North Korean charged in crippling Sony hack, WannaCry virus

First Assistant US Attorney Tracy Wilkison announces charges against a North Korean national in a range of cyberattacks on September 6, 2018 in Los Angeles, California. (Mario Tama/Getty Images/AFP)
Updated 07 September 2018
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North Korean charged in crippling Sony hack, WannaCry virus

LOS ANGELES: A computer programmer working for the North Korean government was charged with devastating cyberattacks on Sony Pictures Entertainment and for the WannaCry ransomware virus that infected computers in 150 countries and crippled parts of the British health care system, federal prosecutors said Thursday.
Park Jin Hyok, who is believed to be in North Korea, conspired to conduct a series of attacks that also stole $81 million from a bank in Bangladesh, according to charges unsealed in Los Angeles federal court following years of investigation. The US believes he was working for a North Korean-sponsored hacking organization.
The US government previously said North Korea was responsible for the 2014 Sony hack that led to the release of a trove of sensitive personal information about employees, including Social Security numbers, financial records, salary information, as well as embarrassing emails among top executives. The hack included four yet-to-be released Sony films, among them “Annie,” and one that was in theaters, the Brad Pitt film “Fury,” and cost the company tens of millions of dollars.
The FBI had long suspected North Korea was also behind last year’s WannaCry cyberattack, which used malware to scramble data on hundreds of thousands of computers at hospitals, factories, government agencies, banks and other businesses across the globe.
“The criminal conduct outlined in this case is intolerable,” said Tracy Wilkison, the first assistant US attorney in Los Angeles. “The North Korean-backed conspiracy attempted to crush freedom of speech in the US and the UK It robbed banks around the world. And it created indiscriminate malware that paralyzed computers and disrupted the delivery of medical care.”
The charges were filed under seal June 8, four days before President Trump’s historic meeting with North Korea’s leader, Kim Jong Un, to discuss ending decades of hostility between the two countries. Prosecutors said the complaint was sealed for a variety of reasons and wasn’t done to prevent derailing the Singapore talks.
“This has nothing to do with the summit and nothing to do with denuclearization,” Wilkison said.
US officials believe the Sony hack was retribution for “The Interview,” a comedy starring Seth Rogen and James Franco in a plot to assassinate Kim. Sony canceled the theatrical release of the film amid threats to moviegoers but released it online through YouTube and other sites.
A Sony spokeswoman declined comment Thursday. Attempts by The Associated Press to reach the alleged hacker were not immediately successful. Two Gmail addresses identified in the FBI in the complaint were listed as disabled.
Among the emails released in the hack was an exchange in which Amy Pascal, then co-chairman of the studio, and “The Social Network” producer Scott Rudin joked about what might be then-President Barack Obama’s favorite movies, listing “12 Years a Slave” and films by black comedian Kevin Hart.
The pair apologized. Pascal left her job months later.
In addition to targeting Sony, hackers sent spear-phishing emails to employees at AMC Theaters, which had planned to screen the movie, and to a British company producing a fictional television series about a scientist taken prisoner in North Korea, authorities said.
The hackers used the same aliases and accounts from the Sony attack when they sent spear-phishing emails to several US defense contractors, including Lockheed Martin, and others in South Korea, officials said.
The criminal complaint says the hackers committed several attacks from 2014 into 2018, attempting to steal more than $1 billion from banks around the world. The investigation is continuing.
The hackers also targeted technology and virtual currency industries, as well as academia and electric utilities, authorities said.
“This case warrants attention whether you are an individual, a small business or a major corporation,” FBI Special Agent Jennifer Boone said. “Terms you’ll see in the complaint, such as watering holes and back doors, don’t sound menacing, but in reality they describe malicious cyber techniques that wreak havoc on our computer systems and our lives.”
Cybersecurity experts have said portions of the WannaCry program used the same code as malware previously distributed by the hacker collective known as the Lazarus Group, which is believed to be responsible for the Sony hack.
The complaint said Park was on a team of programmers employed an organization called Chosun Expo that operated out of Dalian, China, and that the FBI described as “a government front company.”
A North Korea-registered website bearing that company’s name described it as the country’s “first Internet company,” established in 2002.
A 2015 version of the Chosun Expo website said it focused on gaming, gambling, e-payments and image recognition software. It looked in many ways like a typical tech company, boasting of its “pioneering” IT talent and customer satisfaction. By July 2016, Internet archival records show, the company dropped the reference to North Korea from its home page. The site later vanished from the web.
Emails sent to Chosun Expo’s generic email address and to the website’s original registrant, whose name was given as Won Sun Chol, went unreturned.
It is the first time the Justice Department has brought criminal charges against a hacker said to be from North Korea. In recent years the department has charged hackers from China, Iran and Russia in hopes of publicly shaming other countries for sponsoring cyberattacks on US corporations.
In 2014, for instance, the Obama administration charged five Chinese military hackers with a series of digital break-ins at American companies, and last year, the Justice Department charged Russian hackers with an intrusion at Yahoo Inc.
The Treasury Department also added Park Jin Hyok’s name to their sanction list, which prohibits banks that do business in the US from providing accounts to him or Chosun Expo.
Park, whose age is not known, is charged with two counts alleging conspiracies to commit computer and wire fraud — crimes that could carry a prison term up to 25 years.
It’s unlikely he will be extradited because the US has no formal relations with North Korea.
The North Korean government was not notified about the charges, which are likely to be a source of irritation.
Diplomatic efforts have sputtered since the June summit, though Kim said through South Korean security officials Thursday that he still has faith Trump is committed to ending hostile relations.
Trump thanked Kim on Twitter and said, “We will get it done together!“


