How 14 North Koreans Pulled Off a Massive $88 Million Fake IT Job Scam
Recently, a group of 14 individuals from North Korea were charged for orchestrating a complex scam, pretending to be IT professionals and collecting a whopping $88 million over six years. Small business owners and entrepreneurs need to be vigilant, as such elaborate schemes are becoming increasingly common in today’s remote working world.
Understanding the Deception
The Scheme’s Origin
The fake IT worker scam began in 2017 and continued until 2023. The perpetrators created false identities, forged resumes, and fabricated fake companies to convince businesses they were legitimate IT professionals.
Fake Identities and Sham Companies
These scammers used fake names and identification to apply for remote IT jobs. To make their ruse more credible, they went as far as building bogus companies complete with faux websites, giving them an air of authenticity when applying for roles.
How the Scam Operated
US-Based Helpers
The group enlisted individuals in the US to participate in job interviews on their behalf, thereby making it challenging for companies to detect the scam. They also arranged for these associates to receive work-related packages, such as laptops, to maintain the appearance of being genuine employees.
Obtaining Extra Payments
After landing jobs, some of these fake IT workers used a sinister tactic: they threatened to disclose sensitive information unless they were paid additional money. Such extortion added another layer of deceit to their operation.
Involved Companies and Awards for Deception
The two main companies involved, Yanbian Silverstar and Volasys Silverstar, are based in China and Russia but are North Korean entities. They allegedly held internal contests, rewarding those who extracted the most money through their deceitful methods.
A Serious Warning for Businesses
Finger Point at Fake IT Schemes
The indictment serves as a stern warning for businesses everywhere. Deputy Attorney General Lisa Monaco emphasized the ongoing threat of these fake North Korean IT workers and highlighted the need to be on guard against such deceptions.
FBI’s Advice to Companies
The FBI underscored the importance of thorough vetting processes. In addition to regular checks, the FBI suggests insisting on video call interviews and regular virtual check-ins to verify the identity and presence of remote workers. This advice comes in response to these fraudsters’ increasingly sophisticated tactics.
The DOJ’s indictment is just one example of the evolving threats businesses face in the digital age.
Upping the Ante in Scams
It’s noteworthy that even skilled cybersecurity firms have been duped, as evidenced by KnowBe4 inadvertently hiring a fraudster for their AI team, illustrating that the tactics used by these scammers are continuously becoming more sophisticated.
For entrepreneurs and small business owners, staying informed and cultivating robust hiring processes is essential. The digital landscape offers new opportunities but also opens up new avenues for deception. Therefore, recognizing the signs of fraudulent activity and implementing stringent verification processes can help safeguard your business against such scams.
Conclusion
This intricate scam involving fake IT workers underscores the significance of vigilance and thorough vetting. As scams become increasingly cunning, businesses must adopt equally innovative measures to protect themselves. Vigilance coupled with proactive measures can go a long way in ensuring that your business doesn’t fall prey to such cunning schemes.
