DNS: How do frauds use a domain name system?

DNS (Domain Name System) is one of the pillars of internet browsing, working as a “translator” that converts website addresses into IP numbers that computers use to communicate.

Because it is a fundamental system, DNS is often seen as a symbol of credibility and trust for users.

However, this trust also makes you vulnerable to cybercriminals, who can tamper with the DNS to carry out scams such as phishing, DNS hijacking, and redirection to fake sites.

These fraudulent practices compromise brand security, divert traffic, and steal sensitive data, putting both users and the integrity of companies at risk.

Does that worry you? So it's worth learning more about DNS and how to protect your online presence. Keep reading!

What is a DNS?

DNS (Domain Name System) is a fundamental technology for web browsing. That's because it converts site names, such as www.example.com, into IP numbers, which are the unique addresses used to identify and locate computers on the internet.

In other words, without DNS, navigation would be extremely complicated, since we would have to memorize long numerical sequences instead of simple website names.

Therefore, we can understand that it works as a “catalog” that connects readable addresses to the correct IPs. Thus, each time you access a website, the DNS performs the translation and directs your request to the appropriate server.

However, DNS is not immune to attacks. After all, cybercriminals can exploit loopholes in the system to hijack domains and redirect users to fraudulent sites.

Proof of this is that according to a study by Infoblox, over 1 million registered domains are vulnerable to attacks daily, with more than 70,000 domains already hijacked.

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The relevance of DNS in the digital ecosystem

DNS is the backbone of the modern digital ecosystem, connecting billions of devices and allowing communication between sites, services, and platforms.

In other words, without DNS, internet browsing would not be possible, as it organizes the way in which information is exchanged between servers and users.

In a scenario where every second counts for the user experience and for the operation of companies, the proper functioning of the DNS is fundamental.

In addition to its function of facilitating access to websites, DNS is also vital for the functioning of applications, e-commerce services, e-mail communication, and even banking systems.

However, this centrality also implies vulnerabilities. DNS is often the target of attacks such as “DNS hijacking”, where cybercriminals manipulate settings to divert traffic and hijack domain control.

Because the system is at the center of all digital transactions, a security breach at this level can compromise the confidentiality, integrity, and availability of the data.

Therefore, DNS protection is essential for cybersecurity and for preserving the trust of users on the internet.

How can DNS be used by digital fraudsters?

With cybercrime losses forecast to reach US$ 10.5 trillion by 2025, according to Cybersecurity Ventures, DNS has become an increasingly common target of fraudulent attacks.

Digital criminals are exploiting this technology to carry out illegal practices, such as domain hijacking, phishing and “DNS spoofing” attacks, diverting users to falsified sites and compromising sensitive data.

These actions cause great financial losses and compromise the security and reputation of the affected companies.

That is, DNS, which should be a simple navigation tool, has become a critical point of vulnerability, allowing sophisticated and difficult to detect fraud.

In the next few topics, we'll detail how these attacks work and the real impact they can have.

DNS Spoofing

DNS Spoofing, also known as DNS cache poisoning, occurs when an attacker alters or manipulates the entries of a DNS server, redirecting users to spoofed sites.

DNS Spoofing can be highly harmful, especially for businesses that rely on online transactions.

According to a Cisco research, approximately 90% of cyber threats include some type of DNS-related attack.

This type of manipulation can not only redirect users to fake sites, but also compromise financial systems, resulting in loss of data and damage to the brand image.

DNS hijacking

DNS hijacking has become a growing concern in recent years. An article published in Veja Negócios portal, reveals that nine out of ten companies that suffer data kidnapping pay for the ransom.

It happens when fraudsters take control of a DNS server or redirect traffic from a page to a Malicious site.

This tactic can be used to hijack legitimate domains, directly affecting a brand's reputation and security.

In addition, this tactic is often used to hide the true origin of an attack, making it difficult to investigate and respond quickly.

In many cases, fraudsters take advantage of these attacks to carry out phishing campaigns and spread malware in a disguised way.

Typosquatting

Typosquatting, also known as “URL hijacking”, is a form of attack that involves creating websites with domains similar to those of well-known brands, but with typos or subtle variations in the URL.

Fraudsters take advantage of users' typos, taking them to counterfeit sites that mimic legitimate platforms.

This attack can result in the theft of sensitive data, financial losses, and damage to the reputation of reputable brands, since consumers may associate these security flaws with trustworthy companies.

DNS-based phishing

DNS-based phishing isn't a new threat, but it has become more sophisticated.

It occurs when attackers manipulate the DNS system to redirect users to counterfeit sites that mimic well-known platforms, such as banking services or e-commerce.

According to one Kaspersky study, one in five Internet users in Brazil experienced at least one phishing attack attempt in 2020.

These attacks have expanded especially on social networks, where fraudsters use malicious links to deceive users and obtain sensitive information.

Fast Flux DNS

Fast Flux DNS is a technique where attackers quickly change the IP addresses associated with a domain, making it difficult to detect malicious sites.

By using Fast Flux DNS, fraudsters make their sites more resistant to blocks, increasing the likelihood that users will be directed to fake pages.

This attack can be used to distribute malware, carry out fraud, or phishing attacks, jeopardizing the security of user data and the reputation of affected companies.

Fake Subdomains

Fake subdomains occur when fraudsters create subdomains that look like those of legitimate brands.

These subdomains may mimic login pages, such as “login.example.com”, tricking users into thinking that they are accessing the official site of a trusted brand.

The objective is to steal personal and financial data, compromising the safety of the victims and the brand image.

This type of attack is a growing threat, and companies must be vigilant in monitoring their domains and subdomains to prevent fraud.

