud, identity theft, or resold for profit. The most valuable types of data include:
Social Security numbers — used to open credit accounts or file fraudulent tax returns
Credit card details — used to make unauthorized purchases or sold on the dark web
Bank account information — enables hackers to make fraudulent transfers or withdrawals
Login credentials — used for account takeovers or credential stuffing attacks
Personally identifiable information (PII) — names, addresses, birthdates, and phone numbers, often used for identity theft or social engineering
Medical data — insurance information or health records, used for healthcare fraud
Email addresses — used for phishing scams or sold to other criminals for future attacks
Driver’s license or passport information — used to create fake IDs or commit fraud
How can you tell if your personal information has been stolen?
There are several key warning signs that can indicate your personal information has been stolen:
Unfamiliar charges on your credit card or bank statement — malicious hackers may gain unauthorized access to personal information to make such charges
Notifications of logins from unknown devices or locations, indicating that someone may have gained unauthorized access to your accounts
Receiving bills for services you didn’t sign up for, or statements for credit cards you didn’t open
A denied credit application or a sudden drop in your credit score without explanation
Emails or notifications about password resets that you didn’t initiate
Strange messages, phone calls, or emails from companies you don’t recognize
Additionally, identity theft protection services, credit monitoring agencies, or law enforcement may contact you about suspicious activity. Companies may also notify customers directly when a data breach has occurred.
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