Federal agents have charged 14 North Korean IT workers with orchestrating an $88 million identity theft and extortion scheme to fund North Korea’s weapons programs.
This is insane.
At a Glance
- 14 North Korean nationals charged in an $88 million identity theft and extortion operation
- Scheme involved fraudulent IT job applications using stolen identities
- Suspects accused of wire fraud, money laundering, and identity theft
- U.S. State Department offers $5 million reward for information leading to arrests
- FBI warns companies to vet remote IT hires and verify identities
Massive North Korean Fraud Scheme Uncovered
The U.S. Department of Justice has unveiled charges against 14 North Korean nationals accused of orchestrating a sophisticated $88 million identity theft and extortion operation targeting American companies and individuals. The FBI in St. Louis announced the indictment, revealing a complex scheme designed to funnel wages to finance North Korea’s weapons development programs.
The defendants are charged with wire fraud, money laundering, and identity theft. They allegedly secured remote IT jobs using stolen identities, exploiting U.S. employers under the guise of legitimate employment. The operation not only generated illicit funds but also resulted in the theft of sensitive company information.
Extortion and Domestic Enablers
In a disturbing twist, some of the accused North Korean operatives reportedly resorted to extortion, extracting additional income from businesses they had infiltrated. The FBI is also targeting domestic enablers who facilitated the scheme by providing Wi-Fi access or posing as workers.
“This is just the tip of the iceberg, If your company has hired fully remote IT workers, more likely than not, you have hired or at least interviewed a North Korean national working on behalf of the North Korean government,” special agent Ashley T. Johnson said.
Well, that’s concerning.
The involvement of American citizens in this international fraud highlights the sophisticated nature of the operation and the lengths to which North Korea will go to circumvent sanctions and fund its regime.
Challenges in Prosecution and Prevention
Most of the accused individuals are believed to be in North Korea, presenting significant challenges for U.S. law enforcement in terms of prosecution. In response, the U.S. State Department is offering a $5 million reward for information leading to arrests, underscoring the severity of the threat posed by this criminal network.
“One of the ways to help minimize your risk is to insist current and future IT workers appear on camera as often as possible if they are fully remote,” Johnson added.
The Justice Department’s efforts to disrupt North Korean criminal schemes supporting its regime are part of a broader strategy to combat cyber threats from hostile nations. This case follows previous charges in 2021 against North Korean programmers involved in global cyberattacks for profit, demonstrating a pattern of illicit activities originating from the isolated nation.
In light of these revelations, U.S. companies are being urged to implement stringent vetting processes for remote IT hires and to verify identities thoroughly.
If it’s not China, it’s Russia and if it’s not Russia, it’s North Korea.
Thank goodness we’ll have a new president in a few weeks.
