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Amid Federal Crackdown, Microsoft Warns Against Rising North Korean Jobs Scams

Amid Federal Crackdown, Microsoft Warns Against Rising North Korean Jobs Scams

North Korean hackers are infiltrating high-profile US-based tech firms through scams. Recently, they have even advanced their tactics, according to the experts. In a recent investigation by Microsoft, the company has requested its peers to enforce stronger pre-employment verification measures and make policies to stop unauthorized IT management tools. 

Further investigation by the US government revealed that these actors were working to steal money for the North Korean government and use the funds to run its government operations and its weapons program.  

US imposes sanctions against North Korea

The US has imposed strict sanctions on North Korea, which restrict US companies from hiring North Korean nationals. It has led to threat actors making fake identities and using all kinds of tricks (such as VPNs) to obscure their real identities and locations. This is being done to avoid getting caught and get easily hired. 

Recently, the threat actors have started using spoof tactics such as voice-changing tools and AI-generated documents to appear credible. In one incident, the scammers somehow used an individual residing in New Jersey, who set up shell companies to fool victims into believing they were paying a legitimate local business. The same individual also helped overseas partners to get recruited. 

DoJ arrests accused

The clever campaign has now come to an end, as the US Department of Justice (DoJ) arrested and charged a US national called Zhenxing “Danny” Wanf with operating a “year-long” scam. The scheme earned over $5 million. The agency also arrested eight more people - six Chinese and two Taiwanese nationals. The arrested individuals are charged with money laundering, identity theft, hacking, sanctions violations, and conspiring to commit wire fraud.

In addition to getting paid in these jobs, which Microsoft says is a hefty payment, these individuals also get access to private organization data. They exploit this access by stealing sensitive information and blackmailing the company.

Lazarus group behind such scams

One of the largest and most infamous hacking gangs worldwide is the North Korean state-sponsored group, Lazarus. According to experts, the gang extorted billions of dollars from the Korean government through similar scams. The entire campaign is popular as “Operation DreamJob”. 

"To disrupt this activity and protect our customers, we’ve suspended 3,000 known Microsoft consumer accounts (Outlook/Hotmail) created by North Korean IT workers," said Microsoft.

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

2025 H1 records all-time crypto theft

In the first half of 2025, hackers stole a record $2.1 billion in cryptocurrency, marking an all-time high. The data highlights the vulnerable state of the cryptocurrency industry. North Korean state-sponsored hackers accounted for 70% of the losses, responsible for USD 1.6 billion, rising as the most notorious nation-state actor in the crypto space, according to a report by TRM Labs

This indicates a significant increase in illegal operations, surpassing the 2022 H1 record by 10% and nearly matching the total amount stolen for the entire 2022 year, highlighting the danger to digital assets. 

Implications of nation-state actors in crypto attacks

The biggest cryptocurrency attack has redefined the H1 2025 narrative, the attack on Dubai-based crypto exchange Bybit. TRM believes the attack highlights a rising effort by the Democratic People’s Republic of Korea (DPRK) for cryptocurrency profits that can help them escape sanctions and fund strategic aims like nuclear weapons programs, besides being a crucial component of their statecraft. 

“Although North Korea remains the dominant force in this arena, incidents such as reportedly Israel-linked group Gonjeshke Darande (also known as Predatory Sparrow) hacking Iran’s largest crypto exchange, Nobitex, on June 18, 2025, for over USD 90 million, suggest other state actors may increasingly leverage crypto hacks for geopolitical ends,” TRM said in a blog post. 

Mode of operation

"Infrastructure attacks — such as private key and seed phrase thefts, and front-end compromises — accounted for over 80% of stolen funds in H1 2025 and were, on average, ten times larger than other attack types," reports TRM. These attacks target the technical spine of the digital asset system to get illicit access, reroute assets, and mislead users. Infrastructure attacks are done via social engineering or insider access and expose fractures in the cryptosecurity foundation.

Takeaways 

H1 2025 has shown a shift towards crypto hacking, attacks from state-sponsored hackers, and geopolitically motivated groups are rising. Large-scale breaches related to nation-state attacks have trespassed traditional cybersecurity. The industry must adopt advanced, effective measures to prevent such breaches. Global collaboration through information sharing and teamed efforts can help in the prosecution of such cyber criminals. 

North Korea-Linked Hackers Behind $2.1 Billion in Crypto Theft in Early 2025

 

A new report from blockchain analytics firm TRM Labs reveals that hackers stole an unprecedented $2.1 billion in cryptocurrency during the first half of 2025—marking the highest amount ever recorded for a six-month period. A staggering 70% of the total, or around $1.6 billion, has been attributed to cybercriminal groups sponsored by North Korea. 

According to TRM Labs’ “H1 2025 Crypto Hacks and Exploits” report, this figure surpasses the previous record set in 2022 by 10%, pointing to an escalating trend in high-stakes cybercrime. The report also emphasizes how North Korea has solidified its role as the leading state-backed threat actor in the cryptocurrency ecosystem.  

“These thefts are not just criminal—they’re tools of statecraft,” the report states, highlighting how stolen crypto plays a strategic role in funding the sanctioned regime’s national objectives, including its controversial weapons program. 

Much of this year’s unprecedented losses stem from a single massive incident: the $1.5 billion hack targeting Ethereum and related assets held by the crypto exchange Bybit in February. This attack is being considered the largest theft in the history of the cryptocurrency sector.  

Safe, a provider of multi-signature wallet solutions, traced the breach back to a compromised laptop belonging to one of its senior developers. The device was reportedly infected on February 4 after interacting with a malicious Docker project. The infiltration ultimately allowed attackers to gain unauthorized access to private keys.  

Both U.S. law enforcement and TRM Labs have linked the Bybit attack to North Korean hackers, aligning with prior assessments that the regime increasingly relies on crypto theft as a state-funded operation. 

