Thousands of IT contractors in US sent millions to fund North Korea missile program: FBI

Thousands of information technology (IT) workers working remotely for U.S. companies have for years sent millions of dollars to North Korea under the radar to fund its weapons program, according to federal prosecutors.

The Justice Department (DOJ) in a statement on Wednesday said authorities seized 17 website domains used by North Korean IT workers in a scheme to defraud the U.S. and foreign businesses, evade sanctions and fund the the country’s ballistic missile program. 

This comes on top of the $1.5 million in revenue the workers collected from their victims that was apprehended in January. The department also developed programs and partnerships to deny the IT workers access to their preferred online freelance work and payment service providers, according to the release.

Court documents say North Korea dispatched the workers to live abroad in countries such as Russia and China to earn and funnel money into its ballistic missile program. Their scheme involved the use of pseudonymous email, social media, payment platforms, online job accounts and false websites, officials said.

Investigators also claimed the workers “infiltrated computer networks of unwitting employers to steal information and maintain access for future hacking and extortion.”

“Today’s seizures exemplify our commitment to working with our federal and international partners to recognize and disrupt the threat from illicit actors working on behalf of the Democratic People’s Republic of Korea,” FBI Cyber Division Assistant Director Bryan Vorndran said in the release.

“These takedowns also serve as reminders to ensure that our private sector partners are equipped and prepared with due diligence measures to prevent the inadvertent hiring of these bad actors across American businesses,” they continued. “The FBI encourages U.S. companies to report suspicious activities, including any suspected DPRK IT worker activities, to your local FBI field office.”

The companies unknowingly involved in the scheme were not named in the report. The investigation is ongoing.

The news comes as United Nation experts signaled earlier this year North Korean-based working hackers stole record-breaking virtual assets in 2022 that were estimated to be worth between $630 million and more than $1 billion, according to the Associated Press. 

Tensions have remained high between the U.S. and North Korea — as the latter has test-fired more than 100 missiles since last year, AP reported.

In response, the U.S. has expanded its military exercises with Asian countries.