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Amid Federal Crackdown, Microsoft Warns Against Rising North Korean Jobs Scams

Amid Federal Crackdown, Microsoft Warns Against Rising North Korean Jobs Scams

North Korean hackers are infiltrating high-profile US-based tech firms through scams. Recently, they have even advanced their tactics, according to the experts. In a recent investigation by Microsoft, the company has requested its peers to enforce stronger pre-employment verification measures and make policies to stop unauthorized IT management tools. 

Further investigation by the US government revealed that these actors were working to steal money for the North Korean government and use the funds to run its government operations and its weapons program.  

US imposes sanctions against North Korea

The US has imposed strict sanctions on North Korea, which restrict US companies from hiring North Korean nationals. It has led to threat actors making fake identities and using all kinds of tricks (such as VPNs) to obscure their real identities and locations. This is being done to avoid getting caught and get easily hired. 

Recently, the threat actors have started using spoof tactics such as voice-changing tools and AI-generated documents to appear credible. In one incident, the scammers somehow used an individual residing in New Jersey, who set up shell companies to fool victims into believing they were paying a legitimate local business. The same individual also helped overseas partners to get recruited. 

DoJ arrests accused

The clever campaign has now come to an end, as the US Department of Justice (DoJ) arrested and charged a US national called Zhenxing “Danny” Wanf with operating a “year-long” scam. The scheme earned over $5 million. The agency also arrested eight more people - six Chinese and two Taiwanese nationals. The arrested individuals are charged with money laundering, identity theft, hacking, sanctions violations, and conspiring to commit wire fraud.

In addition to getting paid in these jobs, which Microsoft says is a hefty payment, these individuals also get access to private organization data. They exploit this access by stealing sensitive information and blackmailing the company.

Lazarus group behind such scams

One of the largest and most infamous hacking gangs worldwide is the North Korean state-sponsored group, Lazarus. According to experts, the gang extorted billions of dollars from the Korean government through similar scams. The entire campaign is popular as “Operation DreamJob”. 

"To disrupt this activity and protect our customers, we’ve suspended 3,000 known Microsoft consumer accounts (Outlook/Hotmail) created by North Korean IT workers," said Microsoft.

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

ByBit Crypto Heist: First Half of 2025 Records All-time High Crypto Theft

2025 H1 records all-time crypto theft

In the first half of 2025, hackers stole a record $2.1 billion in cryptocurrency, marking an all-time high. The data highlights the vulnerable state of the cryptocurrency industry. North Korean state-sponsored hackers accounted for 70% of the losses, responsible for USD 1.6 billion, rising as the most notorious nation-state actor in the crypto space, according to a report by TRM Labs

This indicates a significant increase in illegal operations, surpassing the 2022 H1 record by 10% and nearly matching the total amount stolen for the entire 2022 year, highlighting the danger to digital assets. 

Implications of nation-state actors in crypto attacks

The biggest cryptocurrency attack has redefined the H1 2025 narrative, the attack on Dubai-based crypto exchange Bybit. TRM believes the attack highlights a rising effort by the Democratic People’s Republic of Korea (DPRK) for cryptocurrency profits that can help them escape sanctions and fund strategic aims like nuclear weapons programs, besides being a crucial component of their statecraft. 

“Although North Korea remains the dominant force in this arena, incidents such as reportedly Israel-linked group Gonjeshke Darande (also known as Predatory Sparrow) hacking Iran’s largest crypto exchange, Nobitex, on June 18, 2025, for over USD 90 million, suggest other state actors may increasingly leverage crypto hacks for geopolitical ends,” TRM said in a blog post. 

Mode of operation

"Infrastructure attacks — such as private key and seed phrase thefts, and front-end compromises — accounted for over 80% of stolen funds in H1 2025 and were, on average, ten times larger than other attack types," reports TRM. These attacks target the technical spine of the digital asset system to get illicit access, reroute assets, and mislead users. Infrastructure attacks are done via social engineering or insider access and expose fractures in the cryptosecurity foundation.

Takeaways 

H1 2025 has shown a shift towards crypto hacking, attacks from state-sponsored hackers, and geopolitically motivated groups are rising. Large-scale breaches related to nation-state attacks have trespassed traditional cybersecurity. The industry must adopt advanced, effective measures to prevent such breaches. Global collaboration through information sharing and teamed efforts can help in the prosecution of such cyber criminals. 

