What is Apt38: Information on Cybercrime Organisation and Its Activities

In the cybersecurity world, APT38 and Lazarus are well known as a cybercrime organisation originating from North Korea and notorious for financial theft.

APT38 is a group of hackers who have managed to steal millions of dollars without a trace by targeting international banking systems with their carefully designed cyber attacks – this makes them particularly dangerous in the world of cybercrime.

Apt38 Identity

APT38 is a North Korean-sponsored cyber threat actor thought to be related to the Lazarus Group. It is known for its sophisticated cyber heist operations against the financial sector, and it is alleged that a North Korean-backed group is likely behind these activities. It is believed that this group’s goal is to finance North Korea’s lack of resources after it faces international sanctions.

Known for its diversified and sophisticated attack strategies against global financial institutions and cryptocurrency exchanges, APT38 seeks financial gain by leveraging its considerable technical capabilities, as well as conducting detailed intelligence gathering and long-running cyber espionage campaigns. Their advanced cyber attack capabilities have led them to become an organisation of concern and scrutiny among the international cybersecurity community. APT38’s activities are considered in the context of state-sponsored financial crimes and are important in shaping global security strategies.

North Korea Connection

APT38 is a cybercriminal organisation linked to North Korea’s wide range of cyber operations. It is claimed that this organisation acts in the national interests of the country.

This group is a highly sophisticated threat actor created to infiltrate North Korea’s international financial system and gain economic gain. APT38 activities are considered as a concrete example of state-sponsored hybrid cyber operations.

APT38 stole $81 million from Bangladesh Bank in 2016.

Such North Korean attacks on the global financial system are portrayed as part of the country’s efforts to circumvent economic embargoes. The aim of these attacks, carried out with advanced cyber capabilities and careful planning, is to compensate for the economic damage caused by sanctions. The actions of APT38 have become a priority issue in determining cyber security strategies.

Role in the World of Cybercrime

APT38, a state-sponsored cybercrime organisation, is prominent in complex cyber theft operations against the financial sector. This group is known for direct money theft rather than ransomware.

The group targets banks, financial institutions and cryptocurrency exchange platforms. APT38 infiltrates the systems of these organisations and manipulates resource transfers, often using long-term and highly targeted espionage techniques.

In carrying out these actions, APT38 uses complex malware packages and network penetration strategies to bypass security systems as well as to erase their traces. It is observed that a multi-stage and disciplined approach is preferred in attack processes.

According to cyber security researchers, APT38 has a unique position in the cybercrime world with its state-sponsored financing actions. Where it differs from many other threat actors is that it uses in-depth expertise and sophisticated attack methods against financial systems.

These actions of APT38 pose a serious threat to the protection of international financial order and security. The organisation’s actions are considered a critical case to be considered in shaping global cybersecurity policies.

For more information about state-sponsored cyber threats, you can review our Cyber Threat Intelligence Training course.

Highlighted Operations

APT38 is known for its various attack operations against South Korea’s banking systems. Among these attacks, the organisation has been recorded to have stolen millions of dollars by targeting the Swift banking network. These proceeds, obtained through the use of complex transaction breakdowns and hard-to-trace transactions, played a key role in expanding the organisation’s resources.

Another important operation was the targeting of the Bangladesh Central Bank in 2016, where approximately $81 million was successfully stolen. In this operation, APT38 transferred money from the bank’s accounts at the New York Fed by using fake Swift messages and exploiting system vulnerabilities. This attack, which required detailed and meticulous planning, perfect timing and a high level of technical skill, has created a case that can be described as ‘the perfect bank robbery’ in the cybercrime world.

Bank Thefts

APT38’s success in bank robberies is due to its ability to apply sophisticated cyber attack techniques. The organisation is classified as an advanced persistent threat (APT) actor and is adept at creating customised threats against the financial sector.

High-profile bank robberies are evidence of the sophisticated strategies used by APT38 to gain illicit financial gains. These attacks often involve meticulously crafted complex operations consisting of multiple phases, each of which is managed with secrecy and care. In the preparatory stages of attacks, targets are meticulously identified and system vulnerabilities are thoroughly analysed.

In these attacks, APT38 utilises methods such as planting malware that manages to infiltrate banks’ internal networks. The organisation analyses the technological infrastructure of banks in detail and develops techniques to overcome existing security measures. These techniques may include phishing, exploiting system vulnerabilities, insider help or complex social engineering techniques.

After overcoming security measures, the organisation focuses on the banks’ transfer systems, where it arranges fake transactions that mimic non-abnormal transactions. This reduces any suspicion and supervision during the operation, allowing large amounts of funds to be withdrawn without a trace. These transactions play a vital role in APT38’s ability to disguise money transfers and buy time.

APT38’s bank robberies pose a serious threat to the international financial system, making such activities difficult to detect. The financial gains made by the organisation through these methods are often used to serve North Korea’s economic and political objectives.

You can review our Cyber Security Fundamentals Training course to learn about detecting and preventing such cyber attacks.

Cryptocurrency Attacks

With the increase in the value and popularity of the cryptocurrency market, APT38’s illegal activities have also turned towards these areas. Especially targeting cryptocurrency exchanges, it finds and exploits security vulnerabilities and steals significant amounts of cryptocurrencies.

Vulnerabilities in crypto exchanges become easy targets for the organisation. The weakness of their security infrastructure triggers these attacks.

APT38 uses sophisticated methods to infiltrate crypto exchanges, which can be achieved through phishing attacks or malware. The attacks are aimed at compromising systems and abusing authorisations.

