On December 13, 2024, the head of the FBI office in St. Louis, Missouri, Ashley T. Johnson, announced 14 North Korean nationals have been indicted for their alleged part in a scheme in which they used false identities to get jobs at United States companies. And then these individuals funneled their wages to the North Korean government to help with the development of ballistic missiles and other weapons. According to Johnson, this indictment is only the tip of the iceberg. The scheme involved thousands of IT workers which generated more than $88 million in funds for the North Korean government.
Johnson claims that if a US company has hired fully remote IT workers, it is more likely than not, that company has hired or at least interviewed a North Korean national working on behalf of the North Korean government. The conspirators allegedly worked for two North Korea-controlled companies, Yanbian Silverstar and Volasys Silverstar, which are respectively based in China and Russia. The U.S. Treasury Department has previously sanctioned both companies. But sanctioning doesn’t stop fraudsters from scheming when using stolen identities to generate revenue for the country’s ruling regime.
Unfortunately, it appears that some Americans assisted in the scheme. To illegally gain employment, the international fraudsters paid US citizens to let them use their home Wi-Fi connections, or to pose as the IT workers in on-camera job interviews. Johnson said the FBI is also pursuing those “domestic enablers.”
While no one has been arrested, the fraudsters have been identified. All fourteen are listed as “Wanted by the FBI.” The conspirators each face up to twenty-seven years in prison if convicted, the DOJ said.
Today’s Fraud of The Day is based on article “U.S. charges 14 North Koreans in $88 million identity theft and extortion case” published by CNBC News on December 13, 2024.
Officials accused 14 North Koreans of conspiring to use false identities to get IT jobs with U.S. companies and siphon money back to their home country. The Department of Justice accused 14 North Korean nationals of conspiring to use false identities to get IT jobs with U.S. companies and siphon money back to their home country, in violation of U.S. sanctions.
The indictment, filed Wednesday in Missouri federal court, alleged that the conspiracy generated at least $88 million between April 2017 and March 2023. All 14 defendants are charged with conspiracy to violate the International Emergency Economic Powers Act, as well as conspiracy to commit wire fraud, money laundering and identity theft. Eight of the conspirators are also charged with aggravated identity theft.