North Korea-Linked Hackers Behind $2.1 Billion in Crypto Theft in Early 2025

 

A new report from blockchain analytics firm TRM Labs reveals that hackers stole an unprecedented $2.1 billion in cryptocurrency during the first half of 2025—marking the highest amount ever recorded for a six-month period. A staggering 70% of the total, or around $1.6 billion, has been attributed to cybercriminal groups sponsored by North Korea. 

According to TRM Labs’ “H1 2025 Crypto Hacks and Exploits” report, this figure surpasses the previous record set in 2022 by 10%, pointing to an escalating trend in high-stakes cybercrime. The report also emphasizes how North Korea has solidified its role as the leading state-backed threat actor in the cryptocurrency ecosystem.  

“These thefts are not just criminal—they’re tools of statecraft,” the report states, highlighting how stolen crypto plays a strategic role in funding the sanctioned regime’s national objectives, including its controversial weapons program. 

Much of this year’s unprecedented losses stem from a single massive incident: the $1.5 billion hack targeting Ethereum and related assets held by the crypto exchange Bybit in February. This attack is being considered the largest theft in the history of the cryptocurrency sector.  

Safe, a provider of multi-signature wallet solutions, traced the breach back to a compromised laptop belonging to one of its senior developers. The device was reportedly infected on February 4 after interacting with a malicious Docker project. The infiltration ultimately allowed attackers to gain unauthorized access to private keys.  

Both U.S. law enforcement and TRM Labs have linked the Bybit attack to North Korean hackers, aligning with prior assessments that the regime increasingly relies on crypto theft as a state-funded operation. 

This event drastically skewed the average size of crypto heists for 2025 and emphasized the changing nature of these attacks—from purely profit-driven motives to broader geopolitical strategies. 

TRM Labs noted that 80% of all crypto losses in 2025 were due to infrastructure breaches, with attackers exploiting vulnerabilities in systems that store private keys and seed phrases—essential components in controlling digital wallets. 

Analysts warn that such incidents signal a shift in the threat landscape. “Crypto hacking is becoming less about financial gain and more about political symbolism or strategic advantage,” TRM concluded. 

As the year continues, security experts urge crypto platforms and users to enhance infrastructure protection, especially against sophisticated, nation-backed threats that blur the line between cybercrime and cyberwarfare.

North Korean Hackers Target Fintech and Gaming Firms with Fake Zoom Apps

 

A newly uncovered cyber campaign is targeting organizations across North America, Europe, and the Asia-Pacific by exploiting fake Zoom applications. Cybersecurity experts have traced the operation to BlueNoroff, a notorious North Korean state-backed hacking group affiliated with the Lazarus Group. The campaign’s primary focus is on the gaming, entertainment, and fintech sectors, aiming to infiltrate systems and steal cryptocurrency and other sensitive financial data. 

Attack strategy 

The attack begins with a seemingly innocuous AppleScript disguised as a routine maintenance operation for Zoom’s software development kit (SDK). However, hidden within the script—buried beneath roughly 10,000 blank lines—are malicious commands that quietly download malware from a counterfeit domain, zoom-tech[.]us. 

Once the malware is downloaded, it integrates itself into the system through LaunchDaemon, granting it persistent and privileged access at every system startup. This allows the malware to operate covertly without raising immediate alarms. The malicious software doesn’t stop there. It fetches additional payloads from compromised infrastructure, presenting them as legitimate macOS components like “icloud_helper” and “Wi-Fi Updater.” 

These files are designed with anti-forensics techniques to erase temporary files and conceal their activity, all while maintaining a hidden backdoor for remote control and data exfiltration. This deceptive approach is particularly dangerous in remote work environments, where minor software issues are often resolved without deep inspection—making it easier for such malware to slip past unnoticed. 

Motives behind the attack

BlueNoroff’s intent appears financially driven. The malware specifically searches for cryptocurrency wallet extensions, browser-stored login credentials, and authentication keys. In one known incident dated May 28, a Canadian online gambling platform fell victim to this scheme after its systems were compromised via a fraudulent Zoom troubleshooting script. 

Protection Measures for Organizations Given the growing sophistication of such campaigns, security experts recommend several protective steps: 

• Independently verify Zoom participants to ensure authenticity. 

