Company Hacked After Hiring North Korean Cyber Criminal as Remote IT Worker

Published

3 months ago

October 16, 2024

RTX

A company has fallen victim to a cyber attack after inadvertently hiring a North Korean hacker as a remote IT contractor. The unidentified firm, which operates in the UK, US, or Australia, was targeted after the technician falsified his employment history and personal details to secure the position.

The incident highlights growing concerns over the infiltration of Western companies by North Korean cybercriminals, with experts noting a rise in such cases in recent years. The company allowed cybersecurity responders from Secureworks to disclose the breach in a bid to raise awareness among other organizations.

The technician, believed to be a man, was contracted during the summer and quickly gained access to the company’s computer network using remote working tools. Once inside, he downloaded sensitive data before issuing a ransom demand to the firm. After working for four months and receiving a salary, the contractor was terminated due to poor performance. It is suspected that his earnings were funneled back to North Korea through complex laundering schemes designed to evade Western sanctions.

Following his dismissal, the firm received ransom emails containing some of the stolen data along with a demand for a six-figure payment in cryptocurrency. The hacker threatened to publish or sell the stolen information online if the ransom was not paid. The company has not disclosed whether it complied with the ransom demand.

This incident is part of a disturbing trend, as authorities and cybersecurity experts have warned of an increasing number of covert North Korean workers infiltrating Western firms. The US and South Korea allege that North Korea has tasked thousands of individuals to take on high-paying remote jobs to generate revenue for the regime and circumvent international sanctions.

In September, cybersecurity firm Mandiant reported that dozens of Fortune 100 companies had unknowingly hired North Koreans. Rafe Pilling, Director of Threat Intelligence at Secureworks, described this incident as a “serious escalation of the risk” posed by fraudulent North Korean IT workers. “No longer are they just after a steady paycheck; they are looking for higher sums, more quickly, through data theft and extortion from inside the company defenses,” he noted.

This incident follows another case in July when a North Korean IT worker attempted to hack their employer, cybersecurity firm KnowBe4. The company quickly disabled the worker’s access after detecting suspicious behavior, highlighting the importance of vigilance in hiring practices.

Authorities are urging employers to exercise caution when onboarding new hires, especially those in fully remote positions, to safeguard against potential cyber threats. The incident serves as a stark reminder of the risks associated with remote work and the need for thorough vetting processes.

Business

Eurozone Inflation Rises to 2.4% in December, Markets Still Expect ECB Rate Cuts in 2025

Published

6 hours ago

January 7, 2025

RTX

Inflation in the eurozone rose to 2.4% year-on-year in December, up from 2.2% in November, according to preliminary data from Eurostat. While the increase matched economists’ forecasts, it highlighted ongoing inflationary pressures in the region, complicating efforts by the European Central Bank (ECB) to meet its 2% target.

On a monthly basis, consumer prices rose by 0.4%, reversing the 0.3% decline seen in November. Core inflation, which excludes volatile items like food and energy, remained steady at 2.7%, in line with expectations. Despite the stable core inflation, the persistent inflationary challenges are expected to keep the ECB focused on further action.

Among the key contributors to inflation, services remained the leading category, with an annual rate of 4%, slightly up from 3.9% in November. Food, alcohol, and tobacco prices stayed steady at 2.7%, while non-energy industrial goods saw a slight decrease in inflation, easing to 0.5% from 0.6%. Energy prices rebounded significantly, rising 0.1% year-on-year after a -2% drop in November, reflecting higher fuel costs in some eurozone countries.

Kyle Chapman, an analyst at Ballinger Group, suggested that the inflation rise was unlikely to alter the ECB’s course. “This figure does close to nothing in terms of altering the path for the ECB,” Chapman said. He noted that Frankfurt had been anticipating a temporary rise in inflation and is likely to overlook it for now.

Regional Variations in Inflation

Inflation rates varied widely across eurozone countries. Croatia led with the highest annual rate at 4.5%, followed by Belgium at 4.4%. Other significant readings included Germany at 2.8%, Greece at 2.9%, and Spain at 2.8%. In Belgium and Germany, monthly inflation rose by 0.7%, the second-highest across member states.

Ireland recorded the lowest annual inflation rate at 1%, but saw a notable monthly spike of 0.9%. In contrast, Italy, with one of the lowest annual rates at 1.4%, had only a 0.1% monthly rise. France’s inflation increased to 1.8%, the highest since August, while Spain saw a 2.8% inflation rate, the highest since July 2024.

Market Reactions

Despite the inflation data aligning with expectations, financial markets reacted mildly. Shorter-dated eurozone bond yields, which had spiked following Germany’s surprise inflation report on Monday, edged lower. The two-year Schatz yield fell 3 basis points to 2.18%, while the benchmark 10-year Bund yield held steady at 2.45%.

The euro continued its upward trend, rising 0.4% to $1.0430, as market expectations remain focused on future ECB rate cuts. Traders are anticipating a 25 basis-point cut at the ECB’s meeting on January 30, with over 100 basis points of cumulative cuts expected throughout 2025.

European equity indices traded slightly higher, with the Euro STOXX 50 and STOXX 600 up 0.2%. Germany’s DAX also gained 0.2%, while France’s CAC 40 outperformed, rising 0.4%. Italy’s FTSE MIB lagged, slipping 0.1%.

