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US Offers $5M Reward for Leads on North Korea's Alleged Tech Espionage Scheme

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US Offers $5M Reward for Leads on North Korea's Alleged
Workers monitor computer displays in a control room in Hungnam Fertilizer Complex on February 04, 2019 in Hamhung, North Korea. Getty Images/Carl Court

The United States has announced a $5 million reward for information about a scheme involving North Korean IT workers who allegedly infiltrated US companies, stole trade secrets, and funneled millions of dollars to fund Pyongyang's weapons programs.

According to the US State Department, approximately 130 North Korean workers secured jobs with US employers from 2017 to 2023, generating at least $88 million for the regime's weapons of mass destruction initiatives.

Remote IT Workers Accused of Stealing US Secrets to Support North Korea

These workers operated remotely, often from China or Russia, and used stolen American identities to obtain jobs at unsuspecting companies.

Once hired, they stole sensitive information, such as proprietary computer codes, or threatened to leak data unless paid extortion fees.

The funds from their wages and illegal activities were ultimately directed to the North Korean government.

According to Reuters, the US Department of Justice has indicted 14 North Koreans accused of orchestrating the operation through two companies, Yanbian Silverstar Network Technology in China and Volasys Silverstar in Russia.

The defendants face charges including wire fraud, identity theft, and money laundering. While most of the accused remain in North Korea, authorities are hopeful the reward will encourage leads to help bring them to justice.

Federal investigators revealed that some Americans unknowingly assisted the scheme by providing access to laptops or home Wi-Fi networks.

Others were paid to pose as the workers during virtual job interviews. Recent investigations have also uncovered "laptop farms," where Americans allowed fraudulent workers to use devices provided by US employers.

FBI Warns Businesses: Beware of North Korean Cyber Schemes in Remote Hiring

The FBI has urged companies to be cautious when hiring remote IT workers, emphasizing the importance of verifying identities and conducting regular on-camera meetings to confirm authenticity, Newsweek said.

Officials warned that the scale of the operation means many businesses may have unknowingly employed North Korean nationals working on behalf of their government.

This case highlights North Korea's reliance on cyber-enabled schemes to finance its weapons programs. Similar activities have been uncovered in the past, including global cyberattacks carried out by North Korean operatives in 2021.

The Justice Department and State Department have ramped up efforts to disrupt such operations and have issued warnings to businesses about the risks of hiring disguised foreign nationals.

The US government's actions underscore the threat posed by North Korea's growing cyber capabilities, which continue to exploit global systems to fund its regime. Businesses are encouraged to report any suspicious activities that could aid the investigation and help protect national security.

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