North Korea-Linked Crypto Hacks: Less Loot Despite More Attacks, Warns Chainalysis
Summary:
Despite intensifying their efforts, hacking groups linked to North Korea stole less cryptocurrency in 2023 compared to the preceding year, as per a blockchain analytics firm, Chainalysis. The decline was recorded despite the escalated frequency of attacks - 20 in 2023 vs. 15 in 2022. Hacks associated with North Korea are predicted to keep diversifying and turning more sophisticated. With tightened security in decentralized finance (DeFi) protocols, the hackers have evidently expanded their scope to centralized services and wallets. The article also highlights the necessity for improved security practices, enhanced employee cybersecurity awareness, effective network monitoring, and reduced reliance on centralized systems.
Despite intensifying their operations and diversifying their targets in 2023, hacking groups affiliated with the Democratic People's Republic of Korea (DPRK) stole less cryptocurrency, as per a recent report by Chainalysis, a blockchain analytics company. In 2022, the value of cryptocurrency lost due to North Korea-associated cyberattacks amounted to $1.7 billion across 15 incidents. However, despite experiencing more attacks in 2023, totaling 20, Chainalysis estimated that cybercriminals affiliated with North Korea only managed to misappropriate approximately $1 billion in cryptocurrency. Despite the increased frequency, the value of their illicitly obtained funds did not exceed the previous year's levels.
Erin Plante, Vice President of Investigations at Chainalysis, predicts an increase in the complexity and diversification of DPRK-related cyberattacks. As the profits garnered from decentralized finance (DeFi) protocols diminish due to enhanced security measures, North Korean cybercriminals were forced to extend their reach to centralized services and wallets, according to Plante.
Plante highlighted that in 2023, North Korea-linked cybercriminals leaned more towards proven hacking techniques such as phishing and social engineering. She emphasized that these traditional modes of attack can be thwarted with well-informed and aware personnel. Plante emphasized that effective security practices form the foundation for robust cybersecurity procedures and urged organizations to ensure their employees remain vigilant and technically proficient in combatting cyber threats.
Alluding to a pattern they've observed in DPRK-related incursions, Plante pointed out that these infiltrators spend a considerable amount of time within these networks, underscoring the need for heightened network surveillance and fortification.
Commenting on crypto security, Plante urged DeFi protocols potentially susceptible to on-chain failures to implement systems that monitor on-chain activities. For platforms that could be at risk from off-chain threats, they are advised to rely less on centralized products and services.
Summarizing her outlook, Plante expects North Korean hackers to persist in their search for lucrative stealing opportunities. She warns, "Their rapid adaptability, even when opportunities disappear, continues to classify them as a sophisticated adversary."
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Published At
1/24/2024 5:00:00 PM
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