US Sanctions North Korean Firm for IT Worker Fraud Schemes
▼ Summary
– The U.S. Treasury sanctioned three North Korean nationals and a company (Korea Sobaeksu Trading Company) for supporting fraudulent IT worker schemes that fund DPRK’s government.
– North Korea’s IT schemes involve placing tech workers in U.S. companies using fake identities, with earnings funneled to the regime’s nuclear and missile programs.
– The FBI has updated recommendations for U.S. businesses to defend against these fraudulent IT worker schemes.
– OFAC’s sanctions target entities and individuals involved in financial facilitation, recruitment, and cryptocurrency operations for DPRK’s goals, freezing their U.S. assets.
– The U.S. State Department offers rewards up to $7 million for information leading to the arrest or conviction of the sanctioned individuals.
The U.S. government has imposed new sanctions targeting North Korean IT worker fraud schemes designed to secretly fund the country’s weapons programs. Three individuals and a trading company face asset freezes and business restrictions for their involvement in deceptive operations that funnel money to Pyongyang’s nuclear and missile development initiatives.
Korea Sobaeksu Trading Company, along with Kim Se Un, Jo Kyong Hun, and Myong Chol Min, were identified as key players in a network that dispatches North Korean tech workers abroad under false pretenses. These operatives often use stolen or fabricated identities to secure employment at foreign firms, particularly in the U.S., with their salaries diverted back to the regime.
Authorities warn that these schemes pose a significant threat, as the funds directly support North Korea’s prohibited weapons programs. The FBI has issued updated guidance urging businesses to strengthen hiring verification processes to prevent infiltration by such operatives.
This latest move builds on recent enforcement actions, including the dismantling of “laptop farms”, clandestine operations where North Korean IT workers remotely access U.S. jobs, and charges against 14 individuals tied to similar frauds. Earlier in the month, OFAC also sanctioned Song Kum Hyok, a suspected member of the North Korean hacking group Andariel, for facilitating IT worker scams.
Key figures in the sanctions include:
- Korea Sobaeksu Trading Company: A front for North Korea’s Munitions Industry Department, coordinating overseas IT worker deployments and procuring materials for weapons development.
- Kim Se Un: A Sobaeksu representative who managed recruitment efforts, including in countries like Vietnam, to place workers abroad.
- Jo Kyong Hun: Oversaw cryptocurrency and financial operations tied to the regime’s IT projects.
- Myong Chol Min: Assisted in sanctions evasion, attempting to import restricted goods like tobacco to generate revenue.
Beyond freezing U.S.-based assets, the sanctions aim to intensify global scrutiny of North Korea’s illicit financing tactics. The State Department has further incentivized accountability by offering rewards of up to $7 million for information leading to the arrest or conviction of those involved.
With these measures, the U.S. continues to target the financial lifelines sustaining Pyongyang’s military ambitions, reinforcing the need for vigilance among businesses and international partners.
(Source: Bleeping Computer)
