According to the FBI, financial tension caused by United States sanctions sparked an influx of cybercrime in North Korea. Deputy assistant director of the cyber division at the FBI, Tonya Ugoretz, spoke at an event held at The Aspen Institute regarding the issue.
Many of the cyber attacks involving the theft of cryptocurrency from multiple platforms are suspected to originate from Pyongyang. However, Pyongyang is also suspected of facilitating numerous campaigns in support of cryptocurrency theft and ransomware.
The cyberattacks range from complex global attacks to a long list of small-scale scams and fraud. Many of the more complicated cryptocurrency schemes have also targeted specific exchanges in an effort to manipulate securities in other countries.
Other authorities agree that financial crisis has lead countries like North Korea to participate in cyber attacks. Director of the Cyber Threat Intelligence Integration Center, Erin Joe, stated that the FBI is no focusing its efforts on the prevention of cryptocurrency fraud as the number of incidences remains on the rise.
As a result of the high levels of fraud surrounding cryptocurrency, many have begun to question the depth of its corruption. With more and more countries facing the results of sanctions and other political actions, it appears as though the development of cryptocurrency for use as a weapon is becoming more common.
Authorities have also claimed that additional areas under the stress of United States sanctions have taken advantage of the poor security of cryptocurrency platforms to maintain a steady cash flow, including Russia and Venezuela.
The best way to handle these threats remains debated among authorities, but everyone seems to be in agreement that cryptocurrency demands stricter regulation and improved security protocols.
To learn more about cryptocurrency and related fraud, visit the Jeffrey Newman Law Whistleblower Help Center and blog!