This event drastically skewed the average size of crypto heists for 2025 and emphasized the changing nature of these attacks—from purely profit-driven motives to broader geopolitical strategies. 

TRM Labs noted that 80% of all crypto losses in 2025 were due to infrastructure breaches, with attackers exploiting vulnerabilities in systems that store private keys and seed phrases—essential components in controlling digital wallets. 

Analysts warn that such incidents signal a shift in the threat landscape. “Crypto hacking is becoming less about financial gain and more about political symbolism or strategic advantage,” TRM concluded. 

As the year continues, security experts urge crypto platforms and users to enhance infrastructure protection, especially against sophisticated, nation-backed threats that blur the line between cybercrime and cyberwarfare.

North Korean Hackers Target Fintech and Gaming Firms with Fake Zoom Apps

 

A newly uncovered cyber campaign is targeting organizations across North America, Europe, and the Asia-Pacific by exploiting fake Zoom applications. Cybersecurity experts have traced the operation to BlueNoroff, a notorious North Korean state-backed hacking group affiliated with the Lazarus Group. The campaign’s primary focus is on the gaming, entertainment, and fintech sectors, aiming to infiltrate systems and steal cryptocurrency and other sensitive financial data. 

Attack strategy 

The attack begins with a seemingly innocuous AppleScript disguised as a routine maintenance operation for Zoom’s software development kit (SDK). However, hidden within the script—buried beneath roughly 10,000 blank lines—are malicious commands that quietly download malware from a counterfeit domain, zoom-tech[.]us. 

Once the malware is downloaded, it integrates itself into the system through LaunchDaemon, granting it persistent and privileged access at every system startup. This allows the malware to operate covertly without raising immediate alarms. The malicious software doesn’t stop there. It fetches additional payloads from compromised infrastructure, presenting them as legitimate macOS components like “icloud_helper” and “Wi-Fi Updater.” 

These files are designed with anti-forensics techniques to erase temporary files and conceal their activity, all while maintaining a hidden backdoor for remote control and data exfiltration. This deceptive approach is particularly dangerous in remote work environments, where minor software issues are often resolved without deep inspection—making it easier for such malware to slip past unnoticed. 

Motives behind the attack

BlueNoroff’s intent appears financially driven. The malware specifically searches for cryptocurrency wallet extensions, browser-stored login credentials, and authentication keys. In one known incident dated May 28, a Canadian online gambling platform fell victim to this scheme after its systems were compromised via a fraudulent Zoom troubleshooting script. 

Protection Measures for Organizations Given the growing sophistication of such campaigns, security experts recommend several protective steps: 

• Independently verify Zoom participants to ensure authenticity. 

• Block suspicious domains like zoom-tech[.]us at the firewall level. 

• Deploy comprehensive endpoint protection that can detect hidden scripts and unauthorized daemons. 

• Invest in reliable antivirus and ransomware protection, especially for firms with cryptocurrency exposure. 

• Use identity theft monitoring services to detect compromised credentials early. 

• Train employees to recognize and respond to social engineering attempts. 

• Secure digital assets with hardware wallets instead of relying on software-based solutions alone.

US Seizes $7.7 Million From Crypto Linked to North Korea's IT Worker Scam


The US Department of Justice has filed a civil forfeiture complaint against North Korean IT workers for illegally gaining employment with US businesses, and earning millions for the Korean government, which amounts to violations of sanctions.

The government seized $7.7m in funds in 2023 that involved Sim Hyon Sop- a worker at the North Korean Foreign Trade Bank (FTB) who joined hands with IT workers to launder the money for Pyongyang.

According to the complaint, the North Korean IT workers escaped security via fraud IDs and tactics that hid their real location. The salaries were credited in stablecoins like USDT and USDC.

To launder the money, employees created accounts using fake IDs, transferred funds in small amounts to other blockchains (chain hopping), and/or converted them into other digital currencies (token swapping).

Scammers also bought non-fungible tokens (NFTs) and used US accounts to make their operations look real. Sim worked with Kim Sang Man, the CEO of the “Jinyong IT Cooperation Company,” who served as a middleman between the FTB and the IT workers. 

According to the Justice Department’s National Security Division, North Korea, for years has “exploited global remote IT contracting and cryptocurrency ecosystems to evade US sanctions and bankroll its weapons programs.” 

Department head Sue Bai said, “Today’s multimillion-dollar forfeiture action reflects the Department’s strategic focus on disrupting these illicit revenue schemes. We will continue to use every legal tool available to cut off the financial lifelines that sustain the DPRK and its destabilizing agenda.”

North Korean IT workers have been slithering their way into employment in US firms for many years.  However, the advancement of these operations was exposed in 2024 when security expert KnowBe4 disclosed that even their organization was tricked into hiring an IT specialist from North Korea.

After that, Google has cautioned that US businesses remain a primary target and also warned that the threat actors have nor started focusing their operations at Europan firms.  While few do normal work to get paid, there is also a concern that their organization access allows them to extract important data and use it for extortion.

North Korea’s Global Cybercrime Network Uncovered: Fake IT Workers Funding Regime's Ambitions

 

A new report by cybersecurity firm DTEX has exposed how North Korea is operating a sophisticated international cybercrime network by embedding fake information technology workers within leading global corporations. These operatives, disguised as freelance developers, are channeling millions in stolen cryptocurrency to fund the reclusive nation’s military and weapons programs.

According to the report, North Korean agents are not driven by ideology but by a systemic need to survive. Trained from a young age, many are groomed to become covert cyber operatives or IT contractors. Two individuals, using the aliases “Naoki Murano” and “Jenson Collins,” were found residing in Russia and are believed to be involved in infiltrating Western companies. They’ve been linked to a $6 million cryptocurrency theft.

The regime operates through shadowy IT entities like Chinyong, which positions agents in countries like China, Laos, and Russia. These agents gain trust within blockchain and cryptocurrency projects, ultimately diverting digital assets back to Pyongyang. Since 2017, North Korea has reportedly funneled tens of millions of dollars through such schemes—prompting U.S. sanctions for financing weapons development (see: US Sanctions North Korean Entities for Sending Regime Funds).

