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Inside the Dark Web: How Andariel Targets U.S. Organizations

Inside the Dark Web: How Andariel Targets U.S. Organizations

The Andariel hacking group, a notorious entity linked to North Korea, has recently shifted its focus towards financially motivated attacks on U.S. organizations. This pivot, observed in August 2024, marks a significant change in the group's operational strategy, raising concerns among cybersecurity experts and organizations alike.

Background of Andariel

Andariel, considered a sub-cluster of the notorious Lazarus Group, is also known as APT45, DarkSeoul, Nickel Hyatt, Onyx Sleet (previously Plutonium), Operation Troy, Silent Chollima, and Stonefly. They’ve been active since at least 2009. 

Operating under North Korea's Reconnaissance General Bureau (RGB), Andariel is notorious for deploying ransomware strains like SHATTEREDGLASS and Maui, and developing custom backdoors such as Dtrack (aka Valefor and Preft), TigerRAT, Black RAT (aka ValidAlpha), Dora RAT, and LightHand.

They also use lesser-known tools like a data wiper called Jokra and an advanced implant named Prioxer for exchanging commands and data with a command-and-control (C2) server. 

In July 2024, a North Korean military intelligence operative from Andariel was indicted by the U.S. Department of Justice (DoJ) for ransomware attacks on healthcare facilities, using the proceeds to conduct further intrusions into defense, technology, and government sectors worldwide.

The Shift in Focus

Symantec, a leading cybersecurity firm, reported that Andariel's recent campaigns have targeted U.S. organizations across various sectors, including finance, healthcare, and retail. 

The group's tactics have evolved to include sophisticated phishing attacks, ransomware deployments, and exploitation of known vulnerabilities in widely used software. This shift is indicative of a broader trend where state-sponsored groups diversify their objectives to include financial motivations alongside traditional espionage.

Techniques and Tactics

Andariel's attack involves a combination of advanced persistent threats (APTs) and financially motivated cybercrime techniques. Some of the key tactics observed include:

1. Phishing Campaigns: Andariel has been leveraging highly targeted phishing emails to gain initial access to corporate networks. These emails often mimic legitimate communications and contain malicious attachments or links that deploy malware upon interaction.

2. Ransomware Attacks: The group has increasingly used ransomware to encrypt critical data and demand hefty ransoms in cryptocurrency. This tactic not only disrupts business operations but also provides a lucrative revenue stream.

3. Exploitation of Vulnerabilities: Andariel has been quick to exploit known vulnerabilities in popular software and systems. By targeting unpatched systems, they can gain unauthorized access and move laterally within networks to exfiltrate sensitive data.

4. Supply Chain Attacks: Another concerning tactic is the compromise of third-party vendors and suppliers to infiltrate larger organizations. This method allows Andariel to bypass direct defenses and gain access through trusted connections.

North Korean Hackers Expand Targets to Healthcare and Energy Sectors


 

A recent report by cybersecurity firm Mandiant reveals that Andariel, a North Korean hacking group, is broadening its scope of attacks to include the healthcare, energy, and financial sectors. This group, likely affiliated with the Democratic People's Republic of Korea Reconnaissance General Bureau, has previously targeted government institutions and critical infrastructure.

Andariel's cyber operations have become increasingly sophisticated over the years. According to Mandiant, the group is now being tracked as APT45 and continues to employ advanced tools and techniques to maximise impact while evading detection. These operations often aim to gather intelligence from government nuclear facilities, research institutes, and defence systems.

Michael Barnhart, Mandiant's principal analyst, highlighted that Andariel has been actively seeking blueprints for military advancements, emphasising the group's flexibility in targeting any entity to achieve its goals, including hospitals. Mandiant's report suggests that Andariel has been involved in ransomware development and deployment, operating under various codenames such as Onyx Sleet, Stonefly, and Silent Chollima. There are also links to the DPRK's notorious Lazarus hacking group.

North Korea is one of the few nations that supports for-profit hacking, using stolen funds to support the development of weapons of mass destruction and to bolster its economy. The report notes that Andariel directly targeted nuclear research facilities and power plants in 2019, including a facility in India. Following a suspected COVID-19 outbreak in North Korea in 2021, the group expanded its focus to the healthcare and pharmaceutical sectors.

