The US Department of Justice recently unveiled charges against several individuals accused of helping North Korean nationals fraudulently impersonate US residents to secure IT positions in American companies. The conspiracy allegedly resulted in millions of dollars of income being channeled back to North Korea.
As detailed in a government press release, this is the largest case ever charged by the Justice Department involving an IT worker scheme. Among those charged is Christina Chapman, an Arizona woman, who stands accused of facilitating identity theft from over 60 US residents as part of a complex strategy to put North Korean IT workers in remote jobs funneling revenue to weapons programs.
According to the indictment, these foreign workers also attempted to secure proprietary business technology and conduct cyber intrusions into their employers’ networks. The three North Korean nationals named in the indictment reportedly have connections with the North Korean ballistic missile and weapons departments.
Over 300 businesses reportedly fell victim to this scheme including many illustrious US companies; prominent among them being a top-five national television network & media company, a leading technology firm from Silicon Valley, an aerospace & defense manufacturer, a famous American car manufacturer, a high-end retail chain, and a globally recognized media and entertainment organisation.
Chapman allegedly maintained a “laptop farm,” using company-issued laptops to fake the physical presence of the remote workers in the US. She reportedly charged fees for her part in the conspiracy and also facilitated the payment of wages to these foreign nationals.
Kevin Vorndran, Assistant Director of the FBI’s Counterintelligence Division, described these allegations as a new high-tech strategy to bypass US sanctions and commit identity theft and business victimization. This case comes in the wake of North Korea facing severe sanctions since 2017 which have resulted in food shortages and economic hardship. The onset of the 2020 COVID-19 pandemic intensified the crisis when North Korea shut its borders with China, severely crippling trade and triggering a crackdown on unsanctioned domestic and international travel.