Fraud Charges Against North Korean Operatives

A US federal court in St. Louis charged 14 North Koreans with fraud targeting US companies. The accused allegedly conspired to steal funds and finance North Korea’s weapons programs. They operated as part of a larger network of North Korean IT workers.

The indictment reveals thousands of North Korean IT workers obtained remote jobs at US firms using false identities. They allegedly used fake, stolen, or borrowed identities from people in the US and other countries. Prosecutors claim they generated at least $88 million for North Korea over six years.

The suspects worked for two North Korean-controlled firms, China-based Yanbian Silverstar and Russia-based Volasys Silverstar. These firms employed about 130 North Korean IT workers called “IT Warriors,” according to the US Department of Justice.

Methods Used to Evade Detection

Prosecutors say the suspects aimed for monthly salaries of $10,000 from US employers. In addition to wages, they allegedly stole company data and threatened to leak it unless 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 seem as if the North Korean workers were based in the US.

The suspects face charges of wire fraud, money laundering, and identity theft. Investigators believe they remain in North Korea, making prosecution unlikely. However, the US State Department offered a $5 million reward for information on the suspects, Yanbian Silverstar, or Volasys Silverstar.

US officials have not revealed the names of the targeted US 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 stated that North Korea trains and deploys thousands of IT workers to carry out similar schemes daily.