US clamps down on N. Korean IT worker schemes affecting over 70 American firms
Summary
The U.S. Justice Department announced coordinated law enforcement actions in Ohio and Texas Tuesday against North Korean remote IT worker schemes affecting more than 70 American companies. Authorities indicted one person, arrested two American nationals and seized 187 computers used to obtain fraudulent employment. The scheme generated about $3 million allegedly transferred to North Korean-controlled entities under U.S. sanctions.
Key Facts
- The affected American companies operated in health care, communications, retail and manufacturing.
- North Korean IT workers allegedly used stolen or fabricated identities and virtual private networks to secure remote jobs.
- U.S.-based facilitators hosted company-issued laptops and transferred earnings to North Korean-controlled accounts.
- The FBI searched more than 40 residences in Texas from Sept. 21-25 that were known or suspected to be laptop farms.
- The State Department offered potential rewards of up to $5 million for information supporting efforts to disrupt North Korea’s illicit financial activities.
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WASHINGTON — The U.S. Justice Department said Tuesday it has clamped down on North Korean remote IT worker schemes that affected more than 70 American companies and generated millions of dollars in revenue allegedly linked to the North Korean regime.
The department announced a series of recent coordinated law enforcement actions in Ohio and Texas, including an indictment, two arrests and the seizure of 187 computers used by North Korean IT workers to obtain fraudulent employment at U.S. companies.
"North Korea's rogue regime uses its pervasive IT worker schemes to raise revenue for various illicit purposes, including the development of weapons that could ultimately target the United States or its allies," Assistant Attorney General for National Security John Eisenberg said in a department release.
According to the department, North Korean IT workers used stolen or fabricated identities and virtual private networks to secure remote jobs at American companies. They relied on U.S.-based facilitators who hosted company-issued laptops and transferred earnings to North Korean-controlled accounts.
An indictment in Ohio showed that the scheme affected more than 70 U.S. companies across sectors including health care, communications, retail and manufacturing, generating approximately $3 million in revenue believed to have been transferred to North Korean-controlled entities under U.S. sanctions.
As part of the coordinated actions, U.S. authorities arrested two American nationals on charges involving wire fraud, money laundering and identity theft.
The Federal Bureau of Investigation also conducted searches and other law enforcement actions at more than 40 residences in Texas that were known or suspected to be operating as so-called laptop farms from Sept. 21-25.
The State Department has also offered potential rewards of up to $5 million in support of international efforts to disrupt North Korea's illicit financial activities, including cybercrime, money laundering and sanctions evasion.
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