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Exclusive: North Korea Does More Cyberspying Than You Think

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NORTH KOREA DOES MORE CYBERSPYING THAN YOU THINK


THE HERMIT KINGDOM DOESN’T JUST STEAL CRYPTOCASH; IT STEALS STATE
SECRETS—ESPECIALLY FROM NEIGHBORS.

By Rishi Iyengar


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A man watches a television showing a news broadcast with file footage of North
Korea's leader, Kim Jong Un, at the Seoul railway station in Seoul, South Korea.
A man watches a television showing a news broadcast with file footage of North
Korea's leader, Kim Jong Un, at the Seoul railway station in Seoul, South Korea,
on May 31. Jung Yeon-Je/AFP via Getty Images
June 23, 2023, 10:00 AM

A mention of North Korean hackers typically conjures images of either crippling
cyberattacks or, more often, massive cryptocurrency heists. But a new report on
the authoritarian state’s capabilities and tendencies paints a different
picture.

A mention of North Korean hackers typically conjures images of either crippling
cyberattacks or, more often, massive cryptocurrency heists. But a new report on
the authoritarian state’s capabilities and tendencies paints a different
picture.

The report, prepared by cyber-intelligence firm Recorded Future and shared
exclusively with Foreign Policy, labels espionage as the predominant motive of
North Korea’s cyberprogram. Recorded Future analyzed 273 cyberattacks over a
14-year period linked to North Korean state-sponsored groups and found that
information collection was the primary motivation for more than 70 percent of
them.

“The narrative seems to be that North Korea is a bunch of cybercriminals that
are backed by a state, but they’re just pulling off all of this financially
motivated cybercrime, and that is one aspect of their strategy,” said Mitch
Haszard, a senior threat intelligence analyst at Recorded Future and lead author
of the report.

“But what this report shows is that they’re still heavily focused on information
collection, or cyber-espionage, and they conduct more of those operations than
they do financially motivated or financial theft operations.”

Pyongyang predominantly seeks to use cyber-operations to either “gain insight
into how its adversaries think” or “access to information on technologies” that
will help it in a conflict with those adversaries, the report said. Government
entities are the most frequent targets, followed by cryptocurrency, media,
finance, defense, and nongovernmental organizations.




“North Korea’s leadership appears to be much more interested in learning about
what others think of them, gathering information that can help them develop
nuclear and ballistic missile technology, and stealing money to fund their
regime,” the report added.

However, North Korea’s obsession with cryptocurrency is unique, and the
country’s cyber-operations are one of its biggest avenues to prop up its nuclear
arsenal. Anne Neuberger, the White House’s cyber czar, said at an event in
Washington last month that half of the regime’s missile program is funded by
cryptocurrency and cyberheists.

“There aren’t really any other states or countries that are trying to steal
cryptocurrency, so North Korea is unique in that perspective, but they still do
a lot of things that other states do,” Haszard said.

The heists tend to make headlines, with North Korean hackers linked to thefts
worth billions of dollars from cryptocurrency exchanges around the world in
recent years, with two high-profile attacks on exchanges in Estonia and
California so far this year. Beyond crypto, North Korea has been linked to
larger and more disruptive global attacks, starting with the crippling of Sony
Pictures just under a decade ago that put its cybercapabilities on the map. That
was followed by a hack of Bangladesh’s central bank that compromised the global
financial transfer system known as Swift, and a crippling of the United
Kingdom’s National Health Service.

However, Haszard and his colleagues found that the vast majority of North
Korea’s cyberactivity goes after targets much closer to home. Nearly 80 percent
of the attacks for which geographic information is available took place in Asia,
according to the report. Most of that is in its immediate neighborhood: South
Korea accounted for just over 65 percent of the targets among the 29 countries
where attacks took place. The United States is a distant second, at 8.5 percent,
and no other country accounted for more than 3 percent of North Korean attacks.

Recorded Future found that Lazarus, the most notorious and high-profile hacking
group linked to the authoritarian regime, tends to go after more global targets
but is not the most common perpetrator of cyberattacks. That distinction belongs
to a group called Kimsuky, which mainly targets Asian government and civil
society entities and accounted for more than one-third of total attacks.
According to multiple U.S. law enforcement agencies, Kimsuky hackers pose as
South Korean journalists, exchanging emails with their targets on the pretext of
setting up interviews before sending them a link or document embedded with
malware. That malware, known as BabyShark, gives hackers access to the victims’
device and communications. “Kimsuky actors have also been known to configure a
victim’s email account to quietly auto-forward all emails to another
actor-controlled email,” a joint cybersecurity advisory by the FBI, National
Security Agency, and South Korean authorities earlier this month said.

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While Pyongyang has established its ability to disrupt critical infrastructure
in the West and conduct ransomware attacks, it is increasingly less likely to
conduct those types of attacks compared to other cyber-capable adversaries such
as Russia and China. It prefers to go smaller, faster, and more frequently,
deploying more basic techniques such as stealing passwords or phishing emails,
which infect systems with viruses by fooling users into clicking on dodgy links.

“The thing that I see in my tracking of North Korean threat actors is an
incredible amount of activity that is generally low-sophistication in nature,”
Haszard said, adding that that’s likely a matter of strategy rather than
ability. “They’re achieving a lot of success doing the kind of
lowest-common-denominator cyberattacks. So if it were me, why would I change?”




Rishi Iyengar is a reporter at Foreign Policy. Twitter: @Iyengarish


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From left to right: Chinese Vice Foreign Minister Ma Zhaoxu, Brazilian Foreign
Minister Mauro Vieira, South African Minister of International Relations and
Cooperation Naledi Pandor, Russian Foreign Minister Sergey Lavrov, and Indian
Foreign Minister Subrahmanyam Jaishankar pose for photos at the BRICS foreign
ministers meeting in Cape Town, South Africa, on June 1.


BRICS FACES A RECKONING

Enlargement would be a sign not of the group’s strength, but of China’s growing
influence.

Prime Minister of India Narendra Modi arrives to address the United Nations
General Assembly at UN headquarters on September 27, 2019 in New York City.


DON’T BELIEVE MODI'S ECONOMIC SUCCESS STORY

Contrary to reputation, India’s current government has made it worse off.

Sudanese soldiers riding on a truck are greeted by a crowd as they travel
through the Red Sea city of Port Sudan.


U.S. READIES NEW SANCTIONS ON WARRING SUDANESE FORCES

Some officials privately worry it’s too little, too late.

U.S. Secretary of State Antony Blinken greets then-U.S. Charge d’Affaires to
Belgium Nicholas Berliner.


SEASONED RUSSIA ENVOY JOINS BIDEN’S NSC

Nicholas Berliner, a veteran diplomat, has joined the White House to run Russia
policy.

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