The FBI has warned US cryptocurrency and DeFi firms about sophisticated North Korean cyber threats targeting Bitcoin ETFs and digital assets.
Targeted Cyber Attacks on DeFi Firms
The Federal Bureau of Investigation (FBI) has issued a Public Service Announcement (PSA), alerting decentralized finance (DeFi) firms to potential cyber threats from North Korea. They wrote,
“The Democratic People’s Republic of Korea (“DPRK” aka North Korea) is conducting highly tailored, difficult-to-detect social engineering campaigns against employees of decentralized finance (“DeFi”), cryptocurrency, and similar businesses to deploy malware and steal company cryptocurrency.”
Focus on Cryptocurrency ETFs
In the PSA, the FBI revealed that North Korean cyber actors have been focusing on cryptocurrency exchange-traded funds (ETFs). The recent surge in investments following the SEC’s approval of Bitcoin ETFs in January, which pushed Bitcoin prices to a record high of $73,000, has drawn attention from these state-sponsored hackers. These malicious actors are believed to be preparing for potential attacks on companies linked to cryptocurrency ETFs, indicating a heightened risk for firms operating in this sector.
Sophisticated Social Engineering Tactics
The FBI emphasized the complexity of North Korean social engineering schemes, noting that even companies with robust cybersecurity protocols could fall victim to these advanced tactics. The agency identified various methods employed by these actors, including crafting fake scenarios with personal details, impersonating known contacts, and offering unrealistic job or investment opportunities.
Indicators of North Korean Cyber Activity
The FBI has provided a list of potential indicators to help companies identify and prevent these attacks. Red flags include requests to execute code or download applications on company devices, unexpected job offers with high compensation, and attempts to move conversations to unverified messaging platforms. These tactics are designed to compromise the security of targeted firms and gain unauthorized access to their networks.
Recommendations for Mitigating Risks
To mitigate the risk of these sophisticated cyber threats, the FBI advises firms to develop unique methods for verifying contacts’ identities using separate communication platforms. The agency also recommends avoiding the storage of cryptocurrency wallet information on internet-connected devices, insisting on using virtual machines for pre-employment tests and enforcing multi-factor authentication for financial transactions.
Companies are further advised to limit access to sensitive network documentation, regularly rotate security measures, and funnel business communications through closed platforms with stringent authentication protocols. For firms handling large amounts of cryptocurrency, the FBI recommends blocking unauthorized downloads and disabling email attachments by default to prevent potential breaches.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