Sector-wise, luxury and consumer goods stocks outperformed, with Adidas rising 2.2%, while banks underperformed, with the Euro STOXX Banks Index down 1.1%. Notable declines were seen in Deutsche Bank, which fell 1.6%, and Ireland’s AIB Group, which dropped 1.8%.

Business

Italy in Talks for €1.5bn Deal with SpaceX Amid Local Opposition

Published

1 day ago

January 6, 2025

RTX

The Italian government is advancing negotiations for a €1.5 billion telecommunications security services contract with SpaceX, according to reports. The proposed deal, which includes encryption services for telephone and internet communications for Italy’s government and military, has been under review since mid-2023 but has faced opposition from local telecommunications providers.

The potential five-year agreement follows a visit by Italian Prime Minister Giorgia Meloni to President-elect Donald Trump in Florida, sparking speculation that Musk’s support for Trump may help expedite the deal. The Italian Intelligence Services and Defence Ministry are reported to have approved the project, which would enhance the security of critical communications across the country.

SpaceX’s services could include encrypted communication solutions for the Italian government and military, designed to enhance national security. However, the deal has faced significant resistance from local telecommunication operators, who argue that SpaceX’s business model could undermine the domestic market.

In November 2023, the lobbying group Assetel called for a review of regulations governing low-orbit satellite broadband services, particularly in regard to SpaceX’s Starlink network. The group raised concerns that SpaceX’s direct-to-consumer sales approach bypasses existing regulations, potentially circumventing rules on data storage and creating unfair competition with local telecom companies.

Italian telecom operators have been struggling with mounting debts and intense price competition. Telecom Italia reported €8 billion in net debt for the third quarter of 2023, despite selling its network to US private equity firm KKR in a €22 billion government-backed deal. Meanwhile, Swisscom’s acquisition of Vodafone Italia in December, for €8 billion, was another sign of financial strain in the Italian telecom sector.

Italy is also facing pressure to meet its broadband network expansion targets under the EU-funded Recovery and Resilience Facility (RRF). Despite receiving €113.5 billion in recovery funds, Italy is behind schedule in rolling out high-speed internet, a key part of its economic revitalization plan. Only a third of the 3.4 million buildings targeted by the €3.4 billion plan have been connected to broadband, leading the government to consider using Starlink to make up for delays.

SpaceX, which has expanded its global footprint significantly, has launched over 6,700 active satellites, serving more than four million customers across 100 countries. Starlink’s services have reached approximately 55,000 customers in Italy, and with new satellites launched in December 2024, SpaceX aims to broaden its global coverage even further.

The negotiations between SpaceX and Italy continue amid local opposition and challenges in Italy’s broadband expansion efforts, with the final decision expected to have far-reaching implications for both domestic telecommunications and international relations.

Business

Nippon Steel and US Steel Sue US Government Over Blocked Takeover

Published

1 day ago

January 6, 2025

RTX

Nippon Steel and US Steel have filed a lawsuit against the US government, alleging political interference in President Joe Biden’s decision to block Nippon Steel’s $14.9 billion takeover of US Steel. The companies claim Biden “ignored the rule of law” to curry favor with trade unions and advance his political agenda.

The lawsuit comes after Biden rejected the deal on Friday, citing national security concerns and the need for a strong, domestically-owned steel industry to support critical supply chains, including those for the automotive and defense sectors. Biden argued that allowing the acquisition would undermine US interests despite its potential to bolster Nippon Steel’s competitiveness against China’s steel dominance, which accounts for 60% of global production.

Political Context and Allegations

The proposed takeover, first announced in December 2023, had been in limbo for months. Biden’s decision to block the deal aligns with a campaign promise to protect domestic industries, particularly in Pennsylvania, a key swing state where US Steel is headquartered.

Nippon Steel and US Steel have requested a court-ordered review of the purchase, accusing the Committee on Foreign Investment in the US (CFIUS) of failing to conduct a “good faith, national security-focused regulatory review.” The companies also filed lawsuits against United Steelworkers President David McCall and Cleveland-Cliffs CEO Lourenco Goncalves, alleging “illegal and coordinated actions” to obstruct the deal.

McCall, who supported a $7.3 billion acquisition bid from Cleveland-Cliffs in mid-2023, defended Biden’s decision, stating it safeguarded national security and protected the domestic steel industry.

Japanese Concerns

The move has drawn criticism from Japan. Prime Minister Shigeru Ishiba expressed concerns about the decision’s potential impact on trade relations between the two G7 allies. “We must insist on an explanation as to why there are security concerns; otherwise, there will be no progress in future discussions,” Ishiba said on Monday.

Nippon Steel has reiterated its commitment to investing $2.7 billion in US Steel and emphasized that the acquisition would strengthen the US steel industry, particularly against competition from China.

Future Uncertainty

The lawsuit’s outcome could hinge on the next administration, but prospects remain uncertain. President-elect Donald Trump has also vowed to block the deal, arguing it would undervalue US Steel amid plans for sweeping tariffs on foreign imports.

“Why sell US Steel now when tariffs will make it a much more profitable and valuable company?” Trump wrote on Truth Social, referencing his plans to reintroduce protectionist measures similar to those from his first term.

Economic analyses of Trump’s 2018 tariffs indicate mixed outcomes: modest job gains at steel manufacturers but job losses in other sectors affected by higher steel costs.

The legal battle underscores the tensions between economic nationalism and global trade relations, leaving the fate of the acquisition—and its broader implications for US-Japan ties—in limbo.