In 2022 Microsoft reported a 20% increase in nation-state cyber attacks on critical infrastructure. They cited Russia’s cyber attacks on Ukraine as the primary factor. Another study revealed that 86% of businesses claim to have been victims of nation-state cyber attacks. Although most of these agencies are state-owned, private organizations are also at risk.
The warfare landscape is shifting from nuclear warfare to cyber warfare. Waring nations commission cyber attacks in collaboration with the Advanced Persistent Threat (APT) group. The APT is a group of expert hackers, cybercriminals for hire, who share specific state-related sentiments. These groups have government support and unlimited access to dark web facilities and often leave no traceable digital footprint behind.
In light of the rise in Cyber-warfare, companies must protect themselves by enabling threat response services and structuring long-lasting preventive mechanisms.
This article analyzes nation-state threat actors’ demographics, motivation, and the industry most hit by these attacks. You will also learn how to protect your company against these attacks in 2023.
What are Nation-state Cyber Threat Actors?
Nation-state actors are expert cyber criminals, or groups funded by nations, to lead cyber attacks against other countries. These threat actors target states’ critical infrastructure like media, healthcare, military, communication, financial institutions, and industrial facilities. They aim to steal proprietary data and money, facilitate misinformation, or cripple the defense to make room for an aggressive military invasion. A recent example of such events is the Russian-Ukraine cyberattack. In the weeks leading to the Russian – Ukraine war, a series of cyber attacks were commissioned against critical systems in Ukraine, a part of the plan to weaken the state, making it defenseless to Russian military invasion.
Although Ukrainian cybersecurity teams foiled most of these hacks, they still had many adverse effects. In most cases, these cyberattacks are carefully planned and executed with a process spanning several years. Nation-state threats might linger in a system unnoticed, mining relevant data until it’s time to strike the lethal blow.
What Countries have Nation-state Actors?
The nation-sponsored cyber attacks landscape has evolved, and some new nations are taking center stage. Countries with the most sophisticated and alleged sponsors of nation-state cyber attacks include
- Russia
- United States of America
- United Kingdom
- Iran
- China
- North Korea
- Iraq
What Do Nation-state Actors Target?
Contrary to popular belief, state-owned agencies aren’t the only target of nation-sponsored cyber warfare. Private institutions are also at risk of these attacks. For example, in June of 2022, a North Korea-linked Lazarus Hacker group stole about $100 million in cryptocurrency from Harmony’s Horizon bridge. There have also been reports of suspected state-sponsored hackers targeting healthcare facilities to cripple main functions like disaster response efforts.
We can group targets of nation-state hacks into six (6) categories
- Business
- Government
- Military infrastructure
- Media and communications facilities
- Financial services industry
- Healthcare providers
- Critical Industrial facilities
What are the Motivations for a Cyberattack by a Nation-state?
Unlike most individual cyber attacks, nation-state threat actors have varying motives. For individuals, the primary motivation is financial gain and, sometimes, activism. However, nation-state threat actors use techniques like ransomware attacks, DDoS, Malware, etc., to steal information or disrupt other infrastructures. Their motives often fall within four major categories.
A Show of Strength:
In the past, the measure of a nation’s power was the sophistication of its nuclear and military arsenal. While that is still true today, major national systems are now technologically advanced, dependent, and vulnerable. We are now seeing leading nation-state threat actors commission cyberattacks to show strength by attacking critical infrastructure or threatening to expose proprietary information and, in other cases, strong-arm nations with less sophisticated cyber security defense into signing deals. These attacks often have no long terms effects and end once the objective is achieved.
Cyber-warfare:
As of recently, Cyber-warfare has become the new normal. Major players like Iran, Russia, the USA, and China, have commissioned attacks against enemies or their allies. For example, Europe suffered a series of Russian-linked attacks in response to providing support to Ukraine’s war efforts. Most cyber warfare attacks target military formation and cybersecurity security infrastructure where the goal is to disrupt activities and weaken the national defense.
Financial Gain:
Nation-state threat actors also commission cyberattacks as a fundraising approach. While this might be surprising, nations like North Korea have been linked to such hacks. In 2022, reports linked a series of cryptocurrency hacks to North Korea-sponsored hacker groups. A total of $1.7 billion was stolen, with most platforms facing class action suits from their customers.
National Espionage:
Today, data is an expensive commodity on the dark web. Information like identity, proprietary software plans, ballistic missile launch codes, and more are sold to the highest bidder. Nation-state threat actors also commission hacks to steal these types of confidential data from enemy states. A report revealed that in 2020 many state actors used Covid19 as cover to commit espionage.
What Type of Cyberattacks are Nation-state Actors Most Commonly Associated With?
Nation-state threat actors use cyber attack techniques similar to individual hacks, the most notable of these techniques are
- Ransomware
- Malware attacks
- Backdoor attacks
- Phishing attacks
- Distributed Denial of Service (DDoS) attacks
Nation-state Cyber-attacks and Cyber Insurance
Cyber insurance provides coverage for companies that suffer significant infrastructure damage as a result of a cyber-attack. Lately, the conversation of what the future holds has been at the forefront of cyber insurance discussion. With the impending threat of more large-scale hacks, there are some concerns about how it affects insurance companies.
Most insurance companies worry that settling large-scale insurance might not be cost-effective for them. Recently, Lloyds of London, a major cyber insurance company, announced they will discontinue insurance coverage for suspected nation-state hacks. Although other firms have yet to declare their stand on the topic, it is safe to expect more to follow the lead in the coming months.
How to Protect Your Business Against Breaches from National Threat Actors’ Cyberattacks
Cybersecurity is a necessity for businesses in this new dispensation. While most state-sponsored attacks target state-owned agencies, private entities are also at risk. Below are some techniques to help protect your systems from sophisticated nation-sponsored attacks in 2023.
- Setup Multi-Factor authentication
- Develop and implement an incident response protocol
- Adopt Zero trust technology
- Update and upgrade all systems, especially legacy systems.
- Conduct regular Pen testing to identify possible systems vulnerabilities
- Educate employees on how to identify social engineering scams and protect personal systems
- Implement backup plans to keep essential information safe to recover from a breach faster.
Stay Safe from Sophisticated Threat Actors’ Cyberattacks.
At CyberClan, we help organizations build a more robust, advanced, and comprehensive cybersecurity strategy through our proactive risk management services. Our methodology identifies Cybersecurity risks and vulnerabilities, builds secure architecture, and strengthens existing systems. We deploy services, including Phishing Simulation Programs, Tabletop Exercises, Incident Response Plans, and Policy Development to help you protect your systems and avoid litigation from data breaches.
