North Korea using AI Deepfake to conduct espionage via Insider Threats

Insider threat March 19 2025

North Korea, under the leadership of Kim Jong Un, has taken a disturbing step in utilizing cutting-edge technologies to carry out espionage operations. The country has reportedly adopted Deepfake technology, powered by Artificial Intelligence (AI), as a new tool to infiltrate corporate environments and conduct espionage activities through Insider Threats.

According to a source from Daily Mail, a sophisticated and well-organized cyber espionage group called Famous Chollima has been tasked with carrying out these AI-powered deepfake attacks. The group’s primary objective is to infiltrate western companies by exploiting recruitment processes—particularly in fields like software development and cryptocurrency exchanges—where they can hide behind fabricated digital identities.

Famous Chollima and Its Ties to North Korea’s Lazarus Group

The Famous Chollima APT (Advanced Persistent Threat) is a faction of North Korea’s notorious Lazarus Group, which has been linked to numerous cyber-attacks and cybercrimes over the years. Famous Chollima, much like its parent group, is focused on stealing sensitive intelligence and proprietary data from western companies.

The modus operandi of this APT group is deceptively simple, yet highly effective. Members of the group apply for remote job positions at various organizations, particularly in sectors that handle sensitive information or digital assets. Using deepfake technology, they can mask their real identity during video interviews, posing as legitimate candidates for positions in software companies and financial institutions like cryptocurrency exchanges.

Once successfully passing the interview process, these cyber operatives gain access to the organization as legitimate employees. They are then able to infiltrate the company from within, bypassing traditional security protocols and identity checks.

The Danger of Insider Threats Powered by Deepfake Technology

Once recruited, these operatives begin their work as Insider Threats. They can access sensitive systems, steal confidential information, and transmit that data back to remote servers controlled by their handlers in North Korea. By operating from within the organization, they can bypass many of the security measures designed to protect companies from external cyberattacks, making their activities even harder to detect.

The sophistication of this approach is alarming. It highlights a significant weakness in how some organizations approach cybersecurity. Many CTOs and CIOs—particularly at smaller or mid-sized businesses (SMBs)—still operate under the misconception that their companies are not likely to attract the attention of high-level hackers or state-sponsored threat actors. This mindset can lead to complacency, making these companies vulnerable to attacks they might not anticipate.

In reality, threat actors like the Famous Chollima APT group don’t target companies based solely on their size or prominence. Instead, they scan for vulnerabilities within an organization’s IT infrastructure. Once a weakness is identified, they can gain access to the network and begin exploiting it, potentially causing long-term damage.

The Need for Rigorous Hiring Protocols and Enhanced Cybersecurity Measures

The use of deepfakes in cyber espionage underscores the importance of rigorous background checks during the recruitment process. Organizations, especially those in Web3, data centers, and other industries handling critical or sensitive data, must implement strict protocols to validate the identities of candidates before offering them positions. This includes verifying the authenticity of video interviews and leveraging additional layers of authentication to ensure that the person behind the screen is who they claim to be.

Additionally, businesses must strengthen their IT infrastructure to prevent unauthorized access. AI-powered defenses, network monitoring tools, and zero-trust security models can help to detect and block attempts to infiltrate a network before they succeed. Automated systems that flag suspicious activity or behavior from new employees can be invaluable in stopping potential insider threats before they cause significant damage.

Conclusion: The Evolving Threat Landscape

The use of AI and deepfake technology by North Korea highlights the increasingly sophisticated nature of cyber threats in today’s world. As nation-states like North Korea continue to harness new technologies for cyber-espionage, companies must remain vigilant and proactive in safeguarding their networks. Failing to take these threats seriously and underestimating the risk posed by seemingly innocuous activities—like the recruitment process—can result in severe financial and reputational damage. It is imperative that companies adopt more stringent cybersecurity practices and ensure they are prepared to defend against even the most advanced forms of cyber intrusion.

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Naveen Goud
Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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