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.
A Reuters investigation revealed that cryptocurrency exchange Coinbase knew in January about a breach affecting outsourced customer support agents in India. Six people who knew about the incident said Coinbase was aware of sensitive user data compromise through its contractor, TaskUs, before it was officially announced in May.
On 14th May, TaskUs filed an SEC document revealing that an India-based TaskUs employee was found taking pictures of a computer screen with her phone. Five former TaskUs employees confirmed that the worker and one accomplice were bribed by threat actors to get Coinbase user data.
After this information, more than 200 TaskUs employees were fired in a mass layoff from the Indore center, which drew media attention in India. Earlier, Coinbase suspected ‘overseas support agents’ but now the breach is estimated to cost 400 million dollars.
Coinbase had been a long-term partner of TaskUs, a Texas-based outsourcing firm, cost-cutting labor by giving customer support work to offshore teams. After 2017, TaskUs agents, mostly from developing countries, handled Coinbase customer inquiries.
In the May SEC filing, Coinbase said it didn’t know about the full scale of the breach until it received an extortion demand of $20 Million on 11th May. As a cautionary measure, Coinbase cut ties with TaskUs employees and other unknown foreign actors. Coinbase has notified regulators, compensated affected users, and taken strict measures to strengthen security.
In a public statement, TaskUs confirmed it had fired two staff (unnamed) for data theft but didn’t mention Coinbase. The company found the two staff involved in a cyber attack campaign that targeted other service providers linked to the client.
Hackers did not breach the Coinbase crypto wallets directly, they cleverly used the stolen information to impersonate the Coinbase employees in a series of social engineering scams. The hackers posed as support agents, fooling victims into transferring their crypto assets.
According to Money Control, “The person familiar with the matter confirmed that Coinbase was the client and that the incident took place in January. Reuters could not determine whether any arrests have been made. Police in Indore did not return a message seeking comment.”
The RIBridges system, a very important tool for Rhode Island's social services, has become the latest victim of a ransomware attack, resulting in the leak of personal data belonging to hundreds of thousands of residents. This breach, orchestrated by the Brain Cipher ransomware group, has raised serious concerns about the security of systems handling sensitive information.
What is RIBridges?
RIBridges is the vital system for Rhode Island that runs social support programs, such as access to health care, food assistance, childcare, and more. Much of the private data in this compromise was made vulnerable to exploitation.
Timeline of the Incident
1. First Warning: On December 5, Deloitte, the vendor responsible for RIBridges, warned Rhode Island officials that there may have been a security breach.
2. Confirmation of Breach: By December 10, it was confirmed that hackers had indeed accessed the system. The hackers even published screenshots of the stolen file directories on Deloitte's screen.
3. Action Taken: Confirmation of presence of harmful code led to system shut down to minimize damage, and this occurred on December 13.
What Data Was Leaked?
Last week, a group known as Brain Cipher began to leak their stolen files on the dark web. It claims to have included names, addresses, birth dates, Social Security numbers, and banking details of people. The list contained both adults and minors. Other reports also suggest that some file folders contained database backups and system archives.
Implications for Rhode Island Residents
This breach has potentially exposed around 650,000 individuals to identity theft and fraud. Governor Dan McKee has advised residents to take immediate steps to protect their data. This includes freezing credit reports, monitoring accounts for unusual activity, and staying cautious of phishing attempts that may exploit the stolen information.
The Brain Cipher ransomware group, operating since mid-2024, is known to use advanced encryption tools and a data leak website to extort victims. Its operations were first brought to public attention after attacking Indonesia's temporary National Data Center. In that attack, it used a modified version of a leaked codebase for an encryptor to breach RIBridges.
Although the data leak site from the gang remains inaccessible, reportedly as a result of a distributed denial-of-service attack, their negotiation page on Tor remains active. It appears they are still pushing the victims or perhaps even looking for further extortions.
What's Being Done?
The IT teams in state work to comprehend the full effect of the breach and to secure the system. Residents are advised to stay vigilant and to take proactive steps to prevent these risks caused by the leakage of such data. This attack calls out the increased risk of ransomware and an increased need for cybersecurity measures in securing crucial public systems and sensitive information on individuals.
Panaji: In a disturbing cybercrime case, the Goa Cyber Crime Police arrested a Bengaluru resident, Mohan Raj V, for allegedly cyberbullying and extorting a woman from Goa. The arrest was made on Saturday after a strategic operation by the police team.
The case began when the victim, a woman from Goa, filed a complaint with the cyber crime police. She reported that the accused had posted a fake job advertisement for a position at a foreign bank. Responding to the advertisement, the woman was contacted via a chatting app by the accused, who arranged an online interview. During the video call, individuals posing as company representatives coerced the woman into undressing. They recorded the video and took screenshots, which were later used to blackmail her.
According to the complaint, the accused demanded sexual favours in exchange for deleting the compromising material. Over the past two months, he persistently harassed the woman, threatening to make the videos and pictures public if she did not comply. He also demanded that she meet him in Bengaluru.
