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Axios
a day ago
- Business
- Axios
How North Korea's IT army is hacking the global job market
Nearly every Fortune 500 company is hiding the same uncomfortable secret: they have hired a North Korean IT worker. Why it matters: Despite how widespread the issue is, few companies are willing to talk publicly about it. Experts say reputational risk, legal uncertainty, and embarrassment all contribute to the silence — which in turn makes the problem harder to solve. Dozens of resumes, LinkedIn profiles, and fraudulent identity documents shared with Axios lay bare the scale and sophisticated of the scams. The big picture: For North Korea, this is a precious revenue stream that evades American sanctions — capitalizing on the wealth of high-paying remote worker roles in the U.S. to route cash back to Pyongyang. In the past two years, companies and their security partners have begun to grasp the scale of the problem — and now, they're sounding the alarm about where it's headed next. "They've been stealing intellectual property and then working on the projects themselves," Michael "Barni" Barnhart, principal investigator at DTEX Systems, told Axios. "They're going to use AI to magnify exponentially what they're already doing — and what they're doing now is bad." Between the lines: It sounds easy to simply weed out North Korean job applicants. But some of the world's biggest firms have found it devilishly difficult. That's because the North Korean operation has become as complex as a multi-national corporation. It involves several North Korean government offices, dozens of China-based front companies and Americans willing to facilitate the fraud. And the undercover North Korean IT workers are often exceptional at their jobs — at least until they start stealing sensitive data or extorting companies that try to fire them. Google Threat Intelligence VP Sandra Joyce recalled the response of one employer when told they likely had a North Korean fraudster on staff: "You guys better be right, because that is my best guy." The groups running the show North Korea has invested years into building up its remote IT labor force, providing training not just for remote job fraud but also corporate espionage and IP theft. Workers are selected and trained at elite institutions such as Kim Chaek University of Technology and the University of Sciences in Pyongsong — some with specializations in software development, AI or cryptography. Research from DTEX shows that the most advanced worker scams are often coordinated with units like APT 45, a notorious government hacking group known for infiltrating companies, running scams and laundering money. Other participants in the scheme include the Lazarus Group, which typically leads the regime's cryptocurrency hacks and has positioned insiders within crypto companies, and Research Center 227, a new AI research unit inside North Korea's intelligence agency. The intrigue: Cybersecurity companies have been discovering and naming new groups running these hacks, with names like Jasper Sleet, Moonstone Sleet and Famous Chollima. The scale Driving the news: Nine security officials who spoke with Axios all said they've yet to meet a Fortune 500 company that hasn't inadvertently hired a North Korean IT worker. Google told reporters at the RSA Conference in May that it had seen North Koreans applying to its jobs. SentinelOne and others have said the same. KnowBe4, a cybersecurity training company, admitted last year that it hired a North Korean IT worker. A smaller cryptocurrency startup told the WSJ that they accidentally had North Korean workers on their payroll for almost two years. In one case, Sam Rubin, senior vice president of Palo Alto Networks' Unit 42 consulting and threat intelligence team, told Axios that within 12 hours of a large client posting a new job, more than 90% of the applicants were suspected to be North Korean workers. "If you hire contract IT workers, this has probably happened to you," Rubin said. The intrigue: Even small-to-mid-sized companies that rely on remote IT talent or outsource their IT needs to a consulting firm have encountered this problem, Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, said. CrowdStrike has investigated more than 320 incidents where North Korean operatives landed jobs as remote software developers, according to the company's annual threat hunting report published earlier this month. How it works Getting a job at a U.S. company — and going undetected — is a team effort that involves several North Korean IT workers, China-based companies and even a handful of Americans. Some of the North Korean workers are even stationed in China and other nearby countries to keep suspicions low. First, the workers identify potential identities they can assume. Those are often stolen from a real person, or even from a dead U.S. citizen. To pull off this deception, they create fake passwords, Social Security cards and utility bills. Many of them use the same recognizable tablecloth in the background of fake ID