Defusing the Threat of North Korean IT Workers: Uncovering the Risks of State-Sponsored Cybercrime

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North Korean IT Workers Pose Insider Threat to Western Organizations

For several years, North Korean agents have been attempting to secure remote IT positions in Western companies, often successfully deceiving hiring teams with stolen identities and deepfake videos. These covert operatives target various industries, including technology, healthcare, finance, and government. Once hired, they may exploit their insider access to steal intellectual property, cryptocurrencies, or plant backdoors, while also funneling Western salaries to the North Korean government.

A Global Threat

A recent report by Sophos highlights the global nature of this threat, warning that any company hiring remote workers is a potential target. Sophos itself has been targeted by North Korean operatives posing as IT workers. The company notes that organizational size is not a factor in this scheme, with both small and large companies being targeted.

Combatting the Threat

To combat this threat, Sophos has developed a free toolkit designed to help CISOs and security managers implement controls to catch potential rogue employees. The toolkit takes a cross-functional approach, spanning the hiring process from employee acquisition to post-onboarding. It includes a matrix of 51 controls organized into eight categories, including HR/process, interview/vetting, identity/verification, and security/monitoring.

The toolkit emphasizes the importance of planning for both prevention and detection. It highlights security monitoring and threat hunting as key detection-focused controls and recommends early threat hunts to build momentum and demonstrate risk to leadership.

Implementing the Toolkit

Implementing the Sophos toolkit requires a company-wide approach, with employees in relevant departments receiving early awareness training to understand their roles in spotting and stopping phony North Korean IT workers. Security leaders must also frame the issue in terms of business risk, emphasizing the potential legal penalties for unintentional salary payments to sanctioned countries.

The best way to implement the toolkit is to create a dedicated task force spanning cybersecurity, HR, legal, and finance, with clear ownership, escalation paths, and centralized documentation. Continuous, role-specific training and routine vendor audits are also crucial, as third-party recruiters and staffing partners can become weak links.

Benefits of Implementation

By implementing the Sophos toolkit, organizations can strengthen their screening of prospective hires, harden onboarding, improve monitoring of new employees, and create flexible governance that can adapt to evolving threats.