American cybersecurity firm KnowBe4 recently discovered that a new hire, brought on as a Principal Software Engineer, was actually a North Korean state actor. This individual attempted to install data-stealing malware on the company's devices, but the threat was identified and neutralised before any data breach occurred.
This incident is the testament to the persistent threat from North Korean operatives posing as IT professionals, a danger that the FBI has been warning about since 2023. North Korea has a well-organised network of IT workers who disguise their true identities to secure employment with American companies. The revenue generated by these infiltrators funds the country's weapons programs, cyber operations, and intelligence gathering.
How the Hacker Bypassed Checks
Before hiring the malicious actor, KnowBe4 conducted extensive background checks, verified references, and held four video interviews. Despite these precautions, the individual used a stolen U.S. identity and AI tools to create a fake profile picture that matched during the video calls. This deception enabled the hacker to bypass the initial vetting process.
On July 15, 2024, KnowBe4's Endpoint Detection and Response (EDR) system flagged an attempt to load malware from the Mac workstation recently issued to the new hire. The malware, designed to steal information stored in web browsers, was intended to capture any leftover credentials or data from the computer's previous user.
When confronted by KnowBe4's IT staff, the state actor initially offered excuses but soon ceased all communication.
Deceptive Hiring Practices
KnowBe4 CEO Stu Sjouwerman explained that the scheme involved tricking the company into sending the workstation to an "IT mule laptop farm" near the address provided by the fraudster. The hacker then used a VPN to connect to the device during U.S. working hours, making it seem like they were working as usual.
To prevent similar incidents, KnowBe4 advises companies to use isolated sandboxes for new hires, keeping them away from critical network areas. Additionally, firms should ensure that new employees' external devices are not used remotely and treat any inconsistencies in shipping addresses as potential red flags.
This incident at KnowBe4 zeroes in on the intricate methods employed by North Korean hackers to infiltrate American companies. By staying vigilant and implementing robust security measures, firms can protect themselves from such threats.
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."
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.
Federal authorities in the United States have effectively confiscated the Sinbad crypto mixer, a tool purportedly used by North Korean hackers from the Lazarus organization, in a key action against cybercriminal activities. The operation, which focused on the Lazarus group's illegal financial operations, is an important development in the continuous international effort to tackle cyber threats.
The Lazarus organization, a state-sponsored hacker outfit renowned for coordinating high-profile cyberattacks, is connected to North Korea, which is how the Sinbad cryptocurrency mixer got its reputation. A crucial component of this operation was reportedly played by the U.S. Department of Treasury.
The WannaCry ransomware assault in 2017 and the notorious Sony Pictures hack from 2014 are only two of the cybercrimes the Lazarus organization has been connected to. These occurrences highlight the group's advanced capabilities and possible threat to international cybersecurity.
According to a study conducted by Elastic Security Labs, the malware, dubbed as ‘KandyKorn’ is a sophisticated backdoor that could be used to steal data, directory listing, file upload/download, secure deletion, process termination, and command execution.
At first, the attackers used Discord channels to propagate Python-based modules by pretending to be active members of the community.
Apparently, the social engineering attacks pose as an arbitrage bot intended to generate automatic profits by coercing its members into downloading a malicious ZIP archive called “Cross=platform Bridges.zip.” However, there are 13 malicious modules that are being imported by the file to work together in order to steal and alter the stolen information.
The report reads, “We observed the threat actor adopting a technique we have not previously seen them use to achieve persistence on macOS, known as execution flow hijacking.”
Users of Unibot were notified by blockchain analytics company Scopescan about an ongoing hack, which was subsequently verified by an official source:
“We experienced a token approval exploit from our new router and have paused our router to contain the issue.” Later, Unibot guaranteed that it would compensate all the victims who lost their funds in the exploit.
Lazarus Group/ Lazarus is a North Korean state-sponsored cyber threat group, linked to the Reconnaissance General Bureau that operates out of North Korea. As part of a campaign called Operation Blockbuster by Novetta, the group, which has been operating since at least 2009, is said to have been behind the devastating wiper attack against Sony Pictures Entertainment in November 2014. The malware that Lazarus Group uses is consistent with other known campaigns, such as DarkSeoul, Operation Flame, Operation 1Mission, Operation Troy, and Ten Days of Rain.
However, in certain definitions of the North Korean group, security researchers apparently report all North Korean state-sponsored cyber activities under the term Lazarus Group instead of tracking clusters or subgroups like Andariel, APT37, APT38, and Kimsuky.
The crypto industry remains a main target for Lazarus, with a primary motivation of profit rather than espionage, which is their second primary operational focus.
The fact that KandyKorn exists proves that macOS is well within Lazarus's target range and highlights the threat group's amazing ability to create subtle and sophisticated malware specifically designed for Apple devices.