American cybersecurity firm KnowBe4 recently discovered that a new hire, brought on as a Principal Software Engineer, was actually a North Korean state actor. This individual attempted to install data-stealing malware on the company's devices, but the threat was identified and neutralised before any data breach occurred.
This incident is the testament to the persistent threat from North Korean operatives posing as IT professionals, a danger that the FBI has been warning about since 2023. North Korea has a well-organised network of IT workers who disguise their true identities to secure employment with American companies. The revenue generated by these infiltrators funds the country's weapons programs, cyber operations, and intelligence gathering.
How the Hacker Bypassed Checks
Before hiring the malicious actor, KnowBe4 conducted extensive background checks, verified references, and held four video interviews. Despite these precautions, the individual used a stolen U.S. identity and AI tools to create a fake profile picture that matched during the video calls. This deception enabled the hacker to bypass the initial vetting process.
On July 15, 2024, KnowBe4's Endpoint Detection and Response (EDR) system flagged an attempt to load malware from the Mac workstation recently issued to the new hire. The malware, designed to steal information stored in web browsers, was intended to capture any leftover credentials or data from the computer's previous user.
When confronted by KnowBe4's IT staff, the state actor initially offered excuses but soon ceased all communication.
Deceptive Hiring Practices
KnowBe4 CEO Stu Sjouwerman explained that the scheme involved tricking the company into sending the workstation to an "IT mule laptop farm" near the address provided by the fraudster. The hacker then used a VPN to connect to the device during U.S. working hours, making it seem like they were working as usual.
To prevent similar incidents, KnowBe4 advises companies to use isolated sandboxes for new hires, keeping them away from critical network areas. Additionally, firms should ensure that new employees' external devices are not used remotely and treat any inconsistencies in shipping addresses as potential red flags.
This incident at KnowBe4 zeroes in on the intricate methods employed by North Korean hackers to infiltrate American companies. By staying vigilant and implementing robust security measures, firms can protect themselves from such threats.
According to the Seoul Metropolitan Police Agency, the hacker group utilized servers that they had rented from a domestic server rental company to hack into dozens of South Korean organizations, including defense companies. Also, the ransomware campaign acquired ransoms from a number of private sector victim firms.
Earlier this year, the law enforcement agency and the FBI jointly conducted an investigation to determine the scope of Andariel's hacking operations. This was prompted by reports from certain South Korean corporations regarding security problems that were believed to be the result of "a decline in corporate trust."
In an investigation regarding the origin of Andariel, it was found that it is a subgroup of the Lazarus Group. The group has stolen up to 1.2 terabytes of data from South Korean enterprises and demanded 470 million won ($357,000) in Bitcoin as ransom from three domestic and international organizations.
According to a study conducted by Mandiant, it was revealed that Andariel is operated by the North Korean intelligence organization Reconnaissance General Bureau, which gathers intelligence for the regime's advantage by mainly targeting international enterprises, governmental organizations, defense companies, and financial services infrastructure.
Apparently, the ransomware group is also involved in cybercrime activities to raise funds for conducting its operation, using specially designed tools like the Maui ransomware and DTrack malware to target global businesses. In February, South Korea imposed sanctions on Andariel and other hacking groups operating in North Korea for engaging in illicit cyber operations to fund the dictatorial regime's nuclear and missile development projects.
The threat actor has used a number of domestic and foreign crypto exchanges, like Bithumb and Binance, to launder the acquired ransom. Till now, a sum of 630,000 yuan ($89,000) has been transferred to China's K Bank in Liaoning Province. The hackers proceeded to redirect the laundered money from the K Bank branch to a location close to the North Korea-China border.
Seoul police noted that they have seized the domestic servers and virtual asset exchange used by Andariel to conduct their campaigns. Also, the owner of the account, that was used in transferring the ransom, has been detained.
"The Security Investigation Support Department of the Seoul Metropolitan Police Agency is actively conducting joint investigations with related agencies such as the U.S. FBI regarding the overseas attacks, victims and people involved in this incident, while continuing to investigate additional cases of damage and the possibility of similar hacking attempts," the agency said.
The police have warned businesses of the threat actor and have advised them to boost their cybersecurity and update security software to the latest versions. It has also been advised to organizations to encrypt any critical data, in order to mitigate any future attack.
Moreover, police are planning to investigate server rental companies to verify their subscribers’ identities and to ensure that the servers have not been used in any cybercrime activity.