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CYBER-CRIME

3


NORTH KOREA RUNNING MALWARE-LADEN GAMBLING WEBSITES AS-A-SERVICE

3


$5K A MONTH FOR THE SITE. $3K FOR TECH SUPPORT. INFECTION WITH MALWARE AND
FUNDING A DESPOT? PRICELESS

Laura Dobberstein
Thu 15 Feb 2024 // 04:30 UTC




North Korea's latest money-making venture is the production and sale of gambling
websites that come pre-infected with malware, according to South Korea's
National Intelligence Service (NIS).

The Service on Wednesday identified South Korean cyber crime organizations as
buyers of the sites.

Reports allege that the North Korean faction responsible for this effort is an
IT organization affiliated with the hermit kingdom's secretive Office 39 known
as "Gyeongheung."



Office 39 sits within the ruling Workers Party of Korea. It's believed by many –
including the US Department of Treasury – to be a revenue-generating machine of
the country, providing foreign currency and slush funds for the North Korea's
leaders through both legal and illegal activities.




Whoever runs the scam, the NIS believes they've made billions of dollars in
profit.

The websites are rented at around $5,000 a piece per month. For an extra $3,000
per month North Korea throws in tech support.



Local media report that an additional $2000 to $5000 might be granted if the
website can gather a significant volume of bank account details from the PayPal
accounts of Chinese nationals.

Furthermore, NIS reported that the websites it has investigated contained
malicious code in a feature that made automatic bets. The threat actors use the
code to steal the personal information of gamblers, and have attempted to sell
approximately 1,100 pieces of personal data pertaining to South Korean citizens.

 * Russia joins North Korea in sending state-sponsored cyber troops to pick on
   TeamCity users
 * Industry piles in on North Korea for sustained rampage on software supply
   chains
 * China's gambling crackdown spawned wave of illegal online casinos and
   crypto-crime in Asia
 * North Korea makes finding a gig even harder by attacking candidates and
   employers

To circumvent UN sanctions that prohibit hiring North Korean workers, the group
building the sites posed as Chinese IT workers. They forged Chinese
identification cards and stole relevant career credentials. To hide their
tracks, the gang remitted money using bank accounts established using Chinese
names and borrowed South Korean cyber gambling gang accounts.

Some clients, however, evidently didn't mind that the operatives were under
sanctions and knowingly maintained business with the North Koreans – lured by
low cost and the ease of using a common language, according to a media report
shared by NIS.

Gyeonghueng is based in the Sino-Korean border town Dandong, which is also a
hotspot for China's apparel industry since North Korean workers are willing to
work for low wages.



According to NIS, North Korean IT workers raising money illegally in the area
blend right in. ®

Get our Tech Resources

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Share


3 COMMENTS

MORE ABOUT

 * China
 * Gaming
 * Malware

More like these
×


MORE ABOUT

 * China
 * Gaming
 * Malware
 * North Korea


NARROWER TOPICS

 * Activision Blizzard
 * Advanced persistent threat
 * China Mobile
 * China telecom
 * China Unicom
 * Cyberspace Administration of China
 * Great Firewall
 * Hong Kong
 * JD.com
 * PlayStation 3
 * Remote Access Trojan
 * Semiconductor Manufacturing International Corporation
 * Shenzhen
 * Steam
 * Uyghur Muslims


BROADER TOPICS

 * APAC

TIP US OFF

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