The Cybersecurity and Infrastructure Security Agency (CISA) issued an alert to the international community, network defenders and the public of the North Korean cyber threat. The advisory highlights the cyber threat posed by North Korea – formally known as the Democratic People’s Republic of Korea (DPRK) – and provides recommended steps to mitigate the threat. In particular, Annex 1 lists U.S. government resources related to DPRK cyber threats and Annex 2 includes a link to the UN 1718 Sanctions Committee (DPRK) Panel of Experts reports.
The DPRK’s malicious cyber activities threaten the United States and the broader international community and, in particular, pose a significant threat to the integrity and stability of the international financial system, says CISA, as the DPRK has increasingly relied on illicit activities – including cybercrime, which the US government refers to as HIDDEN COBRA – to generate revenue for its weapons of mass destruction and ballistic missile programs.
According to CISA, the DPRK has the capability to conduct disruptive or destructive cyber activities affecting U.S. critical infrastructure, and they use cyber capabilities to steal from financial institutions, and "has demonstrated a pattern of disruptive and harmful cyber activity that is wholly inconsistent with the growing international consensus on what constitutes responsible State behavior in cyberspace."
In December 2017, Australia, Canada, New Zealand, the United States, and the United Kingdom publicly attributed the WannaCry 2.0 ransomware attack to the DPRK and denounced the DPRK’s harmful and irresponsible cyber activity, adds CISA. Denmark and Japan issued supporting statements for the joint denunciation of the destructive WannaCry 2.0 ransomware attack, which affected hundreds of thousands of computers around the world in May 2017, as well.
It is vital for the international community, network defenders, and the public to stay vigilant and to work together to mitigate the cyber threat posed by North Korea, CISA warns.
Cyber Operations Publicly Attributed to DPRK by U.S. Government
To date, the U.S. government has publicly attributed the following cyber incidents to DPRK state-sponsored cyber actors and co-conspirators:
- Sony Pictures. In November 2014, DPRK state-sponsored cyber actors allegedly launched a cyber attack on Sony Pictures Entertainment (SPE) in retaliation for the 2014 film “The Interview.” DPRK cyber actors hacked into SPE’s network to steal confidential data, threatened SPE executives and employees, and damaged thousands of computers.
- Bangladesh Bank Heist. In February 2016, DPRK state-sponsored cyber actors allegedly attempted to steal at least $1 billion from financial institutions across the world and allegedly stole $81 million from the Bangladesh Bank through unauthorized transactions on the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.
- WannaCry 2.0. DPRK state-sponsored cyber actors developed the ransomware known as WannaCry 2.0, as well as two prior versions of the ransomware. In May 2017, WannaCry 2.0 ransomware infected hundreds of thousands of computers in hospitals, schools, businesses, and homes in over 150 countries. WannaCry 2.0 ransomware encrypts an infected computer’s data and allows the cyber actors to demand ransom payments in the Bitcoin digital currency. The Department of the Treasury designated one North Korean computer programmer for his part in the WannaCry 2.0 conspiracy, as well as his role in the Sony Pictures cyber attack and Bangladesh Bank heist, and additionally designated the organization he worked for.
- FASTCash Campaign. Since late 2016, DPRK state-sponsored cyber actors have employed a fraudulent ATM cash withdrawal scheme known as “FASTCash” to steal tens of millions of dollars from ATMs in Asia and Africa. FASTCash schemes remotely compromise payment switch application servers within banks to facilitate fraudulent transactions. In one incident in 2017, DPRK cyber actors enabled the withdrawal of cash simultaneously from ATMs located in more than 30 different countries. In another incident in 2018, DPRK cyber actors enabled cash to be simultaneously withdrawn from ATMs in 23 different countries.
- Digital Currency Exchange Hack. As detailed in allegations set forth in a Department of Justice complaint for forfeiture in rem, in April 2018, DPRK state-sponsored cyber actors hacked into a digital currency exchange and stole nearly $250 million worth of digital currency.
Measures to Counter the DPRK Cyber Threat
CISA strongly urge governments, industry, civil society, and individuals to take all relevant actions below to protect themselves from and counter the DPRK cyber threat:
- Raise Awareness of the DPRK Cyber Threat. Highlighting the gravity, scope, and variety of malicious cyber activities carried out by the DPRK will raise general awareness across the public and private sectors of the threat and promote adoption and implementation of appropriate preventive and risk mitigation measures.
- Share Technical Information of the DPRK Cyber Threat. Information sharing at both the national and international levels to detect and defend against the DPRK cyber threat will enable enhanced cybersecurity of networks and systems. Best practices should be shared with governments and the private sector. Under the provisions of the Cybersecurity Information Sharing Act of 2015 (6 U.S.C. §§ 1501–1510), non-federal entities may share cyber threat indicators and defensive measures related to HIDDEN COBRA with federal and non-federal entities.
- Implement and Promote Cybersecurity Best Practices. Adopting measures – both technical and behavioral – to enhance cybersecurity will make U.S. and global cyber infrastructure more secure and resilient. Financial institutions, including money services businesses, should take independent steps to protect against malicious DPRK cyber activities. Such steps may include, but are not limited to, sharing threat information through government and/or industry channels, segmenting networks to minimize risks, maintaining regular backup copies of data, undertaking awareness training on common social engineering tactics, implementing policies governing information sharing and network access, and developing cyber incident response plans. The Department of Energy’s Cybersecurity Capability Maturity Model and the National Institute of Standards and Technology’s Cybersecurity Framework provide guidance on developing and implementing robust cybersecurity practices. As shown in Annex I, the Cybersecurity and Infrastructure Security Agency (CISA) provides extensive resources, including technical alerts and malware analysis reports, to enable network defenders to identify and reduce exposure to malicious cyber activities.
- Notify Law Enforcement. If an organization suspects that it has been the victim of malicious cyber activity, emanating from the DPRK or otherwise, it is critical to notify law enforcement in a timely fashion. This not only can expedite the investigation, but also, in the event of a financial crime, can increase the chances of recovering any stolen assets.
- Strengthen Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT) / Counter-Proliferation Financing (CPF) Compliance. Countries should swiftly and effectively implement the Financial Action Task Force (FATF) standards on AML/CFT/CPF. This includes ensuring financial institutions and other covered entities employ risk mitigation measures in line with the FATF standards and FATF public statements and guidance.