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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.

US Govt’s OFAC Sanctions North Korea-based Kimsuky Hacking Group


The Treasury Department’s Office of Foreign Assets Control (OFAC) has recently confirmed the involvement of Kimsuky, a North-Korea sponsored hacking group, in a cyber breach attempt that resulted in the compromise of intel in support of the country’s strategic aims. 

Eight North Korean agents have also been sanctioned by the agency for aiding in the evasion of sanctions and promoting their nation's WMD development.

The current measures are apparently a direct response to the Democratic People's Republic of Korea's (DPRK) purported launch of a military reconnaissance satellite on November 21 in an attempt to hinder the DPRK's ability to produce revenue, obtain resources, and obtain intelligence to further its WMD program.

"Active since 2012, Kimsuky is subordinate to the UN- and U.S. designated Reconnaissance General Bureau (RGB), the DPRK's primary foreign intelligence service," the Department of Treasury stated. "Malicious cyber activity associated with the Kimsuky advanced persistent threat is also known in the cybersecurity industry as APT43, Emerald Sleet, Velvet Chollima, TA406, and Black Banshee."

The OFAC, in August 2010, linked Kimsuky to North Korea's primary foreign intelligence agency, the Reconnaissance General Bureau. 

Kimsuky’s operations mostly consist of stealing intelligence, focusing on foreign policies and national security concerns regarding the Korean peninsula and nuclear policy. 

High-Profile Targets of Kimsuky

One of the most notable high-profile targets of the North Korea-based cyberespionage group includes the compromise of South Korea’s nuclear reactor operator in 2018, Operation STOLEN PENCIL against academic institutions in 2018, Operation Kabar Cobra against South Korean government organizations and defense-related agencies in 2019, and Operation Smoke Screen the same year.

Kimsuky was responsible for targeting at least 28 UN officials and several UN Security Council officials in their spear-phishing campaign conducted in August 2020. The cyberespionage group also infiltrated infiltrated South Korea's Atomic Energy Research Institute in June 2021. 

In September 2019, the US Treasury Department imposed sanctions on the North Korean hacker groups Lazarus, Bluenoroff, and Andariel for transferring money to the government of the nation through financial assets pilfered from global cyberattacks against targets.

In May, OFAC also declared sanctions against four North Korean companies engaged in cyberattacks and illegal IT worker schemes intended to raise money for the DPRK's weapons of mass destruction (WMD) programs.  

Kimsuky's Attacks Alerted German and South Korean Agencies

 


In a joint warning issued by the German and South Korean intelligence agencies, it has been noted that a North Korean hacker group named Kimsuky has been increasing cyber-attack tactics against the South Korean network. With sophisticated phishing campaigns and malware attacks, the group has been suspected of being behind the attacks. It is believed that the North Korean government is behind them. Cyberattacks continue to pose a major threat to businesses and governments throughout the world as a result of increasing cyberattacks. 

Kimsuky (aka Thallium and SmokeScreen) is a North Korean threat group that has developed a reputation for utilizing cutting-edge tools and tactics in its operations. There have been two upcoming attack tactics developed by the group that enhances the espionage capabilities of the organization. These tactics raise no red flags on security radars. There are several malicious Android apps and YouTube extensions being abused as well as Google Chrome extensions.   

Kimsuky is believed to have expanded its tactics to attack a wide range of organizations in both countries, according to the German Office for Information Security (BSI) and South Korea's National Intelligence Service (NIS). Initially targeting U.S. government agencies, research institutions, and think tanks, the group has now spread to businesses in the technology and defense sectors as well. 

Kimsuky appears to be using a new malware called "BookCove" to steal sensitive information from its targets, according to a statement issued by the company. A spear-phishing email is designed to appear like it has been sent from a reputable source, but in reality, the message contains malware. Upon clicking the link or attachment in an email that contains malware, the user's computer is infected with the malware. The hacker can have access to the victim's data and can monitor the activities of the victim as a result of this. \

Various South Korean and German agencies suggest that organizations should implement the necessary precautions to safeguard themselves against these threats. Security measures must be taken, such as multi-factor authentication and regular updates, and employees must be educated on the risks associated with phishing. 

