The US, Japan, Germany and Australia have published a joint report detailing the scope of North Korea’s WaterPlum campaign.

The post Japan Dismantles First North Korean Laptop Farm as US and Allies Detail Wider Scheme appeared first on SecurityWeek.

North Korean hackers are infiltrating tens of thousands of job seekers’ computer networks by posing as prospective employers, such as artificial intelligence firms, to steal sensitive information and millions of dollars worth of cryptocurrency, U.S. and allied governments warned Friday.

The security agencies behind the alert, attributed the group, known as WaterPlum or Contagious Interview, as operating under the 313 General Bureau of the Munitions Industry Department subordinate to the Central Committee of the Workers Party of Korea. The efforts dovetail with those of North Korean IT workers.

“WaterPlum actors pose as prospective employers to target software developers and IT professionals worldwide under the pretext of attractive job opportunities,” the agencies wrote. “They often impersonate legitimate Artificial Intelligence (AI), cryptocurrency, or Non-Fungible Token (NFT) companies and have also used recruiting services.”

Additionally, “Some WaterPlum actors also operate as North Korean IT workers performing web system design and development tasks on corporate web systems for clients,” read the alert from agencies in Japan, Australia and Germany, alongside the FBI and the Department of Defense’s Cyber Crime Center.

They’ve used the stolen information to fuel other operations, and the overlap between WaterPlum and North Korean IT workers is substantial, the agencies said.

“WaterPlum actors and North Korean IT Workers used the same IP addresses when accessing laptop farms, using cloud-sourcing services, and applying for positions at the Japanese cryptocurrency exchange,” they wrote.

Collectively, WaterPlum has infected more than 30,000 devices in more than 100 countries, targeting IT professionals in Japan, the United States, Europe and other nations. Its operations have transferred the equivalent of nearly $11 million of cryptocurrency from over 7,000 crypto wallets to North Korea, according to the alert.

The law enforcement agencies said they have had some success tackling the group, but are seeking further cooperation and released details in the alert about WaterPlum’s tactics, techniques and procedures.

“For the first time in Japan, authorities successfully identified, investigated, and dismantled a ‘laptop farm’ operated by an enabler in Japan,” the alert reads. “Japanese authorities obtained evidence this cyber actor group transferred several hundred million Japanese yen in cryptocurrency to foreign locations outside of Japan. The FBI continues to identify and prosecute US-based actors providing illicit facilitation services to North Korean IT workers.”

The warning comes as the Multilateral Sanctions Monitoring Team, an international panel overseeing UN sanctions against North Korea, released a report exposing thousands of North Korean nationals employed in industries around the world.

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Hackers exploited a vulnerability in a VPN product to steal the personal information of roughly 240,000 people.

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A cybersecurity working group at the G7 is urging governments to accelerate defenses against quantum computers that could break some existing forms of public key encryption.

The working group’s report, prepared in June at the G7 Summit in France, said organizations “can no longer afford to postpone” work transitioning critical systems and data to “post-quantum” forms of encryption.

“The quantum threat remains off the radar for many organizations and not properly resourced, with other security concerns taking precedence,” the working group report said. “Yet, a successful and collective transition to PQC can only be achieved if organizations understand that the quantum threat is an economic and business risk, and not merely a cryptographic risk.”

Instead, leaders in government and industry “must reframe the quantum threat from a distant future problem to a near-term threat that demands action across all sectors, not just critical infrastructure.”

The report acknowledged uncertain timelines for quantum computers, but identified that threats like harvesting current sensitive, encrypted data to decrypt it in the future do exist today.

The report also warned that quantum computers could compromise authentication and assurance mechanisms—by forging trusted data or stealing confirmation— jeopardizing secure communications and legal contracts.

The working group’s conclusions are largely in line with what governments have been recommending for years, urging industry to inventory and prioritize their critical systems and shift over to newer, “post-quantum cryptography” encryption algorithms.

These encryption algorithms, originally designed by independent cryptographers and vetted by the National Institute for Standards and Technology and National Security Agency, will be used to protect the government’s own systems and data from cybercriminals and foreign governments.

The Trump administration recently issued an executive order directing agencies to boost the domestic quantum industry and move up internal timelines for migrating to PQC encryption from 2035 to 2030. Google, a potential industry bellwether, and other companies have opted to move their own migration timelines to 2029.

But while that work has proceeded on schedule in some areas, like the federal government and the highly regulated financial sector, it has lagged in other industries where owners and operators feel they have more immediate concerns than quantum computers.

