N. Korean hackers set to increase bitcoin attacks to evade sanctions

By Chyung Eun-ju

North Korean hackers may try to steal bitcoins and other crypto currencies to dodge sanctions, according to a cyber security firm's report cited by Bloomberg on Tuesday (local time).

North Korean leader Kim Jong-un appears to be interested in virtual cash because it is secure and secretive. A crypto currency would thus give leeway for the isolated state to move funds where it wants to and change it for various currencies.

In retaliation for North Korea's sixth nuclear test early this month, the United Nations Security Council on Monday approved sanctions that could reduce about 30 percent of oil exports to the North, cutting off more than 55 percent of refined petroleum product exports to the state.

The sanctions could also cut the country's textile exports by 90 percent.

"We definitely see sanctions being a big lever driving this sort of activity," said Luke McNamara, a researcher at FireEye and author of the report.

"They (North Korea) probably see it as a very low-cost solution to bring in hard cash."

McNamara's report said, "Since May 2017, we have observed North Korean actors target at least three South Korean crypto currency exchanges with the suspected intent of stealing funds."

Bloomberg tech reporter Yuji Nakamura said, "The reason they are targeting South Korean exchanges is obvious because of the language.

"I'm sure it's much easier for the hackers to get in there, but South Korea is actually one of the busiest trading hubs for bitcoin."

In June, North Korea allegedly attacked Seoul-based Bithumb, the world's second-largest virtual currency exchange by volume and number one for ethereum, a virtual currency.

Hackers use spearphishing ― a method of sending emails of tax-themed lures and deploying malware ― to steal virtual cash, according to FireEye.

North Korean hackers were suspected of infiltrating global banks through cyber attacks in 2016.

Security experts predict that North Korea's attempts to hack into digital cash will only increase as the new sanctions kick in.

A single bitcoin is worth more than 4.8 million won ($4,300). Bitcoin has shown stellar growth in 2017, with its value quadrupling from the start of the year to August.