A massive remote work scam may have fooled hundreds of US companies into hiring North Koreans.
US prosecutors accused North Koreans of infiltrating over 300 US companies, including Fortune 500 giants. To do so, they used a so-called laptop farm.
The elaborate scheme, facilitated by an American accomplice, saw millions of dollars funneled back to North Korea.
An Arizona woman is facing charges. According to the US Attorney’s Office for the District of Columbia, Christina Marie Chapman, 49, was arrested on Thursday.
The woman was charged with nine counts, including conspiracy to defraud the United States.
Five people, including Chapman, are being prosecuted by the U.S. Justice Department.
The scheme placed overseas IT workers posing as US citizens and residents in remote positions at US companies.
According to the indictment, starting in 2020, the operation exploited the identities of roughly 60 unsuspecting US citizens.
These stolen identities helped North Korean IT workers seek remote employment opportunities within the US.
Consequentially, the scheme impacted over 300 companies across diverse sectors. Prosecutors estimate the gains at $6.8 million, siphoned back to North Korea.
The indictment further suggests that Chapman wasn’t alone in profiting from the scam. In exchange for her services, she reportedly charged a monthly fee to the North Korean workers.
Additionally, businesses must reassess their hiring practices to ensure robust verification processes are in place to prevent such infiltration in the future.
