Article Details
Scrape Timestamp (UTC): 2024-02-15 04:36:55.855
Source: https://www.theregister.com/2024/02/15/north_korea_turns_to_designing/
Original Article Text
Click to Toggle View
North Korea now running malware-laden gambling websites as-a-service. $5k a month for the site. $3k for tech support. Infection with malware and funding a despot? Priceless. North Korea’s latest money-making venture is the production and sale of gambling websites that come pre-infected with malware, according to South Korea’s National Intelligence Service (NIS). The Service on Wednesday identified buyers of the sites as South Korean cybercrime organizations. Reports allege that the North Korean faction responsible for this effort is an IT organization affiliated with the hermit kingdom’s secretive “Office 39”, aka “Gyeongheung”. Office 39 sits within the ruling Workers Party of Korea. It’s believed by many, including the US Department of Treasury, to be a revenue generating machine of the country, providing foreign currency and slush funds for the country’s leaders through both legal and illegal activities. Whoever ran the scam, the NIS believes they made billions of dollars in profit. The websites were rented at around $5,000 a piece per month. For an extra $3,000 per month North Korea threw in tech support. Local media reported that an additional $2000 to $5000 was granted if the website was able to gather a significant amount of bank account details from the PayPal accounts of Chinese nationals. Furthermore, NIS detailed that the websites contained malicious code in a feature that made automatic bets. The threat actors used the code to steal the personal information of gamblers and later attempted to sell approximately 1,100 pieces of personal data describing South Korean citizens. To circumvent UN sanctions that prohibit hiring North Korean workers, the group posed as Chinese IT workers. They forged Chinese identification cards and stole relevant career credentials. To hide their tracks, the gang remitted money using bank accounts established using Chinese names and borrowed South Korean cyber gambling gang accounts. Some clients, however, did not mind that the operatives were under sanctions and knowingly maintained business with the North Koreans, lured by low cost and the ease of using a common language, according to a media report shared by NIS. Gyeonghueng is the IT organization affiliated with Office 39. The group is based in Sino-Korean border town Dandong, a town near the Chinese border. Dandong is also a hotspot for China’s apparel industry, as North Korean workers are willing to work for low wages. NIS said North Korean IT workers raising money illegally in the area therefore blend right in.
Daily Brief Summary
North Korea is allegedly operating a revenue-generating scheme that involves selling gambling websites pre-loaded with malware.
The operation is linked to the North Korean IT organization Gyeongheung, associated with the secretive "Office 39" of the ruling Workers Party of Korea.
South Korean cybercriminal groups have reportedly purchased these websites, which cost around $5,000 monthly, with an additional $3,000 for technical support.
The malicious code embedded in the websites' automatic betting features is designed to steal personal information from gamblers for subsequent sale.
The cyber operation was profitable, potentially earning billions for its operators, while also offering tech support and bonuses for collecting banking details of Chinese nationals.
To avoid UN sanctions, the North Korean IT workers posed as Chinese, using forged IDs and stolen professional credentials, and they laundered money through Chinese-named bank accounts.
Some clients did business with the sanctioned North Korean operators, enticed by low costs and language commonalities.
This activity not only compromises cybersecurity but also functions as a financial resource for North Korea, circumventing international sanctions.