Between Two Gregs: An Update on the North Korean Threat Landscape
Nov 20, 2024
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In this discussion, Greg Lesnewich, a Senior Threat Researcher at Proofpoint, and Greg Schloemer, a Senior Threat Intelligence Analyst at Microsoft, dive deep into North Korea's unique state-sponsored cyber activities. They explore the alarming use of stolen cryptocurrency to fund missile tests and the intense pressure operating on DPRK cyber actors. From unconventional tactics like personal identity targeting to the risks of hiring remote North Korean IT workers, their insights provide a chilling look into the geopolitical implications of this persistent threat.
North Korea employs unconventional cyber tactics, focusing on individual targets for cryptocurrency theft, blending effectiveness with flexibility in its operations.
The intricate network of North Korean operatives infiltrating Western companies highlights the need for comprehensive vetting to mitigate espionage risks.
Deep dives
Understanding the Unique Nature of North Korean Cyber Threats
North Korea is distinct in the realm of cyber espionage due to its unconventional approach and scrappy tactics. Unlike other nation-state actors that often adhere to predictable strategies, North Korean groups frequently prioritize innovative and less sophisticated methods that still yield successful outcomes. For example, they target individuals rather than enterprises, emphasizing personal identities in crimes like cryptocurrency theft, which allows for greater flexibility and lower barriers to entry. This adaptability challenges researchers to broaden their understanding of cyber threats, recognizing that effectiveness often guides their operations over traditional state-sponsored norms.
Diverse Revenue Generation Strategies in Cyber Operations
North Korean threat actors have demonstrated remarkable versatility in their operations, particularly in the realm of cryptocurrency. Two key groups, Sapphire and Jade Sleet, illustrate the range of tactics employed, from targeting individual traders to executing large-scale heists on exchanges. This dual approach underscores a broader strategy—while one faction navigates the personal Crypto space, the other focuses on high-stakes attacks, showcasing their ability to maximize revenue channels. Such agility ensures they stay relevant in an evolving digital landscape, often outmaneuvering traditional law enforcement and cybersecurity measures.
The Ecosystem of North Korean IT Workers
A significant challenge posed by North Korea lies in the infiltration of its IT workforce within Western companies, where employees effectively masquerade as legitimate workers while potentially facilitating espionage. The process involves an intricate network of handlers and facilitators that ensures these workers remain under the regime's influence while executing tasks abroad. These individuals often engage in benign roles, yet their presence raises substantial red flags regarding data exfiltration and insider threats. The complexity of this situation requires comprehensive vetting processes by employers to mitigate risks associated with such covert operations.
Evolving Training and Self-Sufficiency Among North Korean Hackers
North Korean cyber operatives appear to rely predominantly on self-generated training and in-house learning rather than external educational resources. They have evolved significantly over the years, integrating knowledge and experience from previous successful operations into their future endeavors. The COVID-19 pandemic may have further accelerated this development by necessitating alternative forms of training and collaboration among skilled hackers. This trend suggests that as the North Korean cyber landscape matures, its actors increasingly become self-sufficient in crafting sophisticated tools and techniques relevant to their strategic goals.
In this episode of the Microsoft Threat Intelligence Podcast host Sherrod DeGrippo is joined by Proofpoint’s Greg Lesnewich and Microsoft’s Greg Schloemer to share the unique threat posed by North Korea’s (DPRK) state-sponsored cyber activities. The Gregs discuss their years of experience tracking North Korean cyber actors and the distinct tactics that set DPRK apart from other nation-sponsored threats. The conversation also explores North Korea’s high stakes, as DPRK threat actors operate under intense pressure from government handlers, adding a layer of urgency and fear to their operations. They share insights into North Korea’s aggressive use of stolen cryptocurrency to fund the regime’s initiatives, like ballistic missile tests, and discuss the broader geopolitical impact.
In this episode you’ll learn:
The technical sophistication and the relentlessness of DPRK cyber tactics
Complex motives behind funding and sustaining the North Korean government
The training and skills development of North Korean cyber operators
Some questions we ask:
How do North Korean threat actors set up their relay networks differently?
What sets North Korea apart from other nation-sponsored threat actors?
How do North Korean cyber actors differ from traditional e-crime actors?