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US, Japan, South Korea Step Up Fight Against North Korean IT Fraud Network

US, Japan, South Korea tackle North Korean IT worker threats

The United States, Japan and South Korea, in partnership with cybersecurity firm Mandiant, co-hosted a forum in Tokyo on Tuesday to bolster defenses against deceptive remote IT worker schemes from North Korea that threaten businesses globally.

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The event brought together more than 130 participants from the governments of the three countries and industry partners, including companies often targeted by North Korean operatives.

Theft of Sensitive Data

In a statement released the same day, the U.S. Department of State spotlighted how Pyongyang targets “freelance work platforms, payment service providers, cryptocurrency companies, [artificial intelligence] industries and other Web3 technology companies” to generate illicit revenue. It said that money is funneled into North Korea’s nuclear and ballistic missile programs in violation of U.S. sanctions and United Nations resolutions.

“Engaging with these workers exposes companies to theft of sensitive data and assets, reputational harm and legal consequences, as well as increased risk of targeting by malicious North Korean cyber actors,” the State Department said.

US Businesses at Risk

According to U.S. Attorney Leah Foley, North Korean operatives pose a serious and immediate risk. “Thousands of North Korean cyber operatives have been trained and deployed by the regime to blend into the global digital workforce and systematically target U.S. companies,” she said in a recent Justice Department briefing.

In June, the Justice Department unveiled a major North Korean IT worker fraud scheme that yielded $17 million for the regime. The case involved an Arizona resident who ran a “laptop farm” that enabled Pyongyang’s workers to infiltrate over 300 U.S. businesses, including a Silicon Valley technology company and an aerospace manufacturer, among other Fortune 500 companies.

Officials from all three governments vowed to expand cooperation with industry. “The United States remains committed to combating North Korea’s sanctions violations and will continue to strengthen collaboration with Japan, the Republic of Korea and our industry partners to address this threat,” the State Department said.

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