Vietnam was the next largest victim, having lost $540m, the US following with $497m and finally Hong Kong, which suffered losses to the Diplomatic Republic of North Korea (DPRK) of $281m.

Hackers linked to the government in Pyongyang regularly target foreign adversaries looking to steal funds.

By Claudia Glover, techmonitor

North Korean hackers have stolen cryptocurrencies worth $721m from Japan in the past five years, a report revealed this week. The long history of animosity between the countries, and the close association between Japan and the US, is likely to be behind the trend, researchers say.

This figure is equal to 30% of the total of such losses worldwide, states the report. The research was carried out by UK cryptocurrency research company Elliptic on behalf of Asia Nikkei.

North Korea has stolen $721m from Japan since 2017

According to Elliptic’s findings, Japan is the worst hit by North Korea’s worldwide cryptocurrency raids, suffering $721m in thefts out of a global $2.3bn between 2017 and the end of 2022. 

Vietnam was the next largest victim, having lost $540m, the US following with $497m and finally Hong Kong, which suffered losses to the Diplomatic Republic of North Korea (DPRK) of $281m.

North Korea is well known for using cybercrime to bolster its economy. A report released by the United Nations earlier this year asserted that hackers working for the government in Pyongyang stole more assets in 2022 than in any other year, all the while targeting the networks of foreign aerospace and defence companies.

“(North Korea) used increasingly sophisticated cyber techniques both to gain access to digital networks involved in cyber finance, and to steal information of potential value, including to its weapons programmes,” independent sanctions monitors reported to a UN Security Council committee.

The report follows finance ministers and central bank governors in Japan calling for leaders of the G7 group of nations to recognise the “growing threat from illicit activities by state actors,” in response to the rise in cybercrime. The G7 meets in Japan this week.

Japan needs to boost its cyber defences

To counter the threat of neighbouring countries targeting their cryptocurrency and valuable data, Japanese companies must tighten their cyber defences.