- North Koreans secured remote work contracts with US companies, earning $6.8 million to fund weapons
- US national facilitated North Korean workers in obtaining illicit telework employment
- Over 300 US companies were defrauded in the scheme
- North Korean government infiltrated US job markets to raise revenue for illicit nuclear program
- US charges individuals involved in creating false identities for freelance IT work to fund North Korea’s weapons program
North Koreans Employment: A Closer Look at the Illicit Scheme
In a shocking revelation, it has come to light that North Korean technology workers managed to secure remote work contracts with hundreds of American companies over a period of three years, starting in October 2020. This deceptive scheme was orchestrated to support Pyongyang’s illicit nuclear weapons and missile programs, with the US government estimating that approximately US$6.8 million was earned through this fraudulent activity.
Deceptive Practices Unveiled
The mastermind behind this elaborate operation was a US national, Christina Chapman from Arizona, who assisted three North Korean IT workers in obtaining what the State Department refers to as “illicit telework employment” by using the identities of unsuspecting US citizens. More than 300 US companies fell victim to this elaborate ploy, as revealed by the Justice Department when announcing charges against Chapman and her alleged co-conspirators.
The Elaborate Set-Up
Not only did Chapman help in the theft of US identities, but she also set up a “laptop farm” where she hosted computers issued by the US companies on behalf of the North Korean workers. This operation was run from her home to create the illusion that the workers were based in the US. Furthermore, Chapman played a key role in laundering the illicit proceeds by managing the financial transactions, including receiving, processing, and distributing the workers’ paychecks through her personal accounts.
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Unveiling the Global Connection
The investigation also led to charges against Oleksandr Didenko from Kyiv, Ukraine, who was involved in a similar scheme to create accounts using false identities on US-based freelance IT job search platforms and money service companies. Didenko’s operation enabled remote IT workers to purchase or rent accounts using identities that were not their own, further complicating the web of deceit woven by North Korean operatives and their collaborators.
North Korea’s Desperate Revenue Streams
Facing severe sanctions imposed by the US and the United Nations due to its nuclear weapons and ballistic missile programs, North Korea has resorted to deploying IT workers abroad as a means of generating government revenue. These workers, in high demand, can earn substantial amounts, with figures reaching up to US$300,000 per year while working remotely through freelance platforms, often using falsified or stolen identification.
Heightened Security Measures
In response to these illicit activities, the US State Department’s Rewards for Justice program has offered up to US$5 million for any information that could help disrupt efforts to fund North Korea’s weapons programs. It has been noted that North Korea frequently employs fake job offers as a tactic to deceive US employees into divulging sensitive information, adding another layer of complexity to their covert operations.
Ongoing Cybersecurity Concerns
This recent revelation comes in the wake of years of North Korean hackers targeting American companies through ransomware attacks and cryptocurrency thefts to raise funds for their weapons programs. In fact, Chainalysis Inc., a blockchain analysis company, reported that suspected North Korean hackers managed to pilfer slightly over US$1 billion in cryptocurrency over the past year alone.
These nefarious activities underscore the sophisticated and multifaceted approach adopted by North Korea to fund its weapons programs, highlighting the importance of vigilance and stringent security measures to thwart such deceitful schemes. The collaboration between nations and the efforts of law enforcement agencies are crucial in combating these threats and safeguarding the integrity of businesses and individuals against such malicious activities.
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