The report states that North Korea’s cyber program has reached a pivotal stage, with its tactics becoming more aggressive and unpredictable. The regime now deploys techniques ranging from supply chain attacks to financial sector infiltration and even online propaganda. DTEX researchers noted that these operatives are so deeply integrated into major cryptocurrency and Web3 initiatives that, “it would seem that every other Web3 project has a North Korean on the payroll.”

“The threat of unintentionally hiring North Korean IT workers is larger than most people realize,” Kevin Mandia, founder and former CEO of Mandiant, said in a statement accompanying the report. “It's cover is global and active right now - which is why the industry and government need to work together to come up with solutions to counter the threat.”

The study also challenges the notion that North Korean cyber operatives follow rigid roles. Instead, many shift between missions, take on leadership responsibilities, and reuse false identities—suggesting a highly adaptive and fluid structure.

Past investigations have revealed that North Korean attacks on European tech firms were often facilitated by individuals operating from the U.S. and the U.K. An April report by Mandiant warned of increasing attempts by North Korean IT workers to secure positions in defense and government agencies, with U.S. businesses being their primary focus—even as operations grow across Europe (see: North Korean IT Scammers Targeting European Companies).

Michael Barnhart, the lead analyst behind the DTEX report, said his research is based on open-source intelligence, testimonies from defectors, blockchain forensics, and insights from Web3 infrastructure. He also leveraged proprietary datasets from unnamed partners to trace how North Korean agents shift money, access, and identities across borders.

“DPRK operatives are persistent,” Barnhart wrote, adding that North Korean cyber agents “do not take kindly to scrutiny” and “will try to uncover who is studying them and how.”

North Korea Establishes Research Center 227 to Strengthen Cyber Warfare Capabilities

 

North Korea has reportedly launched a new cyber research unit, Research Center 227, as part of its efforts to enhance hacking capabilities and intelligence operations. According to Daily NK, this center is expected to function continuously, providing real-time support to North Korean intelligence agencies by developing advanced cyber tools. 

The initiative highlights North Korea’s increasing reliance on cyber warfare as a key component of its broader security strategy. In February 2025, North Korean leadership directed the Reconnaissance General Bureau (RGB) under the General Staff Department to strengthen the nation’s offensive cyber capabilities. As part of this directive, Research Center 227 was formed to focus on the development of sophisticated hacking techniques and cyber warfare tools. 

These efforts are primarily aimed at infiltrating foreign cybersecurity systems, disrupting critical infrastructure, and stealing sensitive data from targeted nations. The research facility will recruit approximately 90 highly skilled professionals, including graduates from top universities and individuals with advanced degrees in computer science. Unlike frontline cyber operatives who execute attacks, these researchers will focus on creating and refining malware, intrusion methods, and other offensive cyber tools. 

By centralizing its cyber research efforts, North Korea aims to develop more sophisticated digital weapons that can be deployed by operational hacking units in intelligence and espionage missions. North Korea has significantly expanded its cyber operations in recent years, with its state-sponsored hacking groups, such as Lazarus, launching large-scale attacks across the globe. These groups have been responsible for financial cybercrimes, espionage, and the theft of cryptocurrency, targeting both private companies and government agencies. 

Their activities have included spreading malware, infiltrating secure networks, and deploying information-stealing tools to compromise Western organizations. One particularly deceptive tactic used by North Korean hackers is the “Contagious Interview” campaign, in which cybercriminals pose as recruiters or hiring managers to manipulate professionals into downloading malicious software disguised as video conferencing applications. 

This technique has allowed hackers to gain access to corporate systems and steal valuable credentials. Additionally, there have been numerous cases of North Korean operatives using false identities to secure employment in global technology firms, potentially accessing critical software infrastructure or engaging in fraudulent activities. With the establishment of Research Center 227, North Korea is likely to intensify its cyber warfare operations, making its hacking activities more strategic and efficient. 

The development of custom malware, sophisticated intrusion techniques, and advanced cyber espionage methods could further increase the scale and complexity of North Korean cyberattacks. As these threats evolve, governments and cybersecurity professionals worldwide will need to bolster their defenses against the growing risks posed by North Korea’s cyber capabilities.

North Korean Hackers Exploit ZIP Files in Sophisticated Cyber Attacks

 

State-sponsored hacking group APT37 (ScarCruft) is deploying advanced cyber-espionage tactics to infiltrate systems using malicious ZIP files containing LNK shortcuts. These files are typically disguised as documents related to North Korean affairs or trade agreements and are spread through phishing emails.

Once opened, the attack unfolds in multiple stages, leveraging PowerShell scripts and batch files to install the RokRat remote access Trojan (RAT) as the final payload.

The infection starts with carefully crafted phishing emails, often using real information from legitimate websites to enhance credibility. These emails contain malicious ZIP attachments housing LNK files. When executed, the LNK file verifies its directory path, relocating itself to %temp% if necessary.

It then extracts multiple components, including:

-A decoy HWPX document
-A batch script (shark.bat)

Additional payloads like caption.dat and elephant.dat
The shark.bat script executes PowerShell commands discreetly, launching the elephant.dat script, which decrypts caption.dat using an XOR key. The decrypted content is then executed in memory, ultimately deploying RokRat RAT.

Once active, RokRat collects detailed system information, such as:
  • Operating system version
  • Computer name
  • Logged-in user details
  • Running processes
  • Screenshots of the infected system
The stolen data is then exfiltrated to command-and-control (C2) servers via legitimate cloud services like pCloud, Yandex, and Dropbox, utilizing their APIs to send, download, and delete files while embedding OAuth tokens for stealthy communication.

