North Korean state-sponsored hackers, part of the APT37 group, are using advanced steganography techniques to embed malicious software within JPEG image files. The RoKRAT malware variant employs a two-stage encryption process, starting with the creation of large malicious shortcut files disguised as legitimate documents. These .lnk files download JPEG images from cloud storage services, which appear to contain valid image headers but actually conceal encrypted malware code. The malware is revealed through multiple XOR decryption operations. Security researchers have identified the steganographic payload at offset 0x4201 within the images. The malware generates temporary files in the %LOCALAPPDATA% directory and executes through rundll32.exe, complicating detection. APT37 also uses fileless attack strategies, injecting shellcode into legitimate Windows processes and exploiting cloud services for command and control operations. Recent attacks have targeted South Korean organizations using social engineering tactics. Traditional antivirus solutions are inadequate against these techniques, prompting experts to recommend Endpoint Detection and Response (EDR) systems for real-time monitoring of anomalous activities.