Fortune 500 Companies Exploited To Fund North Korea's Nuclear Program Through Kim Jong Un's 'Mafia'-Style Cybercrime Operations: Report
Cybersecurity firm DTEX has compared North Korea’s cybercrime operations to a mafia organization controlled by Kim Jong Un. The operations involve a global network of North Korean technologists who infiltrate Fortune 500 companies and launder money to support Kim’s nuclear and ballistic missile ambitions.
What Happened: North Korea has intensified its strategy this year by enlisting 90 top graduates for an AI research center, while also requiring them to hand over twice their monthly earnings. This development coincides with efforts towards laundering $1.5 billion stolen in a cryptocurrency exchange hack earlier this year, revealed the report.
These IT workers, who are part of the regime's cyber cartel, collaborate with malicious North Korean Advanced Persistent Threat (APT) groups linked to the Korean People's Army. According to UN estimates, the IT workers generate between $250 million and $600 million annually, while the APTs have stolen at least $3 billion in cryptocurrency.
Many of these IT workers and APT actors, having trained together at elite institutions such as Kim Sung Il Military University and Kumsong Academy, are familiar with one another. This network of operatives, referred to as a "bro network," is a crucial part of the cybercrime operations.
The report highlights that North Korean workers are forced to compete under brutal conditions—working up to 16 hours a day, six days a week—with minimal breaks. They keep less than 20% of their earnings and must cover costs for operations and equipment themselves, while the main beneficiaries are Kim Jong Un's family and the North Korean elite.
Why It Matters: Earlier this year, it was reported that thousands of North Korean IT workers were impersonating Americans to land jobs at Fortune 500 companies, with their earnings being used to fund Kim Jong Un‘s illicit weapons programs. They were leveraging advanced AI to alter their appearances and voices and even managing to hold multiple jobs simultaneously, thereby increasing the amount of money funneled back to North Korea.
Furthermore, North Korean hackers infiltrated the U.S. corporate system to launch a malware campaign aimed at crypto developers. They set up fake companies using fake names and addresses in the US to carry out their operations.
Moreover, in March, North Korea, with the help of the infamous hacking syndicate Lazarus Group, has quietly become one of the biggest holders of Bitcoin. The stash was valued at more than double the amount held by El Salvador, the well-known Bitcoin-friendly country.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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