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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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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European governments sanctioned Russian individuals and organizations Monday over what they said was a years-long campaign of cyberespionage from Turla and other Russian government-led “destructive attacks” against the bloc.

Monday’s confrontation of Moscow included action from the European Union, its individual member governments and the United Kingdom. It mostly took aim at Center 16 of Russia’s Federal Security Service (FSB) over its control of the cyber threat group known by a list of names including Turla, Secret Blizzard and Waterbug.

“Cybercriminals, self-proclaimed hacktivists and private companies linked to Russia, including actors operating under its instructions, direction or control, have also carried out, enabled and facilitated a wide range of malicious activities,” European Union High Representative Kaja Kallas said in a statement.

The EU called out Russia for the Turla campaign that dated back to 2010 in France with targeting of the government there, and has also featured activity against Germany, Poland, Cyprus, the Netherlands, Austria, Slovakia, Romania and Finland. It made special mention of blaming the FSB for last December’s attacks on Poland’s energy grid, which left half a million people without heat.

In all, the European Union sanctioned nine Russian individuals and four entities. While the EU didn’t name them, Kallas’s statement said it also included officers of Russia’s Main Intelligence Directorate of the General Staff (GRU).

The United Kingdom’s cyber sanctions, the first it’s done in coordination with the EU, featured a longer list of 24 individuals and entities. The U.K. named GRU senior leadership figures Vyacheslav Stafeyev, Ivan Senin and Ivan Kasyanenko for their alleged hybrid cyberattacks in conjunction with cybercriminals and recruitment of hackers across Russian universities. The U.K. also sanctioned individuals behind Lumma Stealer, the target of an international takedown last year.

“These sanctions strike at the core of the cybercriminal networks propping up the Russian state’s aggression, and the UK and EU are sending a clear message that Russia cannot hide behind its use of these proxy groups,” Foreign Secretary, Yvette Cooper, said in a news release that mentioned “destructive attacks” by Russia. “From directing criminals to targeting businesses, and striking Poland’s energy grid in the depths of winter, the Russian state is sinking to new lows in its attempts to undermine European security.”

At least two European governments, Germany and France, said they would be summoning Russia’s ambassadors in their nations over the attacks.

Also Monday, the European Union announced sanctions against the company behind Russia’s messaging app, Max, citing its use of surveillance features to clamp down on dissent. And separately, 13 nations including the United States issued a warning on Monday about Russian government hackers targeting routers to carry out critical infrastructure attacks.

Russia routinely denies allegations of responsibility for any malicious cyber activity.

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In 2022 and 2023, the European Parliament’s PEGA Committee investigated spyware abuses across the European Union following journalistic revelations about government deployment of NSO Group’s Pegasus technology.

Now, years later, it turns out that someone was using Pegasus spyware on one of the committee’s own. 

In a report published Friday, the University of Toronto’s Citizen Lab revealed that it found Pegasus on the phone of substitute PEGA Committee member Stelios Kouloglou, a Greek journalist and former member of the European Parliament. It’s the first time a member of the committee has been publicly identified as a Pegasus victim.

For Kouloglou, the Pegasus infection was surprising. For another PEGA Committee member, it was fully expected, if delayed. For Citizen Lab, it was ironic.

For all of them, it was further evidence that much more needs to be done to prevent spyware abuses — such as enacting the very recommendations of the PEGA Committee’s final report that never saw action in the European Parliament.

Kouloglou told CyberScoop that he had run security tests on his phone prior to joining the PEGA committee in 2022, so he didn’t think anyone would be bold enough to try to infect his phone once he became a member. With Greece’s use of Predator spyware under scrutiny, “it would be a big scandal” if he was hacked while on the panel, he said.

But someone — Citizen Lab’s investigation didn’t uncover whom — infected Kouloglou’s phone with Pegasus twice, once around October of 2022 and once around March of 2023, investigators concluded with “high confidence.”

During the first infection, the committee was preparing for some prominent hearings and the first draft of its report. Kouloglou was in the hospital and got a visit from another Greek journalist who had testified before the committee and had himself had his phone infected with spyware earlier. Given the ability of spyware to listen to audio through an infected phone, it’s possible the infection ran afoul of protections for health data.

During the second infection, the panel was preparing for yet more hearings and “was engaged in intense discussions related to the final drafting process,” according to Citizen Lab.

The Citizen Lab investigation of Kouloglou’s came about this May, after he said a lawyer he knew told him there was a way to send his phone’s data to the research organization, during a time when Kouloglou was doing some investigative reporting and writing a “scandal of the week” column. “I said, ‘Why not? Let’s do it,” he said.

Whoever was responsible for infecting Kouloglou’s phone did so during “crucial moments” of the committee’s work, said Hannah Neumann, a member of the PEGA Committee and European Parliament member from Germany.

“Many of us were expecting some hacks during the committee, but it’s still frustrating now to figure out that it really happened,” she told CyberScoop. “When we decided to set up the Pega Committee, we really worked hard with our internal European Parliament IT security…  so that they can provide spyware checks for the members of the Pega Committee and their staff.”

Kouloglou and Neumann could only speculate on who was responsible. But for the two of them, and Citizen Lab, the motive seems clear.

“It is ironic that a member of the committee charged with investigating Pegasus was himself targeted with Pegasus spyware,” Ron Deibert, founder and director of Citizen Lab. “Someone, somewhere likely wanted to breach parliamentary privilege and find out what was going on in that committee. This case shows how the still unregulated and highly abused mercenary spyware industry is poisonous to democratic processes.” 

Kouloglou said he plans to pursue legal action against NSO Group. Many spyware victims have had difficulty winning lawsuits against spyware makers, although not all.

Israel-based NSO Group did not respond to a request for comment Thursday afternoon.

Neuman said the lessons learned as a result of Kouloglou’s phone infection include, “for members of national parliament and the European Parliament: Regularly get your devices checked. Apparently they don’t respect European democracy and parliamentarism.”

Most importantly, it’s time to enact the PEGA committee’s recommendations, she said.

“I don’t know how much more it needs for member states and the commission to wake up and actually start implementing the very good recommendations of our PEGA committee, because we all know that there is a spyware abuse,” Neuman said. “I don’t need to have another committee for that. I just need them to act.”

Kouloglou almost certainly won’t be the last member of parliament to get infected, said John Scott-Railton, senior researcher at Citizen Lab. Some had been infected prior to the work of the PEGA Committee, and some have been found to be targeted since. (The United States’ legislative body has been targeted in the past as well.)

“Providing highly secretive government agencies with surveillance tools supplied by unaccountable and often unethical mercenary firms is a recipe for the abuse of power,” he told CyberScoop. “I can tell you how the next chapter will go: more hacked Parliamentarians. In fact, I suspect there are members voting and attending high level meetings with no idea that their phone has been turned into a spy in their pocket.”

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