North Korea Stole $2 billion for its WMD programs

Primer: North Korea has launched 4 rounds of missiles in less than 2 weeks. Talks between the United States and North Korea have stalled. The missiles tested during the recent launches are short range, however can reach South Korea and can travel as far as an estimated 400 miles. These test missiles allegedly are very advanced such they are being advertised as having the abilities to evade missile defense systems. Additionally, each launch took place from a different ground location.

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UNITED NATIONS (Reuters) – North Korea has generated an estimated $2 billion for its weapons of mass destruction programs using “widespread and increasingly sophisticated” cyber attacks to steal from banks and cryptocurrency exchanges, according to a confidential U.N. report seen by Reuters on Monday.

Pyongyang also “continued to enhance its nuclear and missile programmes although it did not conduct a nuclear test or ICBM (Intercontinental Ballistic Missile) launch,” said the report to the U.N. Security Council North Korea sanctions committee by independent experts monitoring compliance over six months.

The North Korean mission to the United Nations did not respond to a request for comment on the report, which was submitted to the Security Council committee last week.

The experts said North Korea “used cyberspace to launch increasingly sophisticated attacks to steal funds from financial institutions and cryptocurrency exchanges to generate income.” They also used cyberspace to launder the stolen money, the report said.

“Democratic People’s Republic of Korea cyber actors, many operating under the direction of the Reconnaissance General Bureau, raise money for its WMD (weapons of mass destruction) programmes, with total proceeds to date estimated at up to two billion US dollars,” the report said.

North Korea is formally known as the Democratic People’s Republic of Korea (DPRK). The Reconnaissance General Bureau is a top North Korean military intelligence agency.

The U.N. experts said North Korea’s attacks against cryptocurrency exchanges allowed it “to generate income in ways that are harder to trace and subject to less government oversight and regulation than the traditional banking sector.”

The Security Council has unanimously imposed sanctions on North Korea since 2006 in a bid to choke off funding for Pyongyang’s nuclear and ballistic missile programs. The Council has banned exports including coal, iron, lead, textiles and seafood, and capped imports of crude oil and refined petroleum products.

U.S. President Donald Trump has met with North Korea leader Kim Jong Un three times, most recently in June when he became the first sitting U.S. president to set foot in North Korea at the Demilitarized Zone (DMZ) between the two Koreas.

They agreed to resume stalled talks aimed at getting Pyongyang to give up its nuclear weapons program. The talks have yet to resume and in July and early August, North Korea carried out three short-range missiles tests in eight days.

The U.N. report was completed before last week’s missile launches by North Korea, but noted that “missile launches in May and July enhanced its overall ballistic missile capabilities.”

The U.N. experts said that despite the diplomatic efforts, their “investigations show continued violations” of U.N. sanctions.

“For example, the DPRK continued to violate sanctions through ongoing illicit ship-to-ship transfers and procurement of WMD-related items and luxury goods,” the U.N. report said.

Fancy Bear, APT28, IoT, Hacking via Printers

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Primer: U.S Ambassador to Russia, Jon Huntsman just issued his letter of resignation to President Trump. He states that he wants to return home to Utah due to a growing family. Gotta wonder if Amb. Huntsman ever really challenged Moscow on hacking and security intrusions of the United States.

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MIT: A group of hackers linked to Russian spy agencies are using “internet of things” devices like internet-connected phones and printers to break into corporate networks, Microsoft announced on Monday.

Fancy Bear never hibernates: The Russian hackers, who go by names like Strontium, Fancy Bear, and APT28, are linked to the military intelligence agency GRU.

The group has been active since at least 2007. They are credited with a long list of infamous work including breaking into the Democratic National Committee in 2016, the crippling NotPetya attacks against Ukraine in 2017, and targeting political groups in Europe and North America throughout 2018.

Insecurity of Things: The new campaign from GRU compromised popular internet of things devices including a VOIP (voice over internet protocol) phone, a connected office printer, and a video decoder in order to gain access to corporate networks. Microsoft has some of the best visibility into corporate networks on earth because so many organizations are using Windows machines. Microsoft’s Threat Intelligence Center spotted Fancy Bear’s new work starting in April 2019.

The password is password: Although things like smartphones and desktop computers are often top of mind when it comes to security, it’s often the printer, camera, or decoder that leaves a door open for a hacker to exploit.

In multiple cases, Microsoft saw Fancy Bear get access to targeted networks because the IoT devices were deployed with default passwords. In another case, the latest security update was not applied. Using those devices as a starting point, the hackers established a beachhead and looked for further access.

“Once the actor had successfully established access to the network, a simple network scan to look for other insecure devices allowed them to discover and move across the network in search of higher-privileged accounts that would grant access to higher-value data,” Microsoft warned in a blog post published on Monday.

The hackers moved from one device to another, establishing persistence and mapping the network as they went, communicating with command and control servers all the while.

Global targets: Microsoft has been closely watching this group over the last year.

Of the 1,400 notifications the company delivered to those targeted or compromised by Fancy Bear, 20% have been to global non-governmental organizations, think tanks, or politically affiliated organizations. The remaining 80% have been to various sectors including government, technology, military, medicine, education, and engineering.

“We have also observed and notified STRONTIUM attacks against Olympic organizing committees, anti-doping agencies, and the hospitality industry,” Microsoft’s blog warned.

Last year, the FBI took disruptive action against a Fancy Bear campaign known as “VPNFilter” which targeted routers and network storage devices with malware with destructive capabilities of “bricking” a device by deleting firmware and rendering the device unusable. That campaign especially targeted Ukraine, a favorite target of Fancy Bear.