How One Company Finally Exposed North Korea's Massive Remote Workers Scam

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NBC News investigates North Korea's "wide-ranging effort to place remote workers at U.S. companies in order to funnel money back to its coffers and, in some cases, steal sensitive information." And working with the FBI, one corporate security/investigations company decided to knowingly hire one of North Korea's remote workers — then "ship him a laptop and gain as much information as possible" about this "sprawling international employment scheme that is estimated to include hundreds of American companies, thousands of people and hundreds of millions of dollars per year."It worked.... Over a roughly three-month investigation, Nisos uncovered an apparent network of at least 20 North Korean operatives including "Jo" who had collectively applied to at least 160,000 roles. During that time, workers in the network — which some evidence showed were based in China — were employed by five U.S.-based companies and allegedly helped by an American citizen operating out of two nondescript suburban homes in Florida... Nisos estimated that in about a year, "Jo", who was likely a newer member of the team, applied to about 5,000 jobs... "They attended interviews all day every day, and then once they secured a job, they would collect paychecks until they were terminated," [according to Jared Hudson, Nisos' chief technology officer]... With the ability to see which other U.S. companies Jo and his team were working for — all remote technology roles — Nisos' CEO, Ryan LaSalle, began making calls to their security teams to alert them of the fraud. "Most of the companies weren't aware of it, even if they had pretty robust security teams," LaSalle said. "It wasn't really high on the radar." NBC News describes North Korea's 10-year effort — and its educational pipeline that steers promising students into "computer science and hacking training before being placed into cyberunits under military and state agencies, according to a recent report by DTEX, a risk-adaptive security and behavioral intelligence firm that tracks North Korea's cybercrime."In one case, a North Korean worker stole sensitive information related to U.S. military technology, according to the Justice Department. In another, an American accomplice obtained an ID that enabled access to government facilities, networks and systems. At least three organizations have been extorted and suffered hundreds of thousands of dollars in damages after proprietary information was posted online by IT workers... Analysts warn that North Korean IT workers are targeting larger organizations, increasing extortion attempts and seeking out employers that pay salaries in cryptocurrency. More recently, security researchers have uncovered fake job application platforms impersonating major U.S. cryptocurrency and AI firms, including Anthropic, designed to infect legitimate applicants' networks with malware to be utilized once hired. The global cybersecurity company CrowdStrike identified a 220% rise in 2025 in instances of North Koreans gaining fraudulent employment at Western companies to work remotely as developers... The payoff flowing back to Pyongyang from these schemes is enormous. Some North Korean IT workers earn more than $300,000 per year, far more than they'd be able to earn domestically, with as much as 90% of their wages directed back to the regime, according to congressional testimony from Bruce Klinger, a former CIA deputy division chief for Korea. The United Nations estimates the schemes, which proliferated after the pandemic when more companies' workforces went remote, generate as much as $600 million annually, while a U.S. State Department-led sanctions monitoring assessment placed earnings for 2024 as high as $800 million... So far, at least 10 alleged U.S.-based facilitators have been federally charged, including one active-duty member of the U.S. Army, for their alleged roles in hosting laptop farms, laundering payments and moving proceeds through shell companies. At least six other alleged U.S. facilitators have been identified in court documents but not named... "We believe there are many more hundreds of people out there who are participating in these schemes," said Rozhavsky, the FBI assistant director. "They could never pull this off if they didn't have willing facilitators in the U.S. helping them...." The scheme itself is also becoming more complex. North Korean IT teams are now subcontracting work to developers in Pakistan, Nigeria and India, expanding into fields like customer service, financial processing, insurance and translation services — roles far less scrutinized than software development.Read more of this story at Slashdot.