Additional Coverage:
North Koreans Charged with Fraudulent IT Scheme
Fourteen North Korean nationals have been indicted for conspiring to use false identities to secure IT jobs in the U.S. and launder millions of dollars back to their homeland, violating U.S. sanctions.
The scheme allegedly generated over $88 million from 2017 to 2023. The defendants face charges including conspiracy to violate economic sanctions, wire fraud, money laundering, and identity theft.
Stolen Identities and Extortion
To hide their true identities, the conspirators used stolen American identities. They also forced employers to pay extortions to prevent sensitive company information from being leaked.
Suspicious Websites and Front Companies
Prosecutors said some websites used by the conspirators contained nonsensical language, raising red flags. They worked for two North Korea-controlled companies in China and Russia, which have been sanctioned by the U.S. Treasury.
Reward for Information
The State Department is offering a $5 million reward for information leading to the capture of the conspirators and others involved with the front companies. Over 130 workers have been employed by these companies, part of a larger scheme to evade sanctions and fund North Korea’s regime.
Tip of the Iceberg
According to the FBI, the scheme is widespread, with thousands of North Korean IT workers deployed to perpetrate similar fraud. The government alleges that North Korea directs these workers to steal sensitive data and siphon funds back to the country.