Major Breakthrough in Global Banking Fraud Case: North Korean Hackers Infiltrated 300 US Companies

Date: May 16, 2024

Contact: press@doj.gov

DPRK Charged for Role in Sophisticated Banking Fraud Scheme

The Department of Justice announced significant action against the Democratic People’s Republic of Korea (DPRK) for their involvement in a sophisticated banking fraud scheme. Over 300 US companies were infiltrated by IT workers suspected to be from North Korea, posing as domestic workers (DOJ, 2024).

Charges Against Defendants

Today, the unsealing of charges revealed an Arizona woman, a Ukrainian man, and three unnamed foreign nationals, who allegedly assisted in the scheme by creating fake identities and facilitated the hiring process (DOJ, 2024).

• Arizona Woman: Christina Marie Chapman was charged with conspiracy to defraud the US, wire fraud, and identity theft, among other crimes.
• Ukrainian Man: Oleksandr Didenko was accused of creating fake accounts at US IT job sites and money service transmitters, selling them to the North Korean IT workers for their employment applications.

Scheme Details

The IT workers gained access to diverse industries and several government agencies, resulting in estimated revenue of over $6.8 million for the North Korean government (DOJ, 2024).

Arrests and Seizures

Two key individuals were arrested and charged:

1. Christina Marie Chapman: forged payroll checks and directed deposits.
2. Oleksandr Didenko: ran a website selling US-based freelance IT jobs’ profiles using false identities.

The investigation was led by the FBI and IRS-CI, with support from multiple offices and US Attorneys. The operation resulted in arrests in the US and Poland, premises searches, and the seizure of wages and website domains.

Penalties

If convicted, Chapman could face a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years for aggravated identity theft. Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years for aggravated identity theft.

Importance of Vigilance

This case is the largest IT workers’ scheme ever charged by the Department of Justice, highlighting the importance of being vigilant against foreign actors attempting to infiltrate US industries and financial systems.

References:

DOJ. (2024, May 16). Press release. Retrieved from https://www.justice.gov/opa/pr/north-korean-hackers-gain-access-us-companies-posing-it-workers.