RokRat also allows attackers to execute remote commands, conduct system reconnaissance, and terminate processes. To avoid detection, it implements anti-analysis techniques, including:
  • Detecting virtual environments via VMware Tools
  • Sandbox detection by creating and deleting temporary files
  • Debugger detection using IsDebuggerPresent
The malware ensures secure communication by encrypting data using XOR and RSA encryption, while C2 commands are received in AES-CBC encrypted form, decrypted locally, and executed on the compromised system. These commands facilitate data collection, file deletion, and malware termination.

By leveraging legitimate cloud services, RokRat seamlessly blends into normal network traffic, making detection more challenging.

“This sophisticated approach highlights the evolving tactics of APT37, as they continue to adapt and expand their operations beyond traditional targets, now focusing on both Windows and Android platforms through phishing campaigns.”

As APT37 refines its cyberattack strategies, organizations must remain vigilant against such persistent threats and enhance their cybersecurity defenses.

Hackers Disguise as IT Employees: FBI Warns to Disable Local Admin Accounts

Hackers Disguise as IT Employees: FBI Warns to Disable Local Admin Accounts

Hackers use various ways to steal user data, one recent trend, according to the FBI, shows they have started gaining employment with companies. The agency has pushed out public announcement I-012325-PSA, warning organizations in the U.S. to disable local admin accounts, business must pay attention to it.

North Korean Hackers Disguising as IT Workers

The FBI has warned the public, private sector, and the world about the “victimization of US-based businesses”, as cyberattacks involving remote IT workers from North Korea are on the rise. It has noticed North Korean IT workers gaining illegal access to systems to steal confidential data and launch other cyber-crime operations. 

In an FBI announcement reported by Forbes, it was disclosed that “victims have seen proprietary data and code held to ransom,” and “the copying of corporate code repositories to attacker user profiles and personal cloud accounts.” Additionally,  the attackers have also “attempted harvesting of company credentials and session cookies for further compromise opportunities.” 

Understanding the “Principle of Least Privilege”

Law enforcement and intelligence agencies like the FBI and NSA (National Security Agency) have advised the principle of least privilege,  to “only allow designated administrator accounts to be used for administrative purposes.” The aim is to limit the administrative rights available to Mac and Windows users to ensure security. 

The principle of least privilege gives admin account access to only selected people, and nobody else. The method ensures company employees only have access to particular resources needed to get the job done, not admin rights. For instance, the user account completes day-to-day needs, whereas for something critical, like software installation, the systems will ask for admin credentials. 

Wikipedia is one great example of using this technique, it has user accounts for making backups that don’t need to install software and only have rights for running backups and related applications. 

Mitigating Threats- Advice from FBI and Security Experts

The FBI suggests businesses disable local administrator accounts and restrict privileges for installing remote desktop apps, keeping an eye out for any unusual network traffic. It has warned organizations to remember that “North Korean IT workers often have multiple logins into one account in a short period of time,” coming from various IP addresses linked with different countries. 

The agency has also advised HRs, development teams, and hiring managers to focus “on changes in address or payment platforms during the onboarding process.”

North Korean Hackers Exploit RID Hijacking to Gain Full Control Over Windows Systems

 


A North Korean cybercriminal group, Andariel, has been found using a stealthy hacking technique called RID hijacking to gain full control over Windows systems. This method allows attackers to manipulate a computer’s security settings, turning a low-privilege user account into an administrator account and granting them hidden control over the system.

What is RID Hijacking and How Does It Work?

Windows assigns each user account a Security Identifier (SID), which includes a Relative Identifier (RID) that defines the account’s access level. Key RIDs include:

  • 500 – Default administrator account
  • 501 – Guest account
  • 1000+ – Regular user accounts

Hackers exploit this system by modifying the RID of a normal user account to match that of an administrator. Since Windows determines permissions based on RID values, the system unknowingly grants higher-level access to what appears to be a low-privilege account. However, this attack requires deep access to the system’s core security files, specifically the Security Account Manager (SAM) registry, where user login details are stored.

Researchers from AhnLab Security Intelligence Center (ASEC) have linked these attacks to Andariel, a North Korean hacking group that is part of Lazarus, a well-known state-sponsored cybercrime organization. Andariel typically gains initial access by exploiting software vulnerabilities or tricking users into downloading malware. Once inside, they use hacking tools like PsExec and JuicyPotato to obtain SYSTEM-level privileges, the highest level of access on a Windows machine.

However, SYSTEM-level access has limitations, such as the inability to log in remotely, lack of persistence after a system restart, and high visibility to security systems. To overcome these, Andariel creates a hidden user account using the Windows "net user" command, adding a "$" symbol at the end of the username to make it invisible in regular user lists. They then modify its RID to that of an administrator, granting it full control over the system while remaining undetected.

How to Defend Against RID Hijacking

To protect against RID hijacking, organizations and IT administrators can take the following steps:

  1. Monitor User Login Activity: Use the Local Security Authority (LSA) Subsystem Service to track unusual logins or permission changes.
  2. Secure Critical System Files: Restrict unauthorized modifications to the SAM registry, where login credentials are stored.
  3. Block Hacking Tools: Prevent tools like PsExec and JuicyPotato from running, as they are commonly used for privilege escalation.
  4. Implement Multi-Factor Authentication (MFA): Require an extra authentication step for all accounts, even low-level ones, to prevent unauthorized access.
  5. Regularly Audit User Accounts: Check for hidden or suspicious accounts, especially those with "$" symbols or unusual RID values.

RID hijacking has been known since 2018, when cybersecurity researchers first demonstrated it as a way to maintain persistent access on Windows systems. However, its recent use by North Korean state-sponsored hackers highlights the growing sophistication of cyberattacks. By making small, undetectable changes to Windows user settings, hackers can silently maintain control over a compromised system, making it much harder for security teams to remove them.

The use of RID hijacking by North Korean hackers underscores the importance of proactive cybersecurity measures. Organizations must monitor user accounts, detect hidden activity, and secure critical system files to defend against such stealthy attacks. By staying vigilant and implementing robust security practices, businesses can better protect their systems from advanced threats like RID hijacking.

