Cyber Heist: North Korean Nationals Indicted in $88 Million IT Fraud Scheme
A federal court in Missouri has indicted 14 North Korean nationals for illicitly securing employment with U.S. companies using stolen identities of American citizens. The charges include fraud, money laundering, and identity theft. Over six years of criminal operations, from 2017 to 2023, the perpetrators amassed at least $88 million.
The accused worked for government-controlled North Korean companies, including Yanbian Silverstar, entities registered outside the DPRK. These organizations employed approximately 130 IT specialists, known as “IT warriors,” who concealed their origins through forged documents and stolen personal data.
Each worker was mandated to earn over $10,000 per month, with some holding multiple roles simultaneously. Individual annual earnings occasionally exceeded $1 million. Beyond salaries, the accused stole sensitive corporate information and extorted employers by threatening data leaks.
The fraudsters extensively leveraged social engineering techniques, crafting fake LinkedIn profiles, fabricated references, and counterfeit email addresses. Some even hired U.S. citizens to attend interviews under false identities to obscure their true locations.
Deputy Attorney General Lisa Monaco emphasized that the North Korean government deploys IT specialists to generate revenue and steal data to sustain its regime. She described the indictment as a global warning to companies about the risks of such schemes.
The accused face up to 27 years of imprisonment for each offense. The U.S. State Department and FBI have announced a $5 million reward for information leading to their capture. Investigators believe the suspects are currently in North Korea, China, or other countries.
During the investigation, the U.S. Department of Justice seized $320,000 and $444,800 from bank accounts linked to the criminal activities. Previously, $1.5 million had been confiscated, and dozens of domains used for document forgery were shuttered.
The high salaries of American IT professionals rendered this scheme exceptionally lucrative. According to the Department of Justice, similar groups generate hundreds of millions of dollars annually, funneling proceeds into North Korea’s state apparatus, including the Ministry of Defense and weapons of mass destruction programs.