Government and Defense Espionage

Initially, Andariel's activities centred on espionage campaigns against government agencies and defence industries. Over time, the group has shifted to include financially motivated operations, such as targeting the financial sector. Barnhart attributed many of North Korea's military advancements to Andariel's successful espionage efforts against governments and defence organisations globally.

Use of Artificial Intelligence

The report also references a January warning from the South Korean National Intelligence Service about North Korea's use of generative artificial intelligence technologies to conduct sophisticated cyberattacks and identify potential targets. This development accentuates the growing complexity and adaptability of North Korean hacking groups like Andariel.

Mandiant, a part of Google, has been working closely with multiple U.S. government agencies, including the FBI, to monitor Andariel's activities. This collaborative effort aims to mitigate the threat posed by the group and to protect critical infrastructure from its attacks.

The Mandiant report paints a concerning picture of Andariel's expanding operations and the increasing sophistication of its cyberattacks. As the group continues to evolve and adapt, it remains a substantial threat to various sectors worldwide, including healthcare, energy, and finance.


Seoul Police Reveals: North Korean Hackers Stole South Korean Anti-Aircraft Data


South Korea: Seoul police have charged Andariel, a North Korea-based hacker group for stealing critical defense secrets from South Korea’s defense companies. Allegedly, the laundering ransomware is redirected to North Korea. One of the 1.2 terabytes of data the hackers took was information on sophisticated anti-aircraft weaponry.  

According to the Seoul Metropolitan Police Agency, the hacker group utilized servers that they had rented from a domestic server rental company to hack into dozens of South Korean organizations, including defense companies. Also, the ransomware campaign acquired ransoms from a number of private sector victim firms. 

Earlier this year, the law enforcement agency and the FBI jointly conducted an investigation to determine the scope of Andariel's hacking operations. This was prompted by reports from certain South Korean corporations regarding security problems that were believed to be the result of "a decline in corporate trust." 

Andariel Hacker Group 

In an investigation regarding the origin of Andariel, it was found that it is a subgroup of the Lazarus Group. The group has stolen up to 1.2 terabytes of data from South Korean enterprises and demanded 470 million won ($357,000) in Bitcoin as ransom from three domestic and international organizations.  

According to a study conducted by Mandiant, it was revealed that Andariel is operated by the North Korean intelligence organization Reconnaissance General Bureau, which gathers intelligence for the regime's advantage by mainly targeting international enterprises, governmental organizations, defense companies, and financial services infrastructure. 

Apparently, the ransomware group is also involved in cybercrime activities to raise funds for conducting its operation, using specially designed tools like the Maui ransomware and DTrack malware to target global businesses. In February, South Korea imposed sanctions on Andariel and other hacking groups operating in North Korea for engaging in illicit cyber operations to fund the dictatorial regime's nuclear and missile development projects.  

The threat actor has used a number of domestic and foreign crypto exchanges, like Bithumb and Binance, to launder the acquired ransom. Till now, a sum of 630,000 yuan ($89,000) has been transferred to China's K Bank in Liaoning Province. The hackers proceeded to redirect the laundered money from the K Bank branch to a location close to the North Korea-China border. 

Seoul police noted that they have seized the domestic servers and virtual asset exchange used by Andariel to conduct their campaigns. Also, the owner of the account, that was used in transferring the ransom, has been detained. 

"The Security Investigation Support Department of the Seoul Metropolitan Police Agency is actively conducting joint investigations with related agencies such as the U.S. FBI regarding the overseas attacks, victims and people involved in this incident, while continuing to investigate additional cases of damage and the possibility of similar hacking attempts," the agency said.

The police have warned businesses of the threat actor and have advised them to boost their cybersecurity and update security software to the latest versions. It has also been advised to organizations to encrypt any critical data, in order to mitigate any future attack. 

Moreover, police are planning to investigate server rental companies to verify their subscribers’ identities and to ensure that the servers have not been used in any cybercrime activity.