North Korean Hackers Suspected in $70M Phemex Crypto Exchange Exploit

 

A significant cyberattack on the Singapore-based cryptocurrency exchange Phemex has resulted in the loss of over $70 million in digital assets. Blockchain security experts believe the incident may be linked to North Korean hackers. The breach was detected on Thursday, prompting Phemex to suspend withdrawals after receiving alerts from security firms about unusual activity. 

Initially, approximately $30 million was reported stolen, but the attack persisted, leading to further asset depletion. The company’s CEO, Federico Variola, confirmed that the exchange’s cold wallets remained intact and unaffected. According to cybersecurity analysts, the tactics used in this attack resemble previous high-profile exploits targeting crypto exchanges.

The perpetrators swiftly transferred various tokens across multiple blockchain networks, beginning with high-value assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), along with stablecoins like USDC and USDT. Since stablecoins can be frozen, the attackers quickly converted them into Ethereum before moving on to smaller, less liquid tokens. 

Researchers tracking the breach noted that hundreds of different cryptocurrencies were stolen, with attackers draining even minor altcoins. The process was reportedly carried out manually rather than through automated scripts, with assets transferred to fresh addresses before being laundered through additional layers of transactions. Experts believe the scale and coordination suggest the involvement of an experienced hacking group.  

A pseudonymous investigator known as SomaXBT.eth pointed to a North Korean-affiliated group as the likely culprit, noting similarities between this incident and previous attacks attributed to state-backed hackers. Another security analyst compared the breach to the attack on Japan’s DMM platform, which resulted in the theft of $308 million and was linked to the North Korean hacking group TraderTraitor. Data from blockchain explorers shows that the attackers utilized at least 275 transactions across Ethereum-based chains, using multiple addresses to siphon funds from networks such as Arbitrum, Base, Polygon, Optimism, and zkSync. 

Additionally, transactions were tracked across Avalanche, Binance Smart Chain, Polkadot, Solana, and Tron. A primary wallet connected to the breach handled at least $44 million in stolen funds, while notable amounts included $16 million in SOL, $12 million in XRP, and $5 million in BTC. Despite the losses, Phemex still holds roughly $1.8 billion in assets, the majority of which are in its native PT token, followed by significant holdings in Bitcoin and USDT. 

The exchange has announced that it is developing a compensation plan for affected users. As of the latest reports, activity from the attacker’s addresses appears to have ceased, with the final recorded transactions occurring around 10:00 AM ET.

Sanctions Imposed on North Korean Cyber Activities Supporting Nuclear Ambitions

 

South Korea has announced sanctions against 15 North Korean nationals and the Chosun Geumjeong Economic Information Technology Exchange Corporation for orchestrating schemes that finance North Korea’s nuclear weapons and missile programs. These measures target a global network involved in IT job fraud, cryptocurrency theft, and cyberattacks. 

The sanctioned individuals are linked to the 313th General Bureau, a division of North Korea’s Ministry of Munitions Industry. This bureau oversees the production and development of weapons and ballistic missiles. According to South Korea’s Peninsula Policy Bureau, these operatives are dispatched to countries such as China, Russia, Southeast Asia, and Africa. Using fake identities, they secure positions in international IT companies, generating revenue funneled back to the regime. 

Central to this operation is the Chosun Geumjeong Economic Information Technology Exchange Corporation. This organization plays a critical role by deploying IT professionals abroad and channeling significant financial resources to North Korea’s military projects. In recent years, North Korean operatives have increasingly infiltrated Western companies by posing as IT workers. This tactic not only generates revenue for the regime but also enables cyber espionage and theft. These workers have been found installing malware, stealing sensitive company data, and misappropriating funds. Some have even attempted to infiltrate secure software development environments. 

Despite the gravity of these actions, the stigma associated with hiring fraudulent workers has led many companies to keep such breaches private, leaving the true scope of the issue largely unknown. Additionally, South Korea accuses North Korea of being a major player in global cryptocurrency theft. A 2024 United Nations report found that North Korean hackers carried out 58 cyberattacks against cryptocurrency firms between 2017 and 2023, amassing approximately $3 billion in stolen funds. North Korean nationals have also reportedly violated international sanctions by earning income through employment in various industries, including construction and hospitality. 

These activities pose significant risks to the global cybersecurity landscape and international stability. South Korea asserts that the funds generated through these operations directly support North Korea’s nuclear and missile programs, emphasizing the need for a unified international response. By imposing these sanctions, South Korea aims to disrupt North Korea’s illicit financial networks and mitigate the broader risks posed by its cyber activities. 

This marks a crucial step in the global effort to counter the threats associated with Pyongyang’s nuclear ambitions and its exploitation of cyberspace for financial gain.

Cyber Threat Alert for South Korea from North Korean Hackers

 


In a recent cyber-espionage campaign targeted at the United States, North Korean state-linked hacker ScarCruft recently exploited a zero-day vulnerability in Internet Explorer to distribute RokRAT malware to targets nationwide. APT37, or RedEyes as it is sometimes called, is one of the most notorious North Korean state-sponsored hacking groups, and its activities are thought to be aimed at cyber espionage. 

There is typically a focus on human rights activists from South Korea, defectors from the country, and political entities in Europe from this group. An unknown threat actor with ties to North Korea has been observed delivering a previously undocumented backdoor and remote access Trojan (RAT) called VeilShell as part of a campaign targeted at Cambodia and potentially other Southeast Asian countries, including Indonesia, Malaysia, and Thailand. 

Known to Securonix as SHROUDED#SLEEP, the activity is believed to have been carried out by APT37, which is also known as InkySquid, Reaper, RedEyes, Ricochet Chollima, Ruby Sleet, and ScarCruft as well as several other names. ScarCruft, also known as APT37, InkySquid, Nickel Foxcroft, Reaper, RedEyes, and Ricochet Chollima, is a state-sponsored cyber-espionage threat group that almost entirely targets South Korean individuals and organizations. 

