FBI says it dismantled North Korean fraud scheme spanning 16 US states

Australia Broadcast Center

a day ago

Authorities in the US have busted an alleged fraud scheme which planted remote tech workers in more than 100 American companies to help finance the North Korean regime's weapons programs.
The scheme saw North Korean tech workers allegedly use stolen and fake identities to gain remote work at the companies with the help of co-conspirators in the US, China and other countries.
In one case, the tech workers stole sensitive information including "export-controlled US military technology", the US Justice Department said.
In a second case, they stole about $US900,000 ($1.4 million) in virtual currency from an Atlanta, Georgia-based company, according to court documents.
Roman Rozhavsky, assistant director of the FBI's counterintelligence division, said these latest schemes were part of a "massive campaign" by North Korea's regime.
"North Korea remains intent on funding its weapons programs by defrauding US companies and exploiting American victims of identity theft," he said.
"The FBI will do everything in our power to defend the homeland and protect Americans."
The US and United Nations have long used sanctions to isolate the North Korean regime and force it to denuclearise, which has heavily restricted its economy.
Australia has imposed autonomous sanctions on North Korea since 2006.
The US Justice Department says 29 known or suspected "laptop farms" have been searched across 16 states as part of investigations.
Law enforcement has also seized 29 financial accounts used to launder illicit funds, the department said.
A New Jersey man was arrested on Monday, local time, for his alleged role in one of the schemes which spanned several years and generated more than $US5 million ($7.6 million) in revenue.
Six Chinese nationals and two Taiwanese nationals were also charged in connection to the scheme.
According to court documents, the accused stole the identities of more than 80 US citizens to secure work at more than 100 US companies, including Fortune 500 companies.
They then caused the victim companies to incur legal fees, computer network repair costs and other damages and losses totalling about $US3 million ($4.6 million).
The co-conspirators also created "laptop farms", hosting laptops belonging to US companies in their homes and enabling tech workers to access them remotely.
This tricked the companies into believing the IT workers were based in the US.
The accused also created shell companies with corresponding websites and financial accounts, to link the tech workers to supposedly legitimate US businesses.
They funnelled money from the targeted US companies into these accounts.
On Monday, the FBI also seized 17 webpages and 29 financial accounts holding tens of thousands of dollars in funds, which were used to launder revenue for North Korea's regime.
In a second case, prosecutors allege four North Korean nationals schemed to steal more than $US900,000 ($1.4 million) in virtual currency from two companies based in Serbia and Atlanta, Georgia.
The four North Koreans, who remain at large, then laundered the money through foreign accounts, according to the justice department.
"This indictment highlights the unique threat North Korea poses to companies that hire remote IT workers," US Attorney Theodore S Hertzberg for the Northern District of Georgia said.
The US Department of State has offered potential rewards of up to $US5 million ($7.6 million) in support of international efforts to disrupt North Korea's "illicit financial activities".
This includes cybercrimes, money laundering and sanctions evasion.