US Sanctions North Korean IT-Worker Fraud Scheme — SkimNews
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- Treasury Department imposed sanctions on Wednesday against North Korean government-run schemes that use IT workers to defraud U.S. businesses and generate revenue for Pyongyang's weapons programs.
- North Korean IT workers fraudulently gained employment with companies in the United States and elsewhere; Pyongyang took most of their wages to fund weapons of mass destruction and ballistic missile programs.
- First Financial and Technical Development Center was a named target, alongside facilitators and IT workers based in North Korea and Russia; six sanctioned individuals were linked to the firm.
- Australia and the European Union also imposed North Korea-related sanctions in October, while Treasury said the networks permeate the global financial system and require a unified response.
- Treasury Department had already sanctioned a separate North Korean IT-worker network in March.
- Trump has been eager to restart talks with North Korea, but Pyongyang has shown little interest; earlier in October he downplayed another high-profile meeting with Kim in China next month.
Why it matters: Sanctioning First Financial and Technical Development Center and six linked individuals targets the named infrastructure behind a system that diverted most North Korean IT workers' wages to Pyongyang's missile and weapons programs. U.S. businesses are the fraud scheme's direct target, while North Korea loses a revenue channel that Treasury says reaches through the global financial system.
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