North Korean hacking group, Kimsuky, has been operating since 2013, providing malware for PCs. Several sources claim that the group is linked to the Reconnaissance General Bureau of the North Korean government. This Bureau gathers intelligence and conducts covert operations on behalf of the government. 

According to research, the apps, which embed FastFire and FastViewer, are distributed through Google Play's "internal testing" feature. This gives third-party developers the ability to send apps to a "small set of trusted testers." 

Nevertheless, it bears mentioning that these internal app testing exercises cannot exceed 100 users per app, regardless of the number of users. This is regardless of when the app is released into production. There is no doubt that this campaign has a very targeted nature, which indicates its focus. 

Two malware-laced apps use Android's accessibility services to steal sensitive information ranging from financial to personal information. APK packages for each app are listed below with their respective names in APK format:

  • Com. viewer. fast secure (FastFi) 
  • Com.tf.thinkdroid.secviewer (FastViewer) 
Organizations can take the following measures to protect themselves against Kimsuky's attacks 

A multi-factor authentication system protects the network and system from unauthorized access since it requires the attacker to possess at least two factors, such as a password and a physical device, such as a mobile phone. 

Even if cyber criminals could get past some existing security measures, this would make it far harder for them to access private data. In addition to the above-mentioned measures, organizations may also wish to consider taking the following measures to protect themselves: 
  • Maintaining a regular software update schedule is important. 
  • The best practices for protecting your company's information are taught to your employees. 
  • It is essential to use tools and techniques to detect and respond to advanced threats. 
A robust incident response plan is a crucial tool for organizations to develop to be prepared in case of an incident. If cyberattacks occur, they should be able to respond rapidly and effectively to mitigate their impact.

A growing number of companies are attacked by state-sponsored groups like Kimsuky due to cyberattacks. To reduce their risk of falling victim to these sophisticated cyber-espionage tactics, businesses and governments in Germany need to take proactive steps to protect themselves, including improving their security systems. 

Operating silently, Kimsuky has continuously evolved its TTPs to keep up with changing threats, as well as developing efficient tactics. The majority of attacks are conducted using phishing or spear-phishing. The most significant priority that must be addressed against this threat is to protect the accounts of individuals or organizations and other critical assets. Those involved in organizations and individuals are advised to keep abreast of the latest tactics and adhere to relevant agencies' recommendations.

Hackers Use Malware To Spy on Emails


Gmail users should keep a watch out for the recently found email spying software called SHARPEXT. The malware was found by Volexity, a cybersecurity firm. The spying malware targets AOL and Google account holders and can read/download their personal e-mails and attachments.

A hacking group that is believed to work from North Korea is loading harmful browser extensions for Edge and Chrome. It tries to steal email info from open AOL and Gmail sessions and interchange browser preference files. 

About SHARPEXT

Volexity experts found the malicious extension, known as SHARPEXT, it is active for almost a year by Kimsuky (aka SharpTongue). It uses the extension after the attack has been launched, for keeping its presence. 

"SharpTongue's toolset is well documented in public sources; the most recent English-language post covering this toolset was published by Huntress in 2021. The list of tools and techniques described in that post is consistent with what Volexity has commonly seen for years. However, in September 2021, Volexity began observing an interesting, undocumented malware family used by SharpTongue," reports Volexity.

Kimsuky's Attack

Unlike other harmful browser extensions, SHARPEXT isn't made for stealing user credentials. On the contrary, the extension steals information from the e-mail inboxes of the victims.

The hackers deploy the extension manually via a VBS script once the initial breach of the victim system has been done. 

How SHARPEXT is installed

To install SHARPEXT, the hackers replace the Preferences and Secure Preferences files, for the aimed Chromium-based browser, which is generally said to be a difficult task to execute. 

• To interchange the Secure Preferences file, the hackers obtain some details from the browser and make a new file running on browser start-up.

• After that, the attackers use a secondary script to conceal some of the extension's features and any other windows that can surface and alarm the users about suspicious activities. 

• Lastly, the extension uses a pair of listeners for a particular type of activity in the browser tabs. Installation is then modified for different respective targets. 

Volexity says "the purpose of the tabs listeners is to change the window title of the active tab in order to add the keyword used by dev.ps1, the PowerShell script described previously. The code appends the keyword to the existing title (“05101190” or “Tab+”, depending on the version). The keyword is removed when DevTools is enabled on the tab."