North Korea has reportedly expanded its illicit revenue streams by running a cyber scheme involving the creation and sale of gambling websites pre-loaded with malware. South Korea’s National Intelligence Service (NIS) identified South Korean cybercrime organizations as the buyers of these sites. The cyber faction responsible, affiliated with North Korea’s Office 39, known as “Gyeongheung,” allegedly makes billions of dollars in profit through this operation. The websites, available for rent at $5,000 per month, include an extra $3,000 fee for tech support. Notably, an additional $2,000 to $5,000 may be granted if the website successfully gathers bank account details from Chinese PayPal accounts.
According to the NIS, the investigated websites contained malicious code designed to automatically place bets, enabling threat actors to steal personal information from gamblers. Approximately 1,100 pieces of personal data related to South Korean citizens were reportedly targeted. To circumvent UN sanctions restricting the hiring of North Korean workers, the cyber group posed as Chinese IT workers, forging identification cards and stealing career credentials. Money transactions were concealed using bank accounts established with Chinese names, and they borrowed South Korean cyber gambling gang accounts to cover their tracks. Despite sanctions, some clients knowingly engaged in business with the North Korean group, attracted by low costs and a shared language.
The cyber operation’s base, Gyeonghueng, is located in Dandong, a Sino-Korean border town known for China’s apparel industry. North Korean IT workers, operating illegally in the area, exploit the region’s low wages and blend seamlessly into the workforce. This multifaceted cyber threat showcases the sophistication of North Korea’s cyber activities, presenting challenges for cybersecurity and international sanctions.