These attacks by the organisation in the form of leaking cryptocurrencies jeopardise the liquidity of exchanges and undermine investor confidence. This situation creates fluctuations in market values, causing financial damage to many investors.

The cryptocurrency attacks carried out by APT38 highlight the risks associated with the relative newness of this asset class and the lack of regulatory mechanisms. The complex nature of the attacks highlights the organisation’s competence in this area and the need to constantly update defence strategies.

These attacks have increased the importance of improving security protocols in the cryptocurrency industry and international cooperation to counter cybercrime. The reliability and stability of the industry can be maintained through effective cyber defence measures.

Methods and Techniques

APT38 has developed highly sophisticated cyber attack methods while targeting financial institutions. In particular, camouflaged malware, long-term and carefully planned operations have become the signature of this organisation. Infiltrating systems and stealing data from there is one of the most common tactics known by APT38. Techniques such as spear-phishing attacks, watering hole attacks and exploitation are the main tools used in these stages, allowing them to access sensitive information. In addition, the organisation strategically uses spoofing and pivoting to deepen and sustain their progress in the network.

Infiltration Strategies

APT38 infiltration techniques are highly sophisticated.

This criminal organisation organises long-term campaigns that require energy and patience. To infiltrate corporate networks, teams conduct detailed reconnaissance activities; this process includes the target’s infrastructure, security vulnerabilities and personal information of its employees. This increases the chances of success and reduces the risk of discovery.

Creativity and technical expertise are essential.

APT38 has skilled cyber operators – each equipped with limitless tools and techniques designed to maximise privacy and access. Social engineering is frequently used, especially to gain the trust of employees and obtain credentials such as usernames and passwords.

Fake emails and malicious websites are only part of the job.

Other methods used in APT38 cyberattacks include malware delivery, exploiting zero-day vulnerabilities, and multi-stage targeted infiltrations. As a result, they compromise sensitive information and funds in financial institutions. Therefore, up-to-date threat intelligence and continuous security training are essential to counter these threats by 2024. In addition to increasing system security, the focus should be on raising employee awareness of cyber threats.

Malicious Software Usage

APT38 organises cyber attacks using different types of malware. The purpose of this software is usually data theft and system infiltration.

When targeting financial institutions, the specialised hacker group actively uses spyware such as RATs (Remote Access Tools) and keyloggers, as well as advanced banking trojans. These malicious malware can contain automation scripts that mimic user interactions.

This type of malware can penetrate the victim’s computer at a deep system level and is used to manipulate sensitive financial transactions by enabling remote control. The compromised machines then communicate with command and control (C2) servers to carry out the attackers’ directives.

Another characteristic of the malware used by APT38 is that it is polymorphic and metamorphic; it changes frequently, making it difficult for antivirus programs to detect. The special malware developed is optimised to bypass specific security measures.

It is critical for organisations to strengthen their security defences against sophisticated threat actors such as APT38. Proactive cyber security measures and continuously updated signature bases are the primary line of defence against such attacks.

For more information about security strategies and cyber defence techniques, you can read our article What is Incident Response?

Protection Methods

It is essential to adopt multi-layered security strategies to protect against advanced threat groups such as APT38. The first step is to implement strict network security policies and update these policies regularly. Effective use of methods such as firewalls and network segmentation that prevent unauthorised access is critical, especially in internal networks where sensitive data is stored. In addition, increasing employees’ cyber security awareness and training them on security best practices also play an important role in preventing such attacks.

On the other hand, regular security audits and penetration tests make it possible to identify and eliminate potential vulnerabilities. In order to identify advanced malware likely to be used by APT38, deep packet analysis and behaviour-based threat detection systems that detect anomalies are of great importance. Integrating intrusion detection and response protocols, incident response plans and rapid warning systems minimises the impact of threats by increasing immediate response capacity. These measures are vital in preventing complex cyber attacks by APT38.

Firewalls and Antiviruses

Firewalls are one of the basic layers of protection of any network and prevent unauthorised access. It is vital for detecting and blocking attacks by sophisticated threat actors such as APT38.

Firewall configurations should be regularly updated according to the advanced methods used by APT38 and integrated into layered security approaches. Antivirus software should also be kept up-to-date and selected to provide proactive protection against zero-day attacks.

In the complex threat landscape, the effectiveness of antiviruses and firewalls increases when combined with constantly updated threat intelligence. Being prepared for current threat vectors and APT38 tactics maximises the effectiveness of these protection tools.

Firewalls and antivirus solutions should use data-driven approaches when examining communications inside and outside the organisation’s network. This is a critical approach to contain the advanced threats of APT38.

Cybercriminal organisations use threats that are constantly evolving, so firewalls and antivirus solutions must be able to keep pace. These tools must be flexible and dynamic to counter the sophisticated tactics used by groups such as APT38.

Employee Training and Awareness

It is vital that employees are informed against sophisticated cyber attacks such as APT38. Training is the first line of defence for early detection of threats.

Training programmes should increase employees’ vigilance against attacks such as social engineering and phishing, teach them how to recognise suspicious emails and how to act in accordance with internal protocols. In addition, security policies should be kept up to date and employees should be continuously informed about common threats.

Employees’ awareness should be raised by organising regular informative seminars and workshops on current cyber security trends and the changing attack vectors of APT38. Such trainings provide the skills needed to react to threats immediately.

Periodic cyber security training for all employees, not just new hires, should be a continuous component of corporate security. This is a must for effective combat against constantly evolving threat groups such as APT38.

The training of employees on security increases the resilience of companies against threat actors such as APT38 . This should be a fundamental part of every company’s cyber security strategy.

To learn more about APT38, you can check out MITRE’s APT38 profile.

Frequently Asked Questions About Apt38