Financial Crime World

North Korea’s IT Workers: A Growing Threat to Financial Security

North Korea’s IT workers have emerged as a significant threat to financial security, with experts warning that they are evading sanctions and targeting private companies to generate illicit revenue for the regime.

How North Korean IT Workers Evade Sanctions

According to reports, North Korean IT workers use various techniques to obfuscate their identities. They enlist unwitting U.S.-based individuals to gain fraudulent employment and access to company networks. These individuals provide a U.S.-based location for companies to send devices, allowing North Korean IT workers to circumvent controls in place to prevent the hiring of illicit overseas workers.

The FBI’s Warning

The FBI has warned that these activities violate U.S. and international sanctions and pose a threat to the security of targeted companies. Moreover, companies that outsource IT work to third-party vendors are particularly vulnerable due to their removal from the direct hiring process.

Protecting Yourself Against This Growing Threat

To protect yourself against this growing threat, experts recommend implementing identity verification processes during hiring, onboarding, and throughout employment of remote workers. HR staff, hiring managers, and development teams should be educated regarding the threat, and applicants’ addresses should be monitored for changes after being hired.

Additionally, companies should:

  • Verify all remote workers’ identification information at E-Verify.gov
  • Ensure that third-party staffing firms conduct robust hiring practices

Red Flags to Watch Out For

Other red flags include:

  • Unusual network traffic
  • Inconsistencies in interviews
  • Increased noise during virtual meetings

Companies are advised to report any suspected North Korean IT worker schemes to the FBI’s Internet Crime Complaint Center (IC3) at www.IC3.gov.

Staying Informed and Protecting Your Financial Security

To stay informed about North Korea’s IT workers, remember:

  • Learn the red flag indicators and due diligence measures to avoid hiring North Korean IT workers
  • Keep an eye out for job offers on social media platforms and online job boards that seem too good to be true
  • Verify all remote workers’ identification information at E-Verify.gov
  • Report any suspected schemes to the FBI’s IC3

By taking swift action to protect your financial security, you can help prevent this growing threat from impacting your business.