Financial Crime World

FBI Uncovers Identity Theft Scheme Linked to North Korean IT Workers

The Federal Bureau of Investigation (FBI) has uncovered a massive identity theft scheme linked to North Korean IT workers, which involved the use of stolen identities, false documentation, and “laptop farms” to gain employment at U.S. companies.

Key Findings

  • The scheme was led by Ukrainian national Didenko, who was arrested in Poland on May 6 at the request of the United States.
  • Didenko’s company, upworksell.com, was seized by the Justice Department, and all traffic was diverted to the FBI.
  • The investigation revealed that Didenko sold accounts at U.S.-based freelance IT job search platforms and money service transmitters using false identities, including those of U.S. persons.

The Scheme

  • Didenko managed “proxy” identities for overseas IT workers, provided proxy accounts for freelance platforms and money transmitters, and facilitated the operation of laptop farms hosting hundreds of computers.
  • The scheme was linked to North Korean IT workers through messages in which Didenko acknowledged assisting them.
  • One of his customers requested a laptop be sent from one of Didenko’s U.S. laptop farms to another laptop farm linked to co-conspirator Chapman, showing the interconnectivity of these cells within the North Korean overseas IT worker network.

Consequences

  • Chapman faces up to 97.5 years in prison if convicted.
  • Didenko faces up to 67.5 years in prison if convicted.

Background

  • The FBI and other agencies issued a May 2022 advisory alerting the international community, private sector, and public about the North Korea IT worker threat.
  • Updated guidance was issued in October 2023 by the United States and South Korea, including indicators to watch for that are consistent with North Korea IT worker fraud.

Investigation

  • The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office.
  • Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.

Additional Investigation

  • The FBI New York Field Office is also investigating Didenko’s activities, with assistance from the FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency.
  • Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case.

Important Note

An indictment and criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.