Virtual Currency Casting Shadows 2011 North Korean Cyber Hackers' Game Fraud Case

Virtual Currency Casting Shadows 2011 North Korean Cyber Hackers' Game Fraud Case

In 2011, South Korean police uncovered a massive online gaming fraud case involving North Korean hackers. In this case, North Korean technicians were based in China and attempted to gain unauthorized access to South Korean online gaming sites. They used bot programs to automatically manipulate the games, pretending to be players to obtain large amounts of virtual items and in-game currency.

The results were cashed in through a cash trading site for game items, and it is reported that the proceeds reached 6 million dollars, or about 470 million Japanese yen, in about 18 months. This act went beyond mere cracking and personal crimes, and was closely tied to the IT strategy of the North Korean state.

The North Korean hackers involved in the scam belonged to a state institution called the Korean Computer Center and had technologically advanced knowledge and equipment. Their activities were supported by South Korean and Chinese collaborators, and the incident exposed the existence of an international cybercrime network spanning the three countries.

The Korean police uncovered part of this network. A total of 14 people were arrested, five of whom were arrested and nine were indicted at home. It is believed that the background to these crimes was North Korea's focus on the virtual economy and digital fraud as a new means of obtaining foreign currency amid sanctions and economic blockades.

This incident has brought home to society the fact that items and currencies in virtual space can be linked to real funds. At the same time, it heralded the arrival of an era in which state-sponsored cyberattacks would extend beyond mere military and political affairs to economic activities and the gaming space.

Related Information

- The Guardian (UK): August 4, 2011, reported on the South Korean game scam by North Korean hackers.
- Finextra Research: On August 8, 2011, detailed the South Korean police investigation into the online game scam.
- The Hacker News: On August 15, 2011, 30 North Korean hackers reportedly obtained millions of dollars worth of fraudulent points.

These reports made the world aware of the structure and methods of state-sponsored cybercrime. The gaming world is no longer just a playground, but also a battlefield of information warfare.