• Block suspicious domains like zoom-tech[.]us at the firewall level. 

• Deploy comprehensive endpoint protection that can detect hidden scripts and unauthorized daemons. 

• Invest in reliable antivirus and ransomware protection, especially for firms with cryptocurrency exposure. 

• Use identity theft monitoring services to detect compromised credentials early. 

• Train employees to recognize and respond to social engineering attempts. 

• Secure digital assets with hardware wallets instead of relying on software-based solutions alone.

US Seizes $7.7 Million From Crypto Linked to North Korea's IT Worker Scam


The US Department of Justice has filed a civil forfeiture complaint against North Korean IT workers for illegally gaining employment with US businesses, and earning millions for the Korean government, which amounts to violations of sanctions.

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.

North Korea’s Global Cybercrime Network Uncovered: Fake IT Workers Funding Regime's Ambitions

 

A new report by cybersecurity firm DTEX has exposed how North Korea is operating a sophisticated international cybercrime network by embedding fake information technology workers within leading global corporations. These operatives, disguised as freelance developers, are channeling millions in stolen cryptocurrency to fund the reclusive nation’s military and weapons programs.

According to the report, North Korean agents are not driven by ideology but by a systemic need to survive. Trained from a young age, many are groomed to become covert cyber operatives or IT contractors. Two individuals, using the aliases “Naoki Murano” and “Jenson Collins,” were found residing in Russia and are believed to be involved in infiltrating Western companies. They’ve been linked to a $6 million cryptocurrency theft.

The regime operates through shadowy IT entities like Chinyong, which positions agents in countries like China, Laos, and Russia. These agents gain trust within blockchain and cryptocurrency projects, ultimately diverting digital assets back to Pyongyang. Since 2017, North Korea has reportedly funneled tens of millions of dollars through such schemes—prompting U.S. sanctions for financing weapons development (see: US Sanctions North Korean Entities for Sending Regime Funds).

The report states that North Korea’s cyber program has reached a pivotal stage, with its tactics becoming more aggressive and unpredictable. The regime now deploys techniques ranging from supply chain attacks to financial sector infiltration and even online propaganda. DTEX researchers noted that these operatives are so deeply integrated into major cryptocurrency and Web3 initiatives that, “it would seem that every other Web3 project has a North Korean on the payroll.”

“The threat of unintentionally hiring North Korean IT workers is larger than most people realize,” Kevin Mandia, founder and former CEO of Mandiant, said in a statement accompanying the report. “It's cover is global and active right now - which is why the industry and government need to work together to come up with solutions to counter the threat.”

The study also challenges the notion that North Korean cyber operatives follow rigid roles. Instead, many shift between missions, take on leadership responsibilities, and reuse false identities—suggesting a highly adaptive and fluid structure.

Past investigations have revealed that North Korean attacks on European tech firms were often facilitated by individuals operating from the U.S. and the U.K. An April report by Mandiant warned of increasing attempts by North Korean IT workers to secure positions in defense and government agencies, with U.S. businesses being their primary focus—even as operations grow across Europe (see: North Korean IT Scammers Targeting European Companies).

Michael Barnhart, the lead analyst behind the DTEX report, said his research is based on open-source intelligence, testimonies from defectors, blockchain forensics, and insights from Web3 infrastructure. He also leveraged proprietary datasets from unnamed partners to trace how North Korean agents shift money, access, and identities across borders.

“DPRK operatives are persistent,” Barnhart wrote, adding that North Korean cyber agents “do not take kindly to scrutiny” and “will try to uncover who is studying them and how.”

North Korea Establishes Research Center 227 to Strengthen Cyber Warfare Capabilities

 

North Korea has reportedly launched a new cyber research unit, Research Center 227, as part of its efforts to enhance hacking capabilities and intelligence operations. According to Daily NK, this center is expected to function continuously, providing real-time support to North Korean intelligence agencies by developing advanced cyber tools. 

The initiative highlights North Korea’s increasing reliance on cyber warfare as a key component of its broader security strategy. In February 2025, North Korean leadership directed the Reconnaissance General Bureau (RGB) under the General Staff Department to strengthen the nation’s offensive cyber capabilities. As part of this directive, Research Center 227 was formed to focus on the development of sophisticated hacking techniques and cyber warfare tools. 

