Sony, North Korea, and Hacking

[john]

This is some nasty business. Who's next?

[video=youtube][video=youtube]https://www.youtube.com/watch?v=hMNgCep0vEo[/video]

A glimpse into the world of North Korea's hacking elite
Summary:In the country dubbed the 'Hermit Kingdom,' just how does the cyber elite operate?

By Charlie Osborne for Zero Day | December 5, 2014 -- 10:52 GMT (02:52 PST)





North Korea. A country well-known for economic problems and poverty, starvation, lofty nuclear goals and a scathing hatred of the United States -- which controls "puppet" South Korean leaders -- is also a land where social class often dictates a person's position in life.

The idea of "songbun" describes a person's social value depending on family connections. In order to attend top universities such as the Kim il-sung university, a student not only needs top grades and a flawless record, but the right background. Should a student succeed, the songbun of the student's family may be raised.

North Korea, despite its self-imposed isolation, desperately requires technology and knowledge from the West, especially surrounding science, agriculture and manufacturing. While international leaders have criticized the country for alleged human rights abuse and nuclear programs, Pyongyang University of Science and Technology remains funded by the West, and is one of few institutions that allow Western teachers.

The leader of the country, Kim Jong-un, has poured resources into nuclear programs while much of the population goes hungry, and now, investment is heavy in the next-generation weapons of warfare -- skills in hacking and computer science.

While access to the Internet is strictly controlled for the masses, for some, specialization in the web and computer networks has created an elite class, set apart.

In an interesting feature published by Reuters, the news agency reveals the existence of a North Korean cell called Bureau 121. According to defectors from the state, the most talented computer experts in the country are recruited into the unit, which is part of the General Bureau of Reconnaissance. The bureau focuses on spying -- going far beyond reliance on human snitching to maintain control -- and instead dedicates itself to the surveillance of foreign powers.

According to Reuters sources, the agency is also involved in state-sponsored hacking, ordered by the Pyongyang government to sabotage enemies.

One only has to scan the website of the DPRK, the state-run official news agency of North Korea, to see potential targets.

Technically still in a state of war with the north, South Korea is often a target of the country's attacks. However, North Korea has also made no secret of its hatred of the United States, and so the country has come under suspicion for the recent attack on Sony's networks.

Sony's internal systems were hacked last month, which resulted in sensitive data belonging to employees and contractors being leaked online. From passport photocopies to passwords and internal audit documents, more and more damage is being revealed every day.

A hacking group called Guardians of Peace are believed to be to blame, but North Korea is under scrutiny in particular.

Why? A film called "The Interview" may be the culprit. The film, which follows two journalists hired by the CIA to assassinate Kim Jong-un, received complaints from North Korean officials which were ignored by the United Nations. North Korea later described the film as an "act of war."

However, it is worth noting this phrase is used often by the state against South Korea and the United States, and as of yet, has never been acted upon.

When North Korean officials were asked whether the country was the source of the cyberattack, the ambiguous phrase "Wait and see" was given in response.

Jang Se-yul, a former student of North Korea's military college for computer science, said candidates for Bureau 121 are handpicked as young as 17 years of age. The destination for chosen students is the University of Automation. After five years of study at the Pyongyang-based campus, the students graduate to join Bureau 121. Places are highly sought after, with 100 accepted for every 2,500 applicants.

Approximately 1,800 hackers are in employ at the unit, conducting campaigns under the umbrella of what is known as the "Secret War" in the state.

The unit also has overseas teams, one of which a friend of Jang Se-yul's works within, earning him and his family a large apartment in upscale Pyongyang. As the only city seen by foreign visitors -- and bedecked as a result -- entry into Pyongyang is highly sought after and rarely granted by the ruling party. Officially, the hacker is an employee of a trade firm.

Jang said:

No one knows [..] his company runs business as usual. That's why what he does is scarier. My friend, who belongs to a rural area, could bring all of his family to Pyongyang. Incentives for North Korea's cyber experts are very strong [..] they are rich people in Pyongyang.

According to Kaspersky Labs and other researchers, malware launched against Sony is similar to attacks levied against South Korea. Last year, over 30,000 PCs at South Korean banks and broadcasting firms were hit, and the malware in question, "DarkSeoul," has striking familiarities to the software used in Sony's security breach.

FROM: http://www.zdnet.com/article/a-glimpse-i...ing-elite/