photos, Meyers said. For instance, in a December indictment of 14 North Koreans, the workers were found using stolen identities to apply to dozens of jobs. Second, the workers find open jobs in software development, technical support and DevOps posted on Upwork, Fiverr, LinkedIn, and third-party staffing platforms. Much of this is streamlined through AI tools that help track and manage their job applications. Many of them will use AI tools to help generate passable resumes and LinkedIn profiles, according to Trevor Hilligoss, senior vice president at SpyCloud Labs. "There's a hierarchy: There's a group of people who are the interviewers, and they're the ones with the really good English specialties," Hilligoss told Axios. "When they get hired, that gets turned over to somebody that's a developer." Those developers will often juggle several jobs and multiple different personas. Zoom in: Job interviews would seem like the obvious time to catch a fraudulent application. But the "applicants" — whether they're using their real faces and voices or AI-enabled personas — are practiced interviewers with the skills necessary to complete technical coding assignments. In multiple cases, hiring managers only realized something was wrong weeks later when employees looked or behaved differently than during the interview, Barnhart said. After landing the job, the developers step in and request that their company laptop be shipped to a U.S. address — often citing a last-minute move or family emergency. That address often belongs to an American accomplice, who typically operates what's known as a "laptop farm." These facilitators are told to install specific remote desktop software onto the laptops so the North Korean worker can operate the laptop from abroad. In July, the FBI said it executed searchers of 21 premises across 14 states that were known or suspected laptop farms, seizing 137 laptops. Then there's the challenge of ensuring the salaries actually reach the North Korean regime. That often requires the facilitators forward the paychecks to front companies across China or funnel it through cryptocurrency exchanges. In a report published in May, researchers at Strider Technologies identified 35 China-based companies linked to helping North Korean operations. Challenges Hiring processes are so siloed that it's difficult for managers to see all the signs of fraud until the North Korean workers start their roles, Kern said. Even if a company suspects something is wrong, the forensic signals can be subtle and scattered. Security teams may detect unusual remote access tools or strange browser behavior. HR might notice recycled references or resumes that reuse the same phone number. But unless those insights are pooled together, it rarely raises alarms. "There's not one giant red flag to point to," said Sarah Kern, a leading North Korea analyst at Sophos' Counter Threat Unit. "It is multiple technical forensic aspects and then such a human aspect of small things to pick up on that aren't necessarily going to be in telemetry data from an endpoint detection standpoint." Yes, but: Even when these workers are detected, they're not easy to fire. Many of them are so talented that managers are reluctant to even believe they could actually be in North Korea, Alexandra Rose, director at Sophos' Counter Threat Unit, told Axios. If these workers are caught, employers then face a litany of problems: Some workers will download sensitive internal data and extort the companies for a hefty sum in a last-ditch effort to bleed the company of whatever money they can. Some workers have filed legal complaints, including workers' compensation claims, Barnhart said. In one case, Barnhart said he had a worker try to claim domestic violence protections as they were being fired just to buy time. "There is a lot of focus on companies that cybersecurity shouldn't just be for the CISO," Rose said. "You want a bit of that security feel throughout the company, and this is the kind of case that really demonstrates why that is." The bottom line: Some companies also hesitate to report these incidents, fearing they could be penalized for unknowingly violating U.S. sanctions — even though law enforcement officials have said they're more interested in cooperation than prosecution. What's next Right now, the operations are predominantly focused on making money for North Korea's regime. Threat level: But the hacking groups involved are evolving into something more sophisticated and dangerous — including by potentially building their own AI models and feeding in sensitive U.S. company data. That's a particular concern in the defense sector. Barnhart says his teams have seen North Korean IT workers increasingly studying information about AI technologies, drone manufacturing and other defense contract work. What to watch: As U.S. companies become more alert, North Korean IT workers are shifting their focus abroad as they seek employment at other companies and set up laptop farms throughout Europe — suggesting the operation is only just now ramping up, instead of slowing down.
