N. Korea poses grave threat to cyber security, cutting off illicit funds to weapons program important: U.S. official

▲ Brian Nelson, under secretary of treasury for terrorism and financial intelligence, is seen speaking during a webinar hosted by the Washington-based Center for a New American Security think tank on July 19, 2023 in this captured image. (Yonhap)

US-NK cyber crime

N. Korea poses grave threat to cyber security, cutting off illicit funds to weapons program important: U.S. official

By Byun Duk-kun

WASHINGTON, July 19 (Yonhap) -- The United States is most concerned about cyber crimes committed by North Korean and Russian actors, a ranking U.S. official said Wednesday.

Brian Nelson, under secretary of treasury for terrorism and financial intelligence, also highlighted ongoing U.S. efforts to curb illicit cyber activities by North Korean actors that help fund the country's illegal weapons development programs.

"Obviously, the two state actors I worry the most about are the DPRK and Russia," Nelson said during a virtual seminar hosted by the Center for a New American Security, a think tank based in Washington, referring to North Korea by its official name, the Democratic People's Republic of Korea.

"I think ... you see how much they are relying on virtual assets in support of their weapons of mass destruction program. That is a significant, very significant national security concern that I work quite a bit about. And given that, obviously, diplomatic engagement has been quite challenging with the DPRK, this sort of cutting off this funding stream meaningfully, I think, is important," he added.

Led by Nelson, the treasury department's terrorism and financial intelligence bureau has imposed sanctions on more than a dozen North Korean entities and individuals this year.

"The United States and our partners remain committed to combating the DPRK's illicit revenue generation activities and continued efforts to steal money from financial institutions, virtual currency exchanges, companies, and private individuals around the world," Nelson said in May when the treasury department imposed sanctions on four North Korean entities and one North Korean national for illicit cyber activities that support North Korea's weapons programs.

South Korea's spy agency said Wednesday (Korea time) that North Korea stole a total of US$700 million worth of cryptocurrency in 2022, enough to fund the launch of some 30 intercontinental ballistic missiles.

Nelson underscored the importance of efforts by the private sector to curb illicit cyber activities by actors such as North Korea.

"North Korean cyber criminals are actively and aggressively exploiting vulnerabilities. In particular, they seek out the non-implementation and frankly, the willful disregard" by private service providers, Nelson told the webinar.

"While we are responsible for developing the guardrails to mitigate illicit finance risks, it is truly incumbent upon the private sector to effectively implement them," he added.

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