Samsung announces folding phone with 5G — at nearly $2,000

Updated 21 February 2019
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Samsung announces folding phone with 5G — at nearly $2,000

  • The device looks similar to a conventional smartphone, but then opens like a book to reveal a display the size of a small tablet
  • Samsung is also making improvements to its flagship Galaxy S devices and plans to offer a 4G version of its folding phone
SAN FRANCISCO/LONDON: Samsung Electronics Co. Ltd. on Wednesday unveiled a nearly $2,000 folding smartphone in a bid to top the technology of Apple Inc. and Chinese rivals and reignite consumer interest amid slumping sales.
The Galaxy Fold will go on sale on April 26 and take advantage of new and faster 5G mobile networks. The device looks similar to a conventional smartphone, but then opens like a book to reveal a display the size of a small tablet at 7.3 inches (18.5 cm).
The device “answers skeptics who said that everything that could be done has been done,” DJ Koh, chief executive of Samsung Electronics, said at an event in San Francisco. “We are here to prove them wrong.”
Samsung remains the world’s largest smartphone maker with nearly a fifth of global unit sales but underperformed a slumping market last year. Chinese rival Huawei Technologies Co. Ltd. — whose Mate series of phones also command premium prices — gained market share. Other Chinese makers like Xiaomi Corp. have also been increasing prices, leaving Samsung to defend its turf against upstart rivals in addition to its longtime foe Apple.
With the foldable phone, Samsung is going on the offense on two fronts in the smartphone race: It is offering an eye-catching new feature with the big, bending screen and the first 5G connection in a premium phone, a feature analysts do not expect Apple to match until 2020.
Samsung is also making improvements to its flagship Galaxy S devices and plans to offer a 4G version of its folding phone.
It also challenges the notion of what a phone can cost, debuting at nearly twice the price of current top-of-the-line models from Apple and Samsung itself.
Patrick Moorhead, founder of Moor Insights & Strategy, said the new folding device could help Samsung stay at the top and lure consumers to upgrade devices that have looked largely the same over the past five years.
“Samsung and Apple go back and forth” to lead the premium smartphone market, Moorhead said. “I think this is Samsung’s chance to take back the innovation crown.”
And even though the $1,980 starting price is steep, some dedicated Samsung fans said they would pay it. Navneet Kumar Singh, a Samsung enthusiast from India who traveled to San Francisco to watch the launch, is ready to place his order.
“The prices of the flagship models have been a little aggressive in India,” he said, “But in the end, if you invest the money you’re getting a different experience.”
Samsung also introduced several accessories to compete against Apple, including a pair of wireless headphones called Galaxy Buds. The headphones include wireless charging, a feature that Apple has promised to put into is competing AirPods but has not yet released.
Samsung also said that its new Galaxy phones will be able to wirelessly charge its headphones and new smartwatches by setting the accessories on the back of the phone.

10 times faster
Along with the folding phone, Samsung also added new cameras and a 5G version to its Galaxy series of phones.
Verizon Communications Inc. will be the first carrier to offer service for Samsung’s 5G phones. The networks are expected to be 10 times faster than current ones, improving viewing of live news and sports events.
With the 5G versions of its flagships, the Korean electronics maker looks to have beaten Chinese rivals in the 5G race, although the device will operate only on the small number of networks launching later this year. Apple is not expected to release a 5G smartphone until late 2020.
The new networks are not available in many places yet but will roll out this year and next. Consumers who want to hold on to their phones for several years before upgrading may be tempted to buy a 5G phone now so that it will be able to take advantage of those networks later, said Bob O’Donnell of TECHnalysis Research. That could sway some Apple buyers over to Samsung and other Android makers with 5G devices.
“People are going to be thinking about, am going to be able to use this a year from now? Two years from now? Three years?” he said.
Rival smartphone makers are expected to announce 5G models at next week’s Mobile World Congress, the industry’s top annual event, in Spain. Samsung said its 5G handset would be available in the early summer.
The Galaxy 10 series needs to appeal to consumers who are reluctant to upgrade for only incremental technological improvements in performance.
All of the Galaxy series of rigid phones except the 5G will be available from March 8, with the S10+ priced from $1,000, the S10 priced from $900 and the smaller S10e from $750.
The mainline S10 compares with $999 for Apple’s iPhone XS and $858 for Huawei’s premium Mate 20 Pro.