Houston Chronicle

N. Korea grows as a cyber power

Hackers stealing millions, could unleash havoc

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When North Korean hackers tried to steal $1 billion from the New York Federal Reserve last year, only a spelling error stopped them. They were digitally looting an account of the Bangladesh Central Bank when bankers grew suspicious about a withdrawal request that had misspelled “foundation” as “fandation.”

Even so, Kim Jong Un’s minions got away with $81 million in that heist.

Their track record is mixed, but North Korea’s army of more than 6,000 hackers is undeniably persistent, and undeniably improving, according to U.S. and British security officials who have traced these attacks and others back to the North.

Amid all the attention on Pyongyang’s progress in developing a nuclear weapon capable of striking the continenta­l United States, the North Koreans have also quietly developed a cyberprogr­am that is stealing hundreds of millions of dollars and proving capable of unleashing global havoc.

Unlike its weapons tests, which have led to internatio­nal sanctions, the North’s cyberstrik­es have faced almost no pushback or punishment, even as the regime is using its hacking capabiliti­es for actual attacks against its adversarie­s in the West.

And just as Western analysts once scoffed at the potential of the North’s nuclear program, so did experts dismiss its cyber potential — only to now ac-

knowledge that hacking is an almost perfect weapon for a Pyongyang that is isolated and has little to lose.

The country’s primitive infrastruc­ture is far less vulnerable to cyber retaliatio­n, and North Korean hackers operate outside the country, anyway. Sanctions offer no useful response, since a raft of sanctions are imposed. And Kim’s advisers are betting that no one will respond to a cyberattac­k with a military attack, for fear of a catastroph­ic escalation between North and South Korea.

It is hardly a one-way conflict: By some measures, the U.S. and North Korea have been engaged in an active cyber conflict for years.

Both the U.S. and South Korea also have placed digital “implants” in the Reconnaiss­ance General Bureau, the North Korean equivalent of the CIA, according to documents Edward Snowden released several years ago. U.S.-created cyber and electronic warfare weapons were deployed to disable North Korean missiles, an attack that was, at best, only partially successful.

Indeed, both sides see cyber as the way to gain tactical advantage in their nuclear and missile standoff.

Once North Korea counterfei­ted crude $100 bills to try to generate hard cash. Now intelligen­ce officials estimate that North Korea reaps hundreds of millions a dollars a year from ransomware, digital bank heists, online video game cracking and, more recently, hacks of South Korean Bitcoin exchanges.

When Kim Jong Un succeeded his father, in 2011, he expanded the cyber mission beyond serving as just a weapon of war, focusing also on theft, harassment and political-score settling.

“Cyberwarfa­re, along with nuclear weapons and missiles, is an ‘all-purpose sword’ that guarantees our military’s capability to strike relentless­ly,” Kim reportedly declared, according to the testimony of a South Korean intelligen­ce chief.

And the array of U.N. sanctions against Pyongyang only incentiviz­ed Kim’s embrace.

“We’re already sanctionin­g anything and everything we can,” said Robert Silvers, former assistant secretary for cyberpolic­y at the Department of Homeland Security during the Obama administra­tion. “They’re already the most isolated nation in the world.”

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