It uses spear phishing to deliver customized tools via phishing, watering holes, and zero-days for Internet Explorer. It has been reported by AhnLab that APT37 compromised one of the servers of a domestic advertising agency. Hence, the purpose is to push specially crafted 'Toast ads' as a part of an unidentified free software that is widely used by South Koreans. As a result of the CVE-2024-38178 flaw found in the JavaScript 9.dll file (Chakra) of Internet Explorer used for displaying these advertisements, it caused the JavaScript file named 'ad_toast' to trigger remote code execution via CVE-2024-38178 in the JavaScript9.dll file.

There is a deep correlation between the malware that was dropped in this attack and the RokRAT malware, which ScarCruft has been using for years to launch attacks. In essence, RokRATs primary function is to exfiltrate to Yandex cloud instances every 30 minutes file matching 20 extension types (including .doc, .mdb, .xls, .ppt, .txt, .amr) that match these extensions. In addition to keylogging, Keylogger also monitors for changes made to the clipboard and captures screenshots (every three minutes) as well. 

In July 2022, ScarCruft, a North Korean threat actor who operates in North Korean cyberspace, began experimenting with oversized LNK files as a delivery route for RokRAT malware, just a couple of months after Microsoft began blocking macros by default across several Office documents. Check Point has released a new report on its technical analysis of RokRAT that concludes that the malware has not changed significantly over the years, but the deployment method has evolved. RokRAT now uses archives that contain LNK files, resulting in infection chains that move through multiple stages. 

As a result of this round of activity, is another indication of a major trend in the threat landscape, where both APTs, as well as cybercriminals, will try to overcome the restriction on macros coming from untrusted sources. Having made the news in the past few days, a new campaign with the intriguing name "Code on Toast," has raised serious concerns about the vulnerability of software still embedded in widely used systems, even after the retirement of Internet Explorer. According to a joint report by the National Cyber Security Center (NCSC) of South Korea, and AhnLab (ASEC), the incident occurred earlier this year. 

There was a unique way for these malware infections to be spread by using toast pop-up ads as how the campaign was delivered. There is a unique aspect of this campaign that focuses on the way ScarCruft distributes its malware through the use of toast notifications and small pop-ups that appear when antivirus software or free utilities are running. As a result of ScarCruft’s compromise of the server of a domestic ad agency in South Korea, a malicious "toast ad" made by ScarCruft was sent to many South Korean users through a popular, yet unnamed, free piece of software. 

To accomplish ScarCruft’s attack, a zero-day Internet Explorer vulnerability, CVE-2024-38178, with a severity rating of 7.5, must be exploited cleverly. As a consequence of this, Edge users in Internet Explorer mode can potentially execute remote code through a memory corruption bug in the Scripting Engine, which can result in remote code execution. This vulnerability was patched for August 2024 as part of Microsoft's Patch Tuesday update, part of this annual update program. 

By using toast notifications, typically harmless pop-up ads from anti-virus software or utility programs, the group silently delivered malware through a zero-click infection method using a zero-click virus delivery mechanism. As a result, it has become necessary for an attacker to convince a user to click on a URL that has been specially crafted to initiate the execution of malicious code to successfully exploit a vulnerability. 

Having used such advanced techniques, ScarCruft clearly emphasizes the need for South Korea's digital landscape to remain protected from such threats in the future. It is unfortunate that no matter how much effort is put into phasing out outdated systems, security vulnerabilities have caused problems in legacy components like Internet Explorer. Although Microsoft announced it would retire Internet Explorer at the end of 2022, many of the browser's components remain in Windows, or they are being used by third-party products, allowing threat actors to come across new vulnerabilities and exploit them for their purposes. As a result of this campaign, organizations will be reminded of the importance of prioritizing cybersecurity updates and maintaining robust defences against increasingly sophisticated cyber threats backed by governments.

North Korean Hackers Develop Linux Variant of FASTCash Malware Targeting Financial Systems

 

A new Linux variant of FASTCash malware has surfaced, targeting the payment switch systems of financial institutions. North Korean hackers, linked to the Hidden Cobra group, have expanded their cyber arsenal to now include Ubuntu 22.04 LTS distributions. Previously, the malware targeted Windows and IBM AIX systems. These payment switches route transactions between ATMs and banks, and the malware intercepts ISO8583 messages, modifying transaction responses from “decline” to “approve.” This manipulation authorizes fraudulent cash withdrawals through money mules. The discovery, made by security researcher HaxRob, revealed the Linux variant’s ability to bypass security tools, as it was first submitted to VirusTotal in June 2023 with no detection. 

It operates by injecting a shared library into a running process on the payment switch server using the ‘ptrace’ system call. FASTCash’s history of ATM cash-out attacks dates back to 2016, with incidents stealing tens of millions of dollars across multiple countries. The U.S. Cyber Command in 2020 attributed these schemes to APT38, part of the Lazarus Group. North Korea’s involvement in global financial theft is well-documented, with the theft of over $1.3 billion linked to this malware and other campaigns. The Linux variant’s ability to evade standard defenses puts financial institutions at heightened risk. Its discovery emphasizes the evolving tactics of North Korean cyber actors, who are continually refining malware to expand their reach. 

HaxRob also noted a new Windows version of FASTCash, submitted in September 2024, demonstrating the ongoing development of this malware. To mitigate this growing threat, financial institutions must strengthen security around payment switch systems, implement real-time monitoring of unusual transaction patterns, and upgrade defenses to detect advanced attack techniques like FASTCash. 

As North Korean hackers continue to develop sophisticated malware variants, financial organizations must prioritize protecting against this persistent threat to prevent unauthorized cash withdrawals and financial losses.

How North Korea is Exploiting the Crypto Industry

How North Korea is Exploiting the Crypto Industry

North Korean operatives have penetrated the blockchain world, and the covert operation has significant implications for global cybersecurity and the integrity of the crypto market.

