Arrests made by Justice Department in North Korean identity theft scheme targeting IT workers | WGN Radio 720

The Justice Department announced on Thursday the arrests of three individuals involved in a sophisticated stolen identity scheme that funnels proceeds to the North Korean government, including funding its weapons program. The scheme, which employs North Korean IT workers living abroad, relies on stolen American identities to secure remote jobs at U.S.-based Fortune 500 companies.

Prosecutors revealed that the fraud allows North Korea, heavily sanctioned and cut off from the U.S. financial system, to exploit the high demand for tech workers in the U.S. and the rise of remote work. The conspiracy has impacted over 300 companies, generating more than $6.8 million for the workers based outside the U.S., in countries like China and Russia.

Among the arrested individuals is Cristina Marie Chapman from Arizona, who allegedly facilitated the scheme by assisting workers in obtaining stolen identities, receiving laptops from U.S. companies under false pretenses, and aiding in remote connections to the companies. The other defendants include Oleksandr Didenko from Ukraine, who created fake job search accounts, and Minh Phuong Vong from Vietnam, who fraudulently obtained a job at a U.S. company on behalf of remote workers posing as him.

The State Department is offering a reward for information on North Korean IT workers, while the FBI issued a warning to companies about the scheme. They advised implementing identity verification standards in the hiring process and educating staff about the threat. The arrests shed light on the evolving intersection of corporate compliance and national security in the digital age.