North Koreans Charged for Fraudulent Activities
A US federal court in St. Louis has charged 14 North Koreans with fraud. They allegedly conspired to extract funds from US companies to finance North Korea’s weapons programs. The accused are part of a larger network of North Korean IT workers operating remotely using stolen identities.
According to the indictment, thousands of North Korean IT workers secured remote jobs at US companies. They allegedly used fake, stolen, or borrowed identities from people in the US and other countries. Their efforts reportedly raised at least $88 million for North Korea over six years.
The suspects were employed by two North Korean-controlled firms, China-based Yanbian Silverstar and Russia-based Volasys Silverstar. These firms hired about 130 North Korean IT workers, who were called “IT Warriors” internally, according to the US Department of Justice.
How the Scheme Worked
Prosecutors say the suspects aimed for salaries of $10,000 per month from their US employers. Beyond their monthly wages, they allegedly stole sensitive company information. They then threatened to leak this data unless their employers paid extortion fees.
To avoid detection, the suspects used stolen identities and paid US residents to receive and host employer-provided laptops. These residents installed remote access software, making it appear as if the North Korean workers were based in the US.
The suspects face multiple charges, including wire fraud, money laundering, and identity theft. Investigators believe they remain in North Korea, making prosecution unlikely. Despite this, the US State Department has offered a reward of up to $5 million for information on the suspects, Yanbian Silverstar, or Volasys Silverstar.
US officials have not disclosed the names of the targeted American companies. “While we have disrupted this group and identified its leadership, this is just the tip of the iceberg,” said FBI Special Agent in Charge Ashley T. Johnson. She added that North Korea trains and deploys thousands of IT workers to execute similar schemes daily.