A US court has charged 14 North Koreans for a fraud scheme that extorted $88 million from US companies. The suspects worked for North Korean-controlled firms. The scheme is part of a larger effort to fund North Korea’s weapons program.
A US court has charged 14 North Koreans for their involvement in a major fraud scheme linked to North Korea’s weapons program. The suspects allegedly used fake identities to extort funds from US companies, raising $88 million over six years.
How the Scheme Operated
The scheme involved thousands of North Korean IT workers, who secured remote jobs using stolen or fake identities. They were employed by North Korean-controlled companies—Yanbian Silverstar in China and Volasys Silverstar in Russia. These firms hired 130 workers known as “IT Warriors,” according to the US Department of Justice.
The workers reportedly received $10,000 monthly salaries from US employers. Along with this, they stole sensitive company data, using it to demand extortion payments. To remain undetected, the suspects employed stolen identities and paid US residents to host laptops and install remote access software. This allowed the North Korean workers to appear as though they were based in the US.
Charges and Legal Implications
The charges against the suspects include wire fraud, money laundering, and identity theft. Investigators believe that most of the suspects are currently in North Korea, complicating efforts to prosecute them. The US State Department has offered a reward of up to $5 million for information related to the suspects or the companies they worked for.
Broader Impact of North Korean Cyber Operations
While the operation has been disrupted, FBI Special Agent Ashley T. Johnson warns that this is just the beginning. North Korea allegedly deploys thousands of IT workers to perpetrate similar schemes daily, with the broader impact still unfolding.