Following the complaint, the police, led by Superintendent of Police Rahul Gupta, devised a plan to apprehend the accused. A team, including the victim, travelled to Bengaluru and laid a trap. After extensive efforts and a lengthy chase, the accused was caught when he arrived to meet the victim. The police recovered the chats and videos from the accused's phone, which will be sent for a cyber forensic examination.
The investigation revealed that Mohan Raj V used VPN phone numbers to create fake Telegram accounts and post fraudulent job offers. He targeted women by promising high salary packages and conducting fake online interviews.
The accused has confessed to his crimes and has been booked under several sections of the Indian Penal Code, including section 354A (sexual harassment), section 384 (extortion), and relevant provisions of the Information Technology Act. The case is being further investigated by Police Inspector Deepak Pednekar.
SP Rahul Gupta urged the public to verify the authenticity of online job offers through local or cyber police stations before engaging with them. He also cautioned against complying with unethical online demands, no matter the promised benefits.
This case highlights the growing menace of cybercrime and the importance of vigilance in online interactions. The Goa Cyber Crime Police's successful operation furthers the cause for robust cyber security measures and public awareness to prevent such incidents.
In December, international law enforcement targeted a gang, leading to the seizure of various websites and digital decryption keys, as reported by Reuters. In response to this crackdown, the Blackcat hackers threatened to extort critical infrastructure providers and hospitals.
International law enforcement organizations have effectively dismantled the renowned Ragnar Locker ransomware gang, marking a huge win against cybercrime. This operation shows the value of international cooperation in the fight against digital criminal businesses and represents a turning point in the ongoing war against cyber threats.
The Ragnar Locker gang had been a formidable force in the realm of cyber extortion, targeting businesses worldwide with their sophisticated ransomware attacks. Their modus operandi involved encrypting sensitive data and demanding hefty ransoms for its release, often crippling the operations of affected organizations.
The takedown operation was a joint effort between various agencies, including the European Union Agency for Law Enforcement Cooperation (Europol), the Federal Bureau of Investigation (FBI), and the UK's National Crime Agency (NCA). It was a testament to the power of international cooperation in combating cybercrime.
Europol, in a statement, emphasized the significance of this operation, stating, "The arrest of the alleged leader and the seizure of the infrastructure used by the group to conduct its malicious activities is a clear signal that Europol and its partners are actively targeting ransomware groups, their infrastructure, and the financial proceeds they extract from their victims."
One of the key achievements of this operation was the seizure of the Ragnar Locker gang's dark web portal, where they conducted their extortion activities. This move has disrupted their ability to continue their illegal operations and sends a powerful message to other cybercriminals.
The impact of this takedown is expected to be far-reaching. With the dismantling of Ragnar Locker's infrastructure, countless potential victims have been spared from falling prey to their malicious activities. This operation serves as a stark reminder to cybercriminals that the global community is united in its determination to combat cyber threats.
However, it is crucial to remain vigilant in the face of evolving cyber threats. As the digital landscape continues to evolve, criminals may adapt their tactics. Organizations and individuals alike must prioritize cybersecurity measures, including robust antivirus software, regular backups, and employee training to recognize and respond to potential threats.
An important step forward in the battle against cybercrime was made with the successful operation against the Ragnar Locker ransomware organization. It demonstrates the value of global cooperation and makes it quite obvious that cybercriminals will be hunted down and made to answer for their deeds. While this win deserves praise, it also highlights the necessity of ongoing watchfulness and investment in cybersecurity measures to guard against potential attacks.
Ransomware's massive scale and growth got the attention of leaders in business and policy, however, we should note how the ransomware operators may adapt and evolve to secure their earnings.
Prior to the ransomware boom, threat actors tried various extortion techniques. These involved thefts and the sale of sensitive information like credit card numbers. Some focused on ACH transfers and direct financial transactions.
While others tried reselling system access for scrap value to other threat actors, or crypto mining, bringing the monetization issues downstream. The highest profit-bearing technique needed savvy operators and maintained, continuous access, meaning that getting caught could sabotage operations that required a considerable investment of time.
Ransomware revolutionized the extortion game. The brute extortion technique was easy to execute and effective.
Ransomware of the past didn't need to understand the victim network, didn't care for anti-forensics or much caution, and provided instant and direct payment without depending on black market resellers.
With the life cycle getting tight, more profits, and a significantly low barrier to entry, ransomware laid paths for new cybercrime explosion.
The future is sure to witness threat actors modify the ransomware playbook. We may notice groups build more advanced tradecraft to disrupt attribution, lowering the effect of sanction lists (imposed by governments, including payment bans).
Currently, we find ourselves in the initial stage of Ransomware 3.0 evolution, but we can expect more changes in the extortion models. Attackers may adopt traditional ransomware models, reselling stolen data along with/instead of extortion.
We are already aware that threat actors are experimenting with various cryptocurrency schemes.