Recent warnings from U.S. authorities highlight that North Korean IT workers are infiltrating tech and crypto companies, channeling their earnings to support the state's nuclear weapons program. A 2024 UN report states these workers generate up to $600 million annually for Kim Jong Un's regime. 

Hiring these workers, even unintentionally, violates U.N. sanctions and is illegal in the U.S. and many other countries. It also poses a significant security risk, as North Korean hackers often use covert workers to target companies.

North Korea's Cyber Arsenal

North Korea's cyber operations are nothing new, but their infiltration into the crypto industry represents a new frontier. Using fake identities and fabricated work histories, North Korean IT workers managed to secure positions in over a dozen blockchain firms. These operatives, often disguised as freelancers from countries like South Korea, Japan, or China, have leveraged the decentralized nature of the crypto industry to mask their origins and intentions.

The Crypto Industry's Blind Spot

The crypto industry's decentralized and often anonymous nature makes it an attractive target for cybercriminals. The article reveals how North Korean operatives exploited this blind spot, slipping through the cracks of standard vetting procedures. They infiltrated companies by providing fake credentials and using VPNs to obfuscate their actual locations. This tactic allowed them to access sensitive information and potentially manipulate blockchain networks.

Economic Warfare

North Korea's entry into the crypto industry is part of a broader strategy to circumvent international sanctions. By infiltrating blockchain firms, North Korean operatives can siphon off funds, conduct illicit transactions, and launder money. The stolen assets are then funneled back to the regime, bolstering its finances and supporting its nuclear ambitions.

Consequences and Countermeasures

The infiltration severely affects the targeted firms, exposing them to legal risks and undermining their credibility. It also raises broader concerns about the security of the crypto industry. To combat this threat, companies must adopt more stringent vetting processes, enhance cybersecurity measures, and collaborate with international agencies to identify and neutralize such threats.

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 Attacking Crypto Industry, Billions at Risk

North Korean Hackers Attacking Crypto Industry, Billions at Risk

The United States Federal Bureau of Investigation (FBI) has recently highlighted a significant cybersecurity threat posed by North Korean cybercriminals targeting the web3 and cryptocurrency sectors. 

Why Hackers Target ETFs?

The cryptocurrency industry has witnessed tremendous growth, Ether and Bitcoin are game changers. The rise has led to financial instruments like ETFs (Exchange-traded funds) that allow investors access without owning them directly. But, with the increase of crypto technologies, security questions have also surfaced. 

The United States FBI recently warned about a major cybersecurity threat from North Korean hackers targeting cryptocurrency and web3 sectors. Billions of dollars go into these crypto ETFs, but investors shouldn’t be hasty to think their assets are secure. 

Lazarus Behind Attacks

Lazarus (a North Korean state-sponsored group) is no stranger to the cryptocurrency market and is allegedly responsible for various attacks against famous exchanges and blockchain protocols. Officials are concerned about hackers attacking crypto-backed ETFs by targeting the underlying assets. 

North Korean hackers are using advanced engineering methods to fool employees at decentralized finance (DeFi) and cryptocurrency firms. The hackers impersonate high-profile figures within an organization and or make specific scenarios based on the target’s position, business interests, or skills to get in their good books. 

“The actors may also impersonate recruiting firms or technology companies backed by professional websites designed to make the fake entities appear legitimate. Examples of fake North Korean websites can be found in affidavits to seize 17 North Korean domains, as announced by the Department of Justice in October 2023,” the FBI warned.

The FBI Warning

The FBI has warned against storing private cryptocurrency wallet data on web-connected devices as they may be victims of hacking attacks. If these requests come from unfamiliar sources, organizations should be careful when using non-standard software or applications on their network.

North Korean hackers have already stolen sensitive data from Bitcoin companies by using fake job ads. The FBI’s warning is a wake-up call for web3 and cryptocurrency firms to advance their cybersecurity systems and be careful against these rising attacks. 

“The actors usually attempt to initiate prolonged conversations with prospective victims to build rapport and deliver malware in situations that may appear natural and non-alerting. If successful in establishing bidirectional contact, the initial actor, or another member of the actor’s team, may spend considerable time engaging with the victim to increase the sense of legitimacy and engender familiarity and trust,” the FBI reports.

Hacker Who Took Down North Korea’s Internet Reveals Key Insight

 

Alejandro Caceres, known online as P4x, recently revealed himself as the hacker who managed to take down North Korea’s internet for over a week. This feat, conducted entirely from his home in Florida, has drawn significant attention, and Caceres recently took to Reddit to allow people to “ask him anything” about his experience hacking into one of the world’s most secretive and isolated nations. 

Caceres, a 38-year-old Colombian-American cybersecurity entrepreneur, was unmasked as the hacker behind this attack by Wired magazine. He explained that his actions were in retaliation after he was targeted by North Korean spies attempting to steal his hacking tools. In response, he decided to hit back by attacking North Korea’s internet infrastructure, a move that kept the country’s limited public websites offline for over a week. He told Wired, “It felt like the right thing to do here. If they don’t see we have teeth, it’s just going to keep coming.” In his Reddit thread, Caceres discussed the simplicity of his attack, saying, “Honestly, I’ve been asked this a lot. And I can’t really tell haha. I used to say nah it wasn’t that hard.” 

He later clarified, “People told me it wasn’t hard only because I’m trained in this.” Caceres took advantage of North Korea’s outdated and minimal internet infrastructure, which he described as “little sticks and glue.” He noted that North Korea has only two routers for internet ingress and egress, making it easier for a skilled hacker to disrupt the system. When asked about the possible consequences of his actions, Caceres admitted he had faced little to no backlash. “Everyone seems to sort of like it but cannot say that officially. Honestly, I expected a LOT more negativity just because that’s the natural order of things,” he remarked. 

