What Happens to Your Data After It’s Stolen? The Dark Web Economy Explained
It starts quietly. An employee fell for a phishing scam and gave a password or granted access to someone they thought they could trust.
A weakness in a security measure wasn’t patched.
A laptop or phone was stolen, with data ready for the taking.
The Journey of Stolen Data
A breach happened, and you did your best to respond quickly, but now your data is out there. The one who stole it takes the information they got from you and begins to work on the best way to monetize it. The first thing a thief may do is classify what they have: personal health information (PHI), login credentials, personal identifiable information (PII), financial and credit card information, or corporate data (intellectual property, financial records, internal communications). The criminal doesn’t want to be caught with this information, but they do want to profit. So the hacker sells what they’ve stolen to another criminal who will do the actual dirty work of stealing money or identities, selling corporate information to a rival company, or holding your company ransom for information your clients don’t want publicized.
They package and market the information they have and head to the dark web where they can find auction sites for illicit goods. They list what they have, and this data is sold to the highest bidder who can then begin to exploit it. The average price for a single credit card on the dark web is about $10-30, but bundled data is worth much more.
What is the Dark Web?
The dark web seems like something that only exists in thriller movies. It’s how you find someone to do your dirty work. Where you launder money. Or even more dramatically, the genius codebreaker types a random string of characters and is somehow inside your machine. It’s so gritty that it hardly seems real, and certainly not anything you’d need to worry about, but in reality, there are plenty of people who look perfectly trustworthy but spend a lot of time on the dark web.
The dark web isn’t as mysterious as many people think. Essentially, it’s the part of the internet that isn’t indexed by traditional search engines, and requires special software to access. An encrypted network then anonymizes identities and activities, allowing illicit and illegal trade to thrive. Drug trafficking and untraceable weapon sales are what most people think of, but trading stolen data is one of the most lucrative activities on the dark web. If a hacker steals your data, this is where they are going to make money off their efforts.
How is My Stolen Data Monetized?
The primary goal of buying and selling data on the dark web is to stay untraceable. Lurk in the shadows and don’t let yourself be recognized. The anonymity is crucial when the trade is illegal, and makes it very difficult to be traced. However, for stolen data to be worth anything, it needs to be monetized. The dark web also helps avoid traditional financial transactions by working only in cryptocurrency. Everything is covered in a layer of protection.
Essentially, once your data is stolen, the cyber criminal brings it to the dark web and begins to “market” it. They take the data they stole and use it for several things, usually identity theft, financial fraud, or corporate espionage. It’s difficult to keep up with the various markets, as they pop back up as quickly as they’re shut down. A hacker will share what they have to offer and then sell the information to the highest bidder.
For example, let’s say your customer recorder was stolen in a data breach. The hacker goes to the dark web and creates a listing with the personal information. An identity thief looking to create false identities for credit fraud purchases that information and begins to create false personas using this information. Maybe your company deals in healthcare, and you have personal health information (PHI) stored on your system. A cyber criminal may not use it to create false identities, but recognizing the value of that information to your company, will use that information to hold the company ransom, demanding large sums to keep that information from going public and destroying their reputation. Once your data is out there, the risks begin to cascade.
Prevention is Critical
The underground market is lucrative, and criminals are ruthless. You have to prevent rather than react. Once your data is stolen, you need to assume it’s on the dark web, and if one criminal has access, it won’t be long before many of them do. That means you have to protect your data. The best way to do this is to make sure you are always using strong passwords, multi-factor authentication, and regularly training your employees on how to avoid being fooled by phishing scams. Invest in cybersecurity tools, but realize they are not infallible, so regularly monitor your accounts and make sure to always keep your systems updated with the latest patches.
Cyber criminals are always evolving. If you install antivirus software, you can assume the criminals are already five steps past it. If you train your employees in how to avoid phishing scams, the scams will use AI and advanced techniques to become even more sophisticated. When it comes to your data, you can never relax. Once your data is on the dark web, you are at real risk, so take every step necessary to avoid your data getting there to begin with.
Once your data enters the dark web, you’ve lost control—and the consequences can be long-lasting and far-reaching. From identity theft and financial fraud to reputational damage and corporate ransom, stolen data fuels a thriving underground economy. The only way to truly protect your organization is to stay one step ahead: invest in layered security measures, educate your team, and assume that every system is a target. Cybercrime isn’t going away. But with consistent prevention, swift response plans, and a culture of security awareness, you can make your business a much harder target—and keep your data out of the wrong hands. To learn more about how you can keep your data safe, check out the AccuShred blog or reach out to us today!