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North Korea, cyberattacks and 'Lazarus': What we really know

TOKYO (AP) -- With the dust now settling after "WannaCry," the biggest
ransomware attack in history, cybersecurity experts are taking a deep dive
into how it was carried out, what can be done to protect computers from
future breaches and, trickiest of all, who is to blame.

Beyond the frequently used shorthand that North Korea was likely behind the
attack lies a more complicated story of the rise of an infamous group of
hackers known as "Lazarus," who may be using secret lairs in northeast
China and have created a virtual "malware factory" that could wreak a lot
more havoc in the future.

Who are they?

On Dec. 19, 2014, just one month after a devastating hack hobbled Sony
Pictures Entertainment, the FBI's field office in San Diego issued a press
release stating North Korea was the culprit and saying such cyberattacks
pose "one of the gravest national security dangers" to the United States.

Its claim North Korea was to blame has been disputed.

An industry consortium led by Novetta launched "Operation Blockbuster" and
in 2016 released a detailed public report on the attack that lined up with
the FBI's conclusion that the tactics, tools and capabilities strongly
indicated the work of a "structured, resourced and motivated organization,"
but said its analysis could not support the direct attribution of a
nation-state.

It determined the attack "was carried out by a single group, or potentially
very closely linked groups, sharing technical resources, infrastructure and
even tasking."



It named the group Lazarus and tied it to a string of attacks dating back
to 2007 or 2009.



Researchers at cybersecurity giant Kaspersky Labs, which also participated
in Operation Blockbuster, surmised the Lazarus attackers are probably
located in a time zone eight or nine hours ahead of Greenwich Mean Time -
which would include China, Malaysia and parts of Indonesia, among other
places - because they seem to start working at around midnight GMT and
break for lunch three hours later.

They even claimed the hackers get roughly 6-7 hours of sleep per night.

It also said it found indications of the Korean language on a majority of
the computers being used.

James Scott, a senior fellow at the Institute for Critical Infrastructure
Technology, a Washington-based think tank, said the group is believed to
outsource the development of malware to "numerous external threat actors."

But he said any connections between Lazarus and North Korea remain unclear.

Jon Condra, director of Asia Pacific research at the cybersecurity firm
Flashpoint, cautiously noted the theory at least some Lazarus Group hackers
are working out of China and that they may include North Koreans.

"It is widely believed that at least some North Korean hacking units
operate out of Northeastern China, the city of Shenyang, in particular, but
hard evidence is scant," he said. "It is entirely possible that the Lazarus
Group is not entirely made up of North Korean actors, but may also have
Chinese members."

Kaspersky took another look into Lazarus following the attempted heist of
$900 million from the central bank of Bangladesh in February last year. It
found Lazarus is both accelerating its activities and morphing rapidly.

According to Kaspersky, the Lazarus Group now has its own cybercrime
subgroup, dubbed BlueNoroff, to help finance its operations through attacks
on banks, casinos, financial institutions and traders.

The disruptive and "asymmetric" nature of cyber warfare clearly makes it a
weapon North Korea can be assumed to want to exploit against its much more
powerful adversaries in a military conflict.

Cybercrime would also seem to be extremely attractive to North Korea. It's
hard to trace, can be done on the cheap and, for those who can master the
technological expertise, the opportunities seem to be everywhere. It's a
less risky means of procuring illicit income than other activities North
Korea has been accused of in the past, such as drug trafficking and
counterfeiting U.S. $100 bills.

The U.S. government has not blamed WannaCry on North Korea - reflecting the
fact that determining the role of a nation-state can be a Sisyphean task.

Some campaigns attributed to the Lazarus Group suggest a lower-skilled
adversary than one might expect from one with full state backing - a factor
Beau Woods, the deputy director of the Cyber Statecraft Initiative at the
Atlantic Council, says is indicative of "a blurred line" between state and
non-state actors.

"Many countries allow - or at least tolerate - non-state actors that are
doing things that are ideologically aligned," he said. "With North Korea,
it appears to be the case that they rely very heavily on this kind of
criminal element-amateurs-professionals. It's a predominance of question
marks."




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