“We acknowledge that transitioning to PQC is not a problem for individual organizations to solve in isolation, but rather a collective transition that can only be achieved with early engagement, coordinated planning and informed decision making across the public and private sectors,” the working group wrote.

While often referred to as “Post-Quantum” encryption, the reality is more complex. Cryptographers believe the algorithms selected by NIST and NSA will stand up to attacks from a quantum computer, but since one doesn’t exist today, designing cryptographic protections against it requires some guesswork and mathematical estimation.

Estimates can be wrong, or overlook the entire cryptographic attack surface. Some NIST-selected algorithms have already been broken with traditional computers or AI. That’s why the agency backs multiple algorithms and concepts like “crypto-agility,” allowing organizations to quickly switch between them.

The G7 report was signed by the U.S. Cybersecurity and Infrastructure Security Agency (CISA), the UK’s National Cyber Security Centre (NCSC), The French Cybersecurity Agency (ANSSI), Germany’s Federal Office of Information Security (BSI), Canada’s Communications Security Establishment (CSE), Japan’s National Cybersecurity Office (NCO) and Italy’s National Cybersecurity Agency (ACN).

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Japan is preparing a nonbinding "comply or explain" code that would urge generative AI companies, including foreign firms operating in Japan, to disclose what models they use, what training data they rely on, and how that data was collected. The proposal would also let rights holders ask whether specific webpages were included in training datasets. The Japan Times reports: The draft code comprises three principles. The first principle requires businesses to disclose the generative AI models they use, their training data and methods for collecting such data on their websites and make the information publicly accessible. Meanwhile, disclosure of sensitive information will not be mandatory. The second principle calls for businesses to disclose whether certain webpages are included in training data when requested by copyright holders and other rights holders who allege infringement. The third principle states that businesses will respond to requests for information from system and service users concerned about copyright infringement.

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At a Hiroshima memorial ceremony, Japan's prime minister said the country "maintains" its three long-standing non-nuclear principles, reports UPI. But the prime minister "stopped short of promising that the policy would remain unchanged, fueling speculation that her government could review a longstanding ban on allowing nuclear weapons into the country." [Prime Minister Sanae] Takaichi made the remarks Thursday at the Hiroshima Peace Memorial Ceremony marking the 81st anniversary of the U.S. atomic bombing of the city... Unlike previous prime ministers who pledged that Japan would "continue to uphold" the principles, Takaichi described the government's current position without making an explicit commitment about the future [only saying that Japan has "a mission to continue efforts toward realizing a world without nuclear weapon..."] The wording has drawn attention because her government plans to revise Japan's three key national security documents by the end of the year. At a news conference after the ceremony, Takaichi again said the government "maintains the Three Non-Nuclear Principles as a matter of policy." Asked whether the principles would continue to be included in the revised security documents, however, she declined to commit, saying she would refrain from prejudging the outcome. Japan's Three Non-Nuclear Principles state that the country will not possess nuclear weapons, will not produce them and will not permit their introduction into Japanese territory. The principles originated with a 1967 statement by then-Prime Minister Eisaku Sato and have remained a central element of Japan's postwar nuclear policy. Takaichi has previously questioned the third principle — the prohibition on allowing nuclear weapons into Japan. Before becoming prime minister, she argued in a 2024 book that Japan should retain the commitments not to possess or produce nuclear weapons but that an absolute prohibition on their introduction was unrealistic. Her argument was that barring port calls by U.S. vessels carrying nuclear weapons could limit the effectiveness of the U.S. nuclear umbrella protecting Japan... The Japan Innovation Party has also called for a review of the third principle. In security policy recommendations submitted to the government in June, the party called for a "realistic review" of the ban on allowing nuclear weapons into Japan... Under existing government interpretations, Japan could respond flexibly in an extreme national emergency involving a U.S. vessel carrying nuclear weapons. Some within the ruling party therefore question whether formally revising the non-nuclear principles would provide enough practical benefit to justify the political controversy it would create. Critics also warn that changing the policy when Washington has not publicly demanded such a move could give China and North Korea additional grounds to portray Japan as expanding its military role... If Japan were to allow temporary entry by U.S. nuclear weapons or port calls by nuclear-armed vessels, Washington would gain additional operational options for its nuclear forces in Northeast Asia. Such a development could strengthen deterrence against North Korea and China but could also intensify debate over differences between U.S. extended deterrence arrangements with Japan and South Korea. "How the principles are addressed in Japan's revised security documents later this year could determine whether the issue develops into a broader debate over the future of extended nuclear deterrence among Japan, South Korea and the United States..."

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