North Korea and Iran: Accomplices in Cybercrime

Introduction

Welcome to the third instalment of our "Cyberwarfare and Global Stability" series. In Part 1, we dissected Russia's aggressive cyber tactics, from Triton malware to its Ukraine playbook. Part 2 explored China's espionage-driven strategy, undermining Western capabilities while eyeing military expansion by 2030.

Now, we turn to North Korea and Iran—smaller players with outsized cyber impact. These nations leverage digital warfare to destabilize economies, project power, and amplify threats through alliances with Russia and China. Here's how they're reshaping the global security landscape.

State-Sponsored Theft and Fraud

State-sponsored cyber theft and fraud mark a new frontier in warfare, where nations turn to digital means to achieve strategic ends. Facing economic pressures or geopolitical isolation, governments increasingly back these operations to blur the lines between crime and national strategy.

• Strategic Shift: Unlike rogue hackers, state actors align cybercrime with broader objectives—funding regimes, disrupting adversaries, or gaining leverage.
• Resource Edge: Backed by national resources, these efforts wield sophisticated tools, escalating their threat.

This trend sets the stage for North Korea and Iran's distinct yet interconnected roles in the cyber arena.

North Korea's Financial Cyber Operations

North Korea's cyber strategy is a lifeline for its isolated regime, funding nuclear programs and daily operations through state-sponsored theft. Here's how they do it:

• High-Stakes Heists: The 2016 Bangladesh Bank attack, linked to the Lazarus Group, stole $81 million through the SWIFT network—a bold heist that sanctions can't stop (ISACA).
• Crypto Predation: Over $2 billion in cryptocurrency has been nabbed through exchange hacks, exploiting blockchain's anonymity with persistent, advanced campaigns.
• Global Disruptions: In 2017, WannaCry ransomware affected over 200,000 systems in 150 countries, impacting hospitals, businesses, and international financial systems. (NHS England).
• National Security Weapon: These operations don't just fill Kim Jong Un's coffers—they prove cybercrime can escalate into a persistent global threat.

Pyongyang's focus on financial gain showcases its outsized cyber reach.

Iran's Hybrid Cyber and Physical Strategies

Iran pairs cyber strikes with physical actions, turning digital tools into geopolitical leverage under the Revolutionary Guard's direction. Key elements include:

• Critical Hits: The 2012 Shamoon attack on Saudi Aramco disrupted the global energy giant by wiping 35,000 computers, targeting critical industries and causing chaos (CFR).
• Ukraine Proxy Role: Iranian drones with Russian forces in Ukraine complement cyberattacks, merging kinetic and digital warfare—a hybrid model from sanctions pressure (Iran Internation).
• Post-Stuxnet Evolution: After 2010's setback, Iran built a top-tier cyber force, hitting Israeli infrastructure in 2022 and Western firms with phishing, showcasing advanced capabilities.
• Real-World Tensions: These actions blur espionage, warfare, and crime, risking escalation into broader conflicts.

Tehran's hybrid approach amplifies its regional influence, making it a wildcard in stability debates.

Collaboration with Russia and China

North Korea and Iran don't operate alone—they're part of a cyber alliance with Russia and China, magnifying their threat. Here's the breakdown:

• Tech Sharing: North Korea's missile tech reaches Iran; Iranian drones aid Russia in Ukraine—cyber tools like Kimsuky and SnailResin malware show similar exchanges.
• Tactical Overlap: Shared hacking techniques complicate attribution, delaying global responses as investigators untangle the web.
• Collective Impact: This "axis of upheaval" erodes trust in digital infrastructure—banks, utilities, and governments—pushing stability to the brink.

Together, they form a networked challenge requiring unified action.

Conclusion

North Korea and Iran may lack a superpower scale. Still, their cyber prowess—financial heists from Pyongyang, hybrid warfare from Tehran, and a boost from Moscow and Beijing—makes them serious disruptors. For cybersecurity pros, policymakers, and leaders, this demands stronger defences and global cooperation.

What's your take? How can we outpace this cyber alliance? Share below—I'd love your insights.

Further Reading

• Architecting Zero-Trust Systems: A Guide to Web Cybersecurity | LinkedIn
• North Korea's Cyber Strategy: An Initial Analysis | Observer Research Foundation
• Iranian Hackers Now Leveraging NK's 'Dream Job' Campaign | Field Effect
• Two Axes Converging In Iran | Washington Institute

#CyberSecurity #NorthKorea #Iran #CyberThreats #GlobalStability #TechPolicy #Cybercrime