North Korea slams DOJ over IT worker scheme targeting US companies

North Korean officials have accused the U.S. Department of Justice of running an “absurd smear campaign” after revealing several schemes by the Democratic People’s Republic of North Korea to fund the regime through remote information technology work for U.S. companies. The DOJ announced that North Korean actors, along with individuals in the U.S., China, the United Emirates, and Taiwan, had orchestrated a complex scheme to obtain employment with over 100 U.S. companies, including Fortune 500 companies.

The elaborate scheme involved North Korean workers securing jobs with U.S. companies, receiving laptops, and allowing remote access to North Korean IT workers. In one instance, North Korean IT workers used false identities to gain employment with a blockchain research and development company in Atlanta, Georgia, stealing over $900,000 in virtual currency.

The DOJ unsealed a five-count indictment against Zhenxing Wang, a U.S. national living in New Jersey, who was subsequently arrested. Wang and his co-conspirators generated over $5 million in revenue through their illicit activities. Chinese and Taiwanese nationals were also charged in the indictment, along with another U.S. national from New Jersey.

In response to the DOJ’s actions, a spokesperson for the DPRK Foreign Ministry condemned the U.S. for its alleged cybercrime accusations, labeling it as an “absurd smear campaign” and a violation of sovereignty. The spokesperson criticized the U.S. for creating “international cyberspace instability” and accused the U.S. of posing a constant threat to cybersecurity.

The indictment alleges that the defendants compromised the identities of over 80 people in the U.S. to obtain remote jobs at more than 100 companies, resulting in damages and losses exceeding $3 million. The defendants, along with U.S. facilitators, established shell companies to facilitate the scheme and received funds from U.S. companies, which were then transferred overseas.

The DOJ also seized multiple web domains and financial accounts used in the scheme, with the FBI and Defense Criminal Investigative Service playing a vital role in the investigation. In a separate indictment, four North Korean nationals were charged with wire fraud and money laundering for stealing virtual currency from two companies and laundering the proceeds.

The suspects are currently at large and wanted by the FBI. The complex nature of the scheme highlights the growing sophistication of cybercrime and the need for heightened cybersecurity measures. The U.S. government’s efforts to uncover and prosecute such criminal activities demonstrate its commitment to protecting national security and combating cyber threats.