Hackers from North Korea are increasingly infiltrating the cryptocurrency sector with a barrage of seemingly legitimate job offers, raising concerns about the security of digital assets. As reported by Reuters on September 4, these tactics are part of a broader strategy aimed at scamming individuals within the crypto industry, prompting many job seekers to take extra precautions when engaging with recruiters.
Carlos Yanez, a business development executive at the blockchain analytics firm Global Ledger, shared his alarming experience of being targeted. He highlighted the prevalence of such incidents within the field, noting, “It happens to me all the time and I’m sure it happens to everybody in this space.” Yanez managed to avoid falling victim to the scam but expressed concern over the sophistication of North Korean hackers, particularly in the last year.
While there’s no precise figure for the money lost through these specific scams, blockchain intelligence firm Chainalysis reported that North Korean hackers were involved in the theft of at least $1.34 billion worth of cryptocurrencies in 2024. This statistic underscores the significant threat posed by North Korean cybercriminals to the crypto community.
The FBI has previously issued warnings about the use of social engineering tactics by North Korea to target individuals in the cryptocurrency sector. However, Reuters’ recent investigation sheds light on the intricate methods employed to execute these scams. The process typically begins with hackers reaching out through platforms like LinkedIn or Telegram, where they pitch alluring employment opportunities related to blockchain technology. Following initial communications, these “recruiters” guide potential candidates to fraudulent websites where applicants are asked to perform a skills test and submit video messages.
One individual who complied with this request reported discovering over $1,000 missing from his crypto wallet by the end of the day. Nick Percoco, the chief security officer at Kraken, noted that such recruiting scams have surged over the past year and highlighted the challenges that companies face in identifying impersonators. “Anybody out there can say they’re a recruiter,” Percoco remarked, amplifying the need for vigilance in the industry.
This surge in North Korean hacking activities coincides with a broader rise in social engineering fraud, which saw a staggering 56% increase year over year as of late 2024, according to research from PYMNTS Intelligence. The evolving landscape of cryptocurrency remains fraught with dangers, as echoed in PYMNTS’ July report that traced the history of crypto scams back to 2010. The report emphasized that businesses prepared to learn from past experiences in governance, transparency, and ethical practices will be better equipped to face the next challenges in digital innovation.