These efforts are primarily aimed at infiltrating foreign cybersecurity systems, disrupting critical infrastructure, and stealing sensitive data from targeted nations. The research facility will recruit approximately 90 highly skilled professionals, including graduates from top universities and individuals with advanced degrees in computer science. Unlike frontline cyber operatives who execute attacks, these researchers will focus on creating and refining malware, intrusion methods, and other offensive cyber tools. 

By centralizing its cyber research efforts, North Korea aims to develop more sophisticated digital weapons that can be deployed by operational hacking units in intelligence and espionage missions. North Korea has significantly expanded its cyber operations in recent years, with its state-sponsored hacking groups, such as Lazarus, launching large-scale attacks across the globe. These groups have been responsible for financial cybercrimes, espionage, and the theft of cryptocurrency, targeting both private companies and government agencies. 

Their activities have included spreading malware, infiltrating secure networks, and deploying information-stealing tools to compromise Western organizations. One particularly deceptive tactic used by North Korean hackers is the “Contagious Interview” campaign, in which cybercriminals pose as recruiters or hiring managers to manipulate professionals into downloading malicious software disguised as video conferencing applications. 

This technique has allowed hackers to gain access to corporate systems and steal valuable credentials. Additionally, there have been numerous cases of North Korean operatives using false identities to secure employment in global technology firms, potentially accessing critical software infrastructure or engaging in fraudulent activities. With the establishment of Research Center 227, North Korea is likely to intensify its cyber warfare operations, making its hacking activities more strategic and efficient. 

The development of custom malware, sophisticated intrusion techniques, and advanced cyber espionage methods could further increase the scale and complexity of North Korean cyberattacks. As these threats evolve, governments and cybersecurity professionals worldwide will need to bolster their defenses against the growing risks posed by North Korea’s cyber capabilities.

North Korean Hackers Exploit ZIP Files in Sophisticated Cyber Attacks

 

State-sponsored hacking group APT37 (ScarCruft) is deploying advanced cyber-espionage tactics to infiltrate systems using malicious ZIP files containing LNK shortcuts. These files are typically disguised as documents related to North Korean affairs or trade agreements and are spread through phishing emails.

Once opened, the attack unfolds in multiple stages, leveraging PowerShell scripts and batch files to install the RokRat remote access Trojan (RAT) as the final payload.

The infection starts with carefully crafted phishing emails, often using real information from legitimate websites to enhance credibility. These emails contain malicious ZIP attachments housing LNK files. When executed, the LNK file verifies its directory path, relocating itself to %temp% if necessary.

It then extracts multiple components, including:

-A decoy HWPX document
-A batch script (shark.bat)

Additional payloads like caption.dat and elephant.dat
The shark.bat script executes PowerShell commands discreetly, launching the elephant.dat script, which decrypts caption.dat using an XOR key. The decrypted content is then executed in memory, ultimately deploying RokRat RAT.

Once active, RokRat collects detailed system information, such as:
  • Operating system version
  • Computer name
  • Logged-in user details
  • Running processes
  • Screenshots of the infected system
The stolen data is then exfiltrated to command-and-control (C2) servers via legitimate cloud services like pCloud, Yandex, and Dropbox, utilizing their APIs to send, download, and delete files while embedding OAuth tokens for stealthy communication.

RokRat also allows attackers to execute remote commands, conduct system reconnaissance, and terminate processes. To avoid detection, it implements anti-analysis techniques, including:
  • Detecting virtual environments via VMware Tools
  • Sandbox detection by creating and deleting temporary files
  • Debugger detection using IsDebuggerPresent
The malware ensures secure communication by encrypting data using XOR and RSA encryption, while C2 commands are received in AES-CBC encrypted form, decrypted locally, and executed on the compromised system. These commands facilitate data collection, file deletion, and malware termination.

By leveraging legitimate cloud services, RokRat seamlessly blends into normal network traffic, making detection more challenging.

“This sophisticated approach highlights the evolving tactics of APT37, as they continue to adapt and expand their operations beyond traditional targets, now focusing on both Windows and Android platforms through phishing campaigns.”

As APT37 refines its cyberattack strategies, organizations must remain vigilant against such persistent threats and enhance their cybersecurity defenses.