North Korean Cyberattacks Target US Hospitals, NASA, and Military Bases: $10M Reward Offered

A North Korean military intelligence operative, Rim Jong Hyok, has been indicted for orchestrating cyberattacks on American healthcare

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A North Korean military intelligence operative, Rim Jong Hyok, has been indicted for orchestrating cyberattacks on American healthcare providers, NASA, and U.S. military bases, among others.

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Federal prosecutors revealed on Thursday that these attacks aimed to steal sensitive information and deploy ransomware to fund further cyber activities.

According to the indictment, Hyok laundered money through a Chinese bank to purchase computer servers and finance more attacks on global defence, technology, and government entities.

“North Korea uses these types of cyber crimes to circumvent international sanctions and fund its political and military ambitions,” said Stephen A. Cyrus, an FBI agent based in Kansas City. “The impact of these acts directly affects the citizens of Kansas.”

Targets and Impact of the Cyberattacks

Hyok targeted 17 entities across 11 U.S. states, including NASA and U.S. military bases, along with defence and energy companies in China, Taiwan, and South Korea. For over three months, Hyok and his team accessed NASA’s computer system, extracting over 17 gigabytes of unclassified data.

They also infiltrated computer systems of defence companies in Michigan and California, as well as Randolph Air Force Base in Texas and Robins Air Force Base in Georgia.

The state-sponsored Andariel group used malware to send stolen information to North Korean military intelligence, aiding the country’s military and nuclear ambitions.

“They’ve pursued details of fighter aircraft, missile defence systems, satellite communications, and radar systems,” noted a senior FBI official.

Investigative Breakthroughs and Legal Actions

In May 2021, a Kansas medical centre alerted the FBI after hackers encrypted its files and servers, blocking access to crucial patient information. The ransom note demanded Bitcoin payments worth approximately $100,000, threatening to post the files online if the demand was not met.

Investigators traced the Bitcoin transfers to two Hong Kong residents before the funds were converted to Chinese currency and accessed in China.

Federal investigators have managed to seize around $500,000 in ransom payments from money laundering accounts, including the full ransom from the Kansas hospital attack.

Despite the indictment, Hyok’s arrest is unlikely. However, the indictment could lead to sanctions that may hinder North Korea’s ability to collect ransoms, potentially reducing the motivation for future cyberattacks on critical entities like hospitals.

“Allan Liska, an analyst with the cybersecurity firm Recorded Future, remarked, “Now, unfortunately, that will force them to do more cryptocurrency theft. But the hope is that we won’t have hospitals disrupted by ransomware attacks because they’ll know that they can’t get paid.”

Broader Implications and International Response

The Justice Department has prosecuted multiple cases related to North Korean hacking, often highlighting a profit-driven motive that differentiates North Korean cyber criminals from those in Russia and China. In this case, the involvement of a Chinese bank and residents in the money laundering process raises questions about China’s stance on being targeted by an ally.

“China can’t be too thrilled about that,” Liska commented.

A reward of up to $10 million has been offered for information leading to Hyok or other foreign government operatives targeting critical U.S. infrastructure. This case underscores the global nature of cyber threats and the intricate efforts required to combat them.

In conclusion, the indictment of Rim Jong Hyok reveals the extensive cyber operations conducted by North Korea and the significant impact on U.S. and international entities. As legal and investigative efforts continue, the hope is to mitigate such cyber threats and protect critical infrastructure from future attacks.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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