The Hidden Cost of Remote Hiring
In a startling disclosure, the Justice Department revealed that over 100 US companies, including Fortune 500 firms and a California-based defense contractor, unknowingly funded North Korea's weapons programs through remote work salaries. This elaborate scheme, spanning from 2021 to 2024, involved identity theft, fake IT workers, and laptop farms across 16 states.
How the Scheme Worked
- Identity Theft: Conspirators used online services to steal personal data of 80+ Americans, creating fake identities for Chinese and Taiwanese individuals posing as US-based IT professionals.
- Laptop Farms: Once hired, these fake workers requested work laptops to be sent to addresses in New Jersey, New York, and California, which were actually laptop farms. These farms had computers plugged into hard drives, allowing North Korean IT workers remote access.
- Money Laundering: Salaries were funneled through shell companies like "Tony WKJ," a fake VC-backed startup, directly to North Korea-controlled accounts.
The Fallout
- 29 laptop farms were raided by US law enforcement.
- 13 individuals, including US citizens Wang Zhengxing and Kejia Wang, were indicted. Wang Zhengxing has been arrested, while Kejia Wang remains at large.
- $696,000 was allegedly paid to the conspirators by North Korea for their services.
Broader Implications
This case highlights the risks of remote hiring and the sophisticated methods used by state actors to bypass sanctions. The FBI and Justice Department have been warning about such schemes for years, emphasizing the need for vigilance in hiring practices.
Image: North Korean leader Kim Jong Un supervises a drill. Credit: Korean Central News Agency/Korea News Service via AP
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