North Korean Operative Indicted for Hacking Hospitals and International Entities

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ICARO Media Group
Politics
25/07/2024 19h58

In a major cybercrime operation, an operative from North Korea's military intelligence agency has been indicted for a conspiracy to hack into American health care providers, NASA, U.S. military bases, and other international entities. The indictment, announced by federal prosecutors in Kansas City, Kansas, accuses Rim Jong Hyok of stealing sensitive information, installing ransomware, and using the proceeds to fund additional cyberattacks.

The indictment alleges that Hyok laundered the stolen money through a Chinese bank, which he then used to purchase computer servers and finance cyberattacks on defense, technology, and government entities worldwide. The targets of these attacks included 17 entities across 11 U.S. states, such as NASA, U.S. military bases, defense and energy companies in China, Taiwan, and South Korea.

One of the most disturbing aspects of the cyberattacks was the disruption caused to American hospitals and health care providers. The hacks interfered with the treatment of patients, creating chaos and potential risks to their well-being. Additionally, Hyok and members of the Andariel Unit, a state-sponsored hacking group within North Korea's Reconnaissance General Bureau, gained unauthorized access to NASA's computer system, extracting over 17 gigabytes of unclassified data. They also infiltrated computer systems of defense companies in Michigan and California, as well as Randolph Air Force Base in Texas and Robins Air Force Base in Georgia.

The malware used by the Andariel group allowed them to send the stolen information directly to North Korean military intelligence, advancing the country's military and nuclear ambitions, according to federal prosecutors. They targeted valuable information related to fighter aircraft, missile defense systems, satellite communications, and radar systems.

Stephen A. Cyrus, an FBI agent based in Kansas City, emphasized the impact of these cybercrimes on the citizens of Kansas, stating that while North Korea uses cybercrimes to evade international sanctions and fund its ambitions, the consequences directly affect the lives of people in the state.

Online court records do not indicate an attorney for Hyok, who has lived and worked in North Korea's military intelligence agency's offices in Pyongyang and Sinuiju.

The Justice Department has been aggressively pursuing cases related to North Korean hacking, often highlighting the profit-driven motives behind the country's cybercriminal activities. In this case, the FBI was alerted by a Kansas medical center that fell victim to the cyberattack. Patient files, laboratory test results, and computer systems crucial for operating hospital equipment were encrypted and inaccessible. A Colorado health care provider also fell prey to the same ransomware variant.

Federal investigators were able to trace the ransom payments by following the blockchains. The money, initially demanded in Bitcoin, was eventually converted into Chinese currency and transferred to a Chinese bank. The FBI managed to seize approximately $500,000 in ransom payments from the laundering accounts, including the entire amount demanded from the hospital.

While the arrest of Hyok is unlikely, experts believe that the indictment may result in sanctions that could hamper North Korea's ability to collect ransoms in such a manner, potentially removing the motivation for future cyberattacks on critical entities like hospitals. However, analysts warn that this may just push the hackers to resort to cryptocurrency theft instead.

The involvement of a Chinese entity as one of the victims raises questions about China's stance on being targeted, given its alignment with North Korea. Cybersecurity experts speculate that China may not be too pleased with this development, considering the potential implications for their own security.

The Department of Justice's actions against North Korean cybercriminals highlight the ongoing efforts to combat cyber threats from the reclusive nation, aiming to protect the integrity of critical infrastructure and safeguard the interests of the United States and its allies.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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