The only attention he has received so far has been from intelligence agencies interested in learning how he managed the hack. He recounted how these meetings sometimes took place in basements, joking, “It was super X-Files type s**t but also like any normal meeting. Weird dissonance…” Reddit users also asked about the possible risks and repercussions of his actions. Caceres expressed surprise at not having faced any direct threats or legal actions. “I have not yet been murdered or arrested, so that’s pretty good,” he joked. 

As of now, Caceres has not faced any significant consequences beyond curiosity from intelligence agencies wanting to understand his methods. Caceres’s hack on North Korea serves as a reminder of how vulnerable even the most secretive and controlled nations can be to cyberattacks, especially when dealing with experienced hackers. While his actions have garnered admiration and a certain level of respect in online communities, they also raise questions about the potential consequences for international relations and cybersecurity norms. 

As the world increasingly relies on digital infrastructure, incidents like this highlight both the possibilities and the dangers of hacking in a hyperconnected world. Caceres, for his part, remains unrepentant and open about his motivations, positioning his actions as a form of digital self-defense and a warning against further provocations from hostile entities.

North Korea Exploited Windows Zero-Day Vulnerability to Install Fudmodule

 

North Korea's Lazarus hacking group has once again exploited a zero-day vulnerability in Microsoft Windows to deploy malware on targeted devices. On August 13, Microsoft addressed this issue with its monthly Patch Tuesday updates, fixing a flaw in the Windows Ancillary Function Driver (Afd.sys) for WinSock, identified as CVE-2024-38193. Security experts strongly recommend applying this update promptly, as Microsoft has confirmed that the vulnerability is actively being exploited.

The flaw allows attackers to escalate system privileges through a use-after-free memory management issue, potentially granting them elevated system access, according to Rapid7. The advisory underscores the urgency of this patch, highlighting the low complexity of attacks, lack of required user interaction, and minimal privileges needed for exploitation.

The warning proved accurate, as Avast researchers Luigino Camastra and Martin Milanek, who initially discovered and reported the flaw to Microsoft in June, revealed that Lazarus had been exploiting this vulnerability before the fix was issued. Their primary aim was to install a rootkit named Fudmodule on the affected systems, utilizing the zero-day vulnerability to remain undetected by security software.

Details on the specific organizations targeted and their industries have not been disclosed. However, Lazarus is known for its focus on stealing cryptocurrency to support North Korea’s financially strained regime. The regime also uses its hacking teams to gather intelligence on Western nuclear facilities and defense systems.

This incident is part of a broader pattern of North Korean hacking activities targeting Windows drivers. In February, Microsoft patched another vulnerability, CVE-2024-21338, which Lazarus had used to gain system-level access. This flaw was in the appid.sys AppLocker driver, crucial for controlling application execution on Windows systems. Avast had previously reported this vulnerability, which was actively being exploited by Lazarus to install Fudmodule. The updated version of Fudmodule included enhancements, such as disabling antivirus protections like Microsoft Defender and CrowdStrike Falcon.

The rise of "Bring Your Own Vulnerable Driver" (BYOVD) attacks, where attackers use legitimate but vulnerable drivers to bypass security measures, has been noted. Lazarus has employed this tactic since at least October 2021, using it to infiltrate systems by loading drivers with known vulnerabilities. Other groups have also utilized similar methods, such as Sophos reporting on RansomHub's use of outdated drivers to disable endpoint detection and response tools, and deploying ransomware.

Overall, as Lazarus and similar groups continue to adapt their strategies, the need for vigilance and timely updates is crucial to protect systems from these sophisticated attacks.

How North Korean Attackers Deployed Malware Via VPN Bug Exploit

How North Korean Attackers Deployed Malware Via VPN Bug Exploit

In a concerning event, North Korean state-sponsored have again displayed their advanced cyber capabilities by abusing flaws in VPN software updates to plant malware. The incident highlights the rising threats from state-sponsored actors in the cybersecurity sector. "The Information Community attributes these hacking activities to the Kimsuky and Andariel hacking organizations under the North Korean Reconnaissance General Bureau, noting the unprecedented nature of both organizations targeting the same sector simultaneously for specific policy objectives," NCSC said.

Attack Vector Details

The NCSC (National Cyber Security Center) recently detected two infamous North Korean hacking groups named Kimsuky (APT43) and Andariel (APT45) as the masterminds of these attacks. The groups have a past of attacking South Korean companies and have set their eyes on exploiting bugs in VPN software updates. Threat actors leveraged these flaws, gained access to networks, deployed malware, and stole sensitive data, including trade secrets.

How the attack works

The actors used a multi-dimensional approach to attack their targets. First, they identified and compromised vulnerabilities in the VPN software update mechanisms. Once the update started, the attackers secretly installed malware on the victim's system. The malware then set up a backdoor, letting the hackers build persistent access to the compromised network.

A key tactic used by attackers was to disguise the malware as a genuine software update. Not only did it help escape detection, but it also ensured that the dangerous malware was planted successfully. The malware was built to extract sensitive information, including intellectual property and secret business info that can be used for economic espionage purposes or can be sold on the dark web.

Learnings for the Cybersecurity Sector

The incident underscores important issues in cybersecurity, the main being the importance of strengthening software update mechanisms. Software updates are a routine part of keeping the system secure, and users trust them easily. This trust gives threat actors leverage and allows them to attack, as shown in this case.

The second issue, the attack highlights an urgent need for strong threat intelligence and monitoring. Organizations must stay on alert and constantly look out for signs of attacks. A sophisticated threat detection system and frequent security audits can help detect and mitigate possible threats before they can cause major damage.

Tips on Staying Safe

Here are some key strategies organizations can adopt for multi-layered security:

Regular patching and updates ensure all software like VPNs, are updated with the latest security patches, reducing the risk of flaws being abused.

Implementing a "Zero Trust Framework" which assumes internal and external threats, the model requires strict authorization for each user and device trying to access the network.

Using advanced endpoint protection solutions that can identify and respond to suspicious activities on individual systems.