North Korean IT workers are using stolen identities and U.S.-based laptop operations to obtain remote jobs at American companies, creating a security risk that can extend beyond fraudulent employment.
The U.S. Justice Department has prosecuted several schemes involving North Korean workers. In April, two U.S. nationals were sentenced for helping North Korean IT workers pose as U.S. residents and secure jobs at more than 100 companies. The scheme compromised the identities of at least 80 Americans, generated more than $5 million for North Korea and caused at least $3 million in damages, according to Inc.
In February, a Ukrainian national was sentenced to five years in prison for selling or renting stolen identities that helped overseas IT workers obtain jobs at 40 U.S. companies.
Company Laptops Can Help Overseas Workers Appear U.S.-Based
One method involves having employers send laptops to U.S. addresses controlled by facilitators. The computers can then be accessed remotely by workers overseas. Multiple company laptops may be kept at a single location, allowing workers outside the U.S. to appear as though they are working domestically.
Blake Hall, CEO of identity verification company ID.me, said his company prevents two to three North Korean applicants from obtaining remote IT jobs each week among the employers it serves. ID.me provides identity verification for new hires at about 900 employers, including Fortune 100 and Fortune 500 companies.
Hiring Checks Can Leave An Identity Gap
The problem can arise when different parts of the hiring process assume another department has already confirmed an applicant’s identity. Applicant tracking systems, interviews, criminal background checks and employment eligibility verification can each verify different information without establishing that the person hired is the same person who will perform the work.
The consequences can extend beyond an employee misrepresenting their identity. Once hired, fraudulent workers may gain access to company systems, sensitive information and intellectual property. The schemes also generate revenue for North Korea.
Remote Hiring Adds A Security Layer To Identity Verification
The cases show why identity verification can remain relevant after a candidate clears the initial hiring process. Employers may need to establish who receives company equipment and who ultimately uses it, particularly for remote positions with access to sensitive systems.
The issue also creates a clear need for employers to assign responsibility for identity verification rather than leaving HR, IT and security teams to assume another group has handled it.
