FBI Alerts Crypto Firms of North Korean 'Social Engineering' Scams

The United States Federal Bureau of Investigation (FBI) has alerted employees at digital asset companies about the latest attempts by the Democratic People’s Republic of Korea to steal cryptocurrency.

North Korean Cyber Actors Targeting Crypto Companies

In a notice issued on September 3, the FBI reported that North Korean malicious cyber actors are targeting employees at decentralized finance and cryptocurrency companies. Their aim is to steal funds through sophisticated and intricate social engineering campaigns. The federal agency specifically warned that the scammers have been researching firms associated with cryptocurrency-tied exchange-traded funds, or ETFs.

Details of the Scam

The scammers have been using strategies such as offering fake employment or investment opportunities and impersonating well-known individuals associated with certain technologies to deceive users. The scammers may then provide a link to a "pre-employment test" or another download which installs malware. The FBI stated, “The actors usually attempt to initiate prolonged conversations with prospective victims to build rapport and deliver malware in situations that may appear natural and non-alerting. The actors usually communicate with victims in fluent or nearly fluent English and are well versed in the technical aspects of the cryptocurrency field.”

North Korean Hackers' History of Crypto Scams

Since 2017, North Korean hackers have stolen approximately $3 billion in cryptocurrency using such schemes. The Lazarus Group, a group of hackers associated with the reclusive nation, has allegedly been responsible for many high-profile attacks targeting cryptocurrency users. The FBI has issued several warnings related to cryptocurrency scammers, including those impersonating employees of cryptocurrency exchanges and targeting users to compromise their accounts. In June, the federal agency reported that malicious actors had posed as employees of law firms offering fake cryptocurrency recovery services.

Bottom Line

The FBI's warning serves as a stark reminder of the risks associated with the digital asset industry, especially considering the technical sophistication and persistence of malicious actors. As the cryptocurrency sector continues to grow, it's crucial for individuals and companies to stay vigilant and informed about potential threats. What are your thoughts on this issue? Share this article with your friends and discuss it. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.