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Showing posts with label North Korean cyber attacks. Show all posts

North Korean Hacker Indicted for Cyber Attacks on U.S. Hospitals, NASA, and Military Bases

 

Federal prosecutors announced the indictment of Rim Jong Hyok, a North Korean military intelligence operative, for his role in a conspiracy to hack into American healthcare providers, NASA, U.S. military bases, and international entities. 

The indictment, unveiled on July 25, 2024, in Kansas City, Kansas, details Hyok’s involvement in stealing sensitive information and deploying ransomware to fund further cyberattacks. Rim Jong Hyok is accused of laundering money through a Chinese bank, using the proceeds to acquire computer servers and finance additional cyberattacks targeting defense, technology, and government entities globally. The indictment highlights his connection to the Andariel Unit of North Korea’s Reconnaissance General Bureau, a state-sponsored group responsible for these malicious activities. 

The cyberattacks on American hospitals and healthcare providers disrupted patient care, underscoring the severe impact of such crimes on public health. Prosecutors allege that Hyok targeted 17 entities across 11 U.S. states, including NASA and U.S. military bases. Defense and energy companies in China, Taiwan, and South Korea were also among the victims. Over three months, Hyok and his team infiltrated NASA’s computer systems, extracting over 17 gigabytes of unclassified data. They also accessed systems of defense companies in Michigan and California and breached Randolph Air Force Base in Texas and Robins Air Force Base in Georgia. 

The malware used by the Andariel Unit enabled them to transmit stolen information to North Korean military intelligence, aiding the country’s military and nuclear ambitions. The stolen data included details of fighter aircraft, missile defense systems, satellite communications, and radar systems, according to a senior FBI official. Stephen A. Cyrus, an FBI agent based in Kansas City, emphasized that North Korea uses cybercrimes to circumvent international sanctions and fund its political and military goals. The impact of these attacks is felt directly by citizens, as evidenced by the disruption of hospital operations in Kansas and other states. 

A reward of up to $10 million has been offered for information leading to his capture or that of other foreign operatives targeting U.S. infrastructure. The Justice Department has a history of prosecuting North Korean hackers. In 2021, three North Korean programmers were charged with a range of cybercrimes, including an attack on an American movie studio and the attempted theft and extortion of over $1.3 billion from banks and companies worldwide. The FBI’s involvement in this case began when a Kansas medical center reported a ransomware attack in May 2021. 

Hackers had encrypted the hospital’s files and servers, blocking access to patient records and critical equipment. A ransom note demanded Bitcoin payments, threatening to leak the files online if the demands were not met. Investigators traced the Bitcoin transactions to two Hong Kong residents, eventually converting the funds to Chinese currency and transferring them to a Chinese bank. The money was accessed from an ATM near the Sino-Korean Friendship Bridge. 

In 2022, the Justice Department announced the seizure of approximately $500,000 in ransom payments, including the entire ransom paid by the Kansas hospital. While Hyok’s arrest is unlikely, the indictment may lead to sanctions that could hinder North Korea’s ability to collect ransoms, potentially reducing the motivation for future attacks on critical infrastructure. 

Cybersecurity analyst Allan Liska from Recorded Future notes that although sanctions may not stop North Korea’s cyber activities entirely, they could deter attacks on hospitals by making ransom payments more difficult to collect. This incident also raises questions about China’s stance on being targeted by its ally, North Korea.

Cyber Attacks by North Korean Hackers on Cryptocurrency Platforms Reach $1 Billion in 2023

 

A recent study by Chainalysis, a blockchain analytics firm, has revealed a surge in cyber attacks on cryptocurrency platforms linked to North Korea. The data, covering the period from 2016 to 2023, indicates that 20 crypto platforms were targeted by North Korean hackers in 2023 alone, marking the highest level in the recorded period.

According to the report, North Korean hackers managed to steal just over $1 billion in crypto assets in the past year. While this amount is slightly less than the record $1.7 billion stolen in 2022, the increasing trend is a cause for concern among cybersecurity experts.

Chainalysis highlighted the growing threat from cyber-espionage groups like Kimsuky and Lazarus Group, employing various malicious tactics to accumulate significant amounts of crypto assets. This aligns with the Federal Bureau of Investigation's (FBI) previous attribution of a $100 million crypto heist on the Horizon Bridge in 2022 to North Korea-linked hackers.

Supporting these findings, TRM Labs, a blockchain intelligence firm, reported that North Korea-affiliated hackers stole at least $600 million in crypto assets in 2023. The frequency and success of these attacks underscore the sophistication and persistence of North Korea's cyber capabilities.

The report cited a notable incident in September, where the FBI confirmed that North Korea's Lazarus Group was responsible for stealing around $41 million in crypto assets from the online casino and betting platform Stake.com. Investigations led to the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioning Sinbad.io, a virtual currency mixer identified as a key money-laundering tool for Lazarus Group.

Global efforts to counter the threat include sanctions, particularly as previous research indicated that North Korea-affiliated hackers used stolen crypto funds to finance nuclear weapons programs. The UN has imposed sanctions to limit the regime's access to funding sources supporting its nuclear activities.

TRM Labs emphasized the need for ongoing vigilance and innovation from businesses and governments, stating, "With nearly $1.5 billion stolen in the past two years alone, North Korea’s hacking prowess demands continuous vigilance and innovation from business and governments."

Despite advancements in cybersecurity and increased international collaboration, the report predicts that 2024 is likely to see further disruptions from North Korea, posing a challenge for the global community to strengthen defenses against the relentless digital attacks. The report was released by CNBC.