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How can these attacks impact your brand?

In Brazil, 48% of digital companies lose between R$ 3 million and R$ 5 million a year due to fraud, a problem that intensifies especially with the increase in the volume of purchases during events such as Black Friday.

This scenario worries retailers as many scammers exploit outdated systems and the lack of adequate security tools.

In addition, the survey shows that 63% of consumers express concern about not feeling safe when making online purchases.

If you are part of the group that runs these risks, it's worth understanding how fraud directly affects your brand and, especially, how to take steps to minimize impacts.

Loss of customer trust

Fraud incidents can undermine customers' trust, causing them to question the security of their information and transactions.

This mistrust can result in lower loyalty and the search for safer competitors.

Traffic diversions and financial impact

Fraud can divert legitimate traffic, directing it to malicious sites or unfair competitors, resulting in significant financial losses.

Studies indicate that, in Brazil, each real lost in fraud costs companies R$ 4.49, considering expenses for remediation, recovery, and preventive measures.

In addition, cyberattacks grew by more than 60% in Latin America, demonstrating the vulnerability in the current scenario.

Remediation and recovery cost

After a fraud, companies face high costs to identify vulnerabilities, implement corrective measures, and regain customer trust.

These processes require investments in technology, training and, often, in specialized consultancies.

Vulnerability in the eyes of the market

Companies that experience recurring fraud may be perceived as vulnerable, affecting their reputation in the market.

This negative perception can influence decisions by investors and business partners, jeopardizing business opportunities.

Increased customer acquisition cost (CAC)

The mistrust generated by fraud incidents can raise the CAC, as the company will need to invest more in marketing and strategies to convince new customers of its safety and reliability.

Reduction in customer retention rate

Customers who experience or are aware of fraud associated with the company tend to abandon it, resulting in a lower retention rate.

Regaining those customers can be a costly and time-consuming challenge.

Legal risk and regulatory penalties

Failures to protect against fraud can lead to legal implications, including fines and sanctions imposed by regulatory bodies.

Additionally, the company may face lawsuits brought by injured clients, further increasing costs and reputational damage.

Adopting proactive measures to prevent fraud is essential, protecting not only companies' financial assets, but also their reputation and competitiveness in the market.

How to protect your brand against DNS fraud?

Brand safety and consumer protection are interdependent, and the growing sophistication of digital fraud requires special attention.

Um recent study by Serasa Experian revealed that 42% of Brazilians have already been victims of scams, with an average loss of R$ 2,288, and that the concern of companies with fraud increased 58% in one year.

This alarming scenario demonstrates the urgency of effective protection measures, especially when considering the vulnerability of the Domain Name System (DNS).

To combat these digital threats, including those that exploit DNS breaches, comprehensive action is essential, including:

• Active Monitoring: tracking suspicious activity on domains and DNS records;
• Complaints: quick actions on registrars and DNS platforms to remove fraudulent entries;
• Instant analysis: agile processing of DNS-related data to identify threats;
• Notifications and Actions: alerts and measures to neutralize malicious DNS attacks and redirects.

In the next few topics, we will explore each of these actions in detail, focusing on how to protect your brand against fraud and abuse involving the Domain Name System (DNS).

DNSSEC implementation

DNSSEC (Domain Name System Security Extensions) is a set of security extensions for DNS, designed to protect against attacks such as cache poisoning and DNS spoofing.

By implementing DNSSEC, you add a layer of authentication and integrity to your DNS records, ensuring that the DNS responses are genuine and haven't been tampered with by malicious third parties.

This prevents users from being redirected to fake or malicious sites, protecting both the brand and its customers.

Use of firewalls

Firewalls act as security barriers between your network and the internet, monitoring and controlling inbound and outbound traffic.

According to the Kaspersky, keeping your network behind a firewall is one of the most effective ways to defend yourself against a cyberattack.

Properly configuring a firewall to protect your DNS server is important to prevent unauthorized access and denial of service (DoS) attacks.

Additionally, a well-configured firewall can help detect and block malicious traffic that may attempt to exploit vulnerabilities in your DNS system.

Choosing trusted DNS providers

Selecting a reputable and trustworthy DNS provider is critical to your brand's security.

Providers with robust infrastructure, good security, and a proven history of availability offer greater protection against interruptions and attacks.

It's important to check the security policies and protection measures offered by your DNS providers before making a decision.

Continuous monitoring

DNS security is not a one-time task, but an ongoing process. That's why constant monitoring of your DNS records is essential to quickly identify any suspicious activity or unauthorized changes.

This includes verifying record changes, DNS attacks, and other potentially malicious activities.

This is a fundamental point of attention in brand protection, where services such as those offered by Branddir can be a differential, acting proactively and automatically to detect and respond to threats.

Protect your brand with Branddi! Visit our site and learn more!

Conclusion: The importance of DNS protection against digital fraud

Digital fraud is a growing threat, and the Domain Name System (DNS) has become a vulnerable point exploited by criminals.

As we've seen, attacks such as cache poisoning, malicious redirects, and DNS spoofing can lead consumers to fraudulent sites and compromise your brand's reputation.

To this end, implementing DNSSEC, using firewalls, choosing reliable DNS providers and, above all, maintaining continuous monitoring are essential measures to protect your brand and your customers against these threats.

We understand that the complexity of digital security requires robust and automated solutions.

That's why Branddi offers a complete solution to protect your brand against digital fraud on all online platforms.

With 24/7 monitoring, dedicated specialists, and a focus on results, Branddi helps you identify and combat practices of unfair competition, piracy, and any brand abuse.

Don't let your customers fall into the clutches of scammers. Talk to a Branddi's specialist and shield your brand!

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