The Sun
26-05-2025
- The Sun
Fears North Korean spies are posing as IT workers to infiltrate Western companies & earn cash for Kim's warped regime
BRITS could be helping North Korean spies pose as IT workers to infiltrate Western companies, an intelligence report has warned. The fake IT workers are hired for fully remote jobs using stolen or fake identities to earn cash for Kim Jong-un 's regime. 5 5 5 Once inside the North Korean fraudsters exploit the companies - stealing funds and information. The scams have had a devastating impact on companies across the country and left them wondering just how North Korea pulled them off. Now, an intelligence report has revealed that Brits could have been helping all along. According to the report from Google Threat Intelligence the North Korean spies use "local facilitators" to help them get jobs and verify their identities. These middlemen use remote desktop software that allows workers from North Korea to log in to a company's internal servers - making it look like they are working from inside the country. Google researchers found that one laptop issued by a US company was being hosted in London, sparking fears that Brits may be part of the shady network. Principal i3 Insider Investigator at DTEX Systems, Michael Barnhart, told The Sun: "The London-based facilitator previously acted as the primary 'farmer' and enterprise representative in the operation, having established a front company in collaboration with another facilitator who was the main North Korean IT worker." Barnhart said that all evidence of the operation has now been removed. This follows a wider trend across the US where American citizens have been accused of helping the fake IT workers remain undetected. Matthew Knoot, 38, was arrested for allegedly helping North Korean workers in Nashville, Tennessee last year. Kim Jong Un blows up the ground in North Korea as part of a building project Knoot allegedly helped the workers use stolen identities to pose as US citizens and hosted company laptops at his home. From there he ran a "laptop farm" - allowing the North Korean actors to log in to the computers from China. Knoot is also believed to have helped launder money from the remote IT jobs to accounts tied to North Korean and Chinese actors. United States Attorney Henry Leventis said at the time that Knoot helped funnel hundreds of thousands of dollars to the North Korean government through the scheme. HOW DO THE SCAMS WORK? The North Korean spies reportedly use stolen or fake identities to set up accounts on remote job sites - including LinkedIn, Upwork and Freelancer - to apply for work. And to make sure they're not detected they use "aliases, false or fraudulent personae and proxies," according to the HM Treasury's Office of Financial Sanctions Implementations. Once they make it to interview stage, they often use AI-generated deepfakes to look and sound like the person they are claiming to be. These AI deep-fakes are becoming increasingly easy to purchase, with a full identity complete with an ID doc and proof of address available from as little as $200 on the dark web. Head of National Security Intelligence at Chainanalysis Andrew Fierman told The Sun: 'All you need are a few photos and a very small clip of voice of the person you're attempting to be and you can effectively be that person' 5 5 After being recruited the North Korean workers use their stolen credentials to breeze through the onboarding process. And they often ask their employers to send their work laptops to front addresses - run by "local facilitators" - which allows them to remain undetected. Once fully onboarded the fraudsters work hard to establish themselves within the company, gaining its trust before they pounce. Companies often allow high-performing workers to refer future employees - allowing them to slowly amass an army of cyber warriors. They then set about hatching plans to 'exploit and steal funds from the organisations'. Fierman explained that there are a number of cunning tactics that the North Korean workers use. Fierman said: 'It's all about getting someone within an organisation to give you an access point unknowingly.' He added: 'For example, if it's bonus season and North Korea knows it's bonus season at your organisation, they might send out an email saying here's the details of your upcoming bonus. 'Somebody is going to get excited and click the link and then they've given North Korea access to the entire infrastructure of their organisation." These sly tactics allow the North Korean workers to access sensitive information as well as money. They reportedly use this information as a bargaining chip if needed - dishing out threats of sharing it with competitors. UK sanctions on North Korea DPRK targets are on OFSI's consolidated list of financial sanctions and are subject to an asset freeze. This regime also includes sectoral financial sanctions, which contain both restrictions and requirements. These include those placed on: The sale or purchase of bonds DPRK credit and financial institutions including branches, subsidiaries and representative offices) UK credit and financial institutions from dealing with DPRK credit and financial institutions (including branches, subsidiaries and representative offices) Representative offices belonging to designated persons Business arrangements with designated persons Financial support for trade Investment and commercial activities Bank accounts for DPRK diplomats and diplomatic missions Leasing or, otherwise making available, real property Source: HM Treasury's Office of Financial Sanctions Implementations (OFSI) KIM'S CASH-STARVED REGIME North Korea has been hit by many sanctions over the years forcing Kim Jong-un to think outside the box. The tyrant has long relied on cyber activity to fund his cash-starved regime and the fake IT worker scams are the latest in a string of shady tactics. Fierman told The Sun: 'None of these North Korean workers are operating of their own will or fruition, they're doing it on behalf of the North Korean government.' And it's thought that the money is going straight into the country's weapons programmes. A UN investigation in 2022 confirmed these suspicions and said that cyber attacks were an "important revenue source" for Pyongyang's nuclear and ballistic missile programme The recent worker scams come after a shocking crypto heist saw North Korea's Lazarus Group accused of stealing $1.2billion back in February.
