2024-08-09
Tennessee Man Arrested for Running Laptop Farm Employing North Korean Citizens
US federal authorities have arrested Matthew Isaac Knoot for allegedly helping North Korean citizens fraudulently obtain remote employment with IT companies. US sanctions forbid US companies from hiring North Korean citizens. Knoot allegedly helped the North Koreans apply for remote IT positions using a stolen identity. The North Korean workers were paid hundreds of thousands of dollars, which was allegedly funneled to North Korea's weapons program.
Editor's Note
Understand how this fraud works to prevent falling for it: Knoot was hired by dozens of firms using a stolen identity; the firms then sent him laptops that he connected in Nashville and which the North Korean workers would VPN into and use. At times this scenario also includes cameras which are pointed at MFA tokens so the remote worker can enter the code. His undoing was likely his reporting income, against the stolen identity, in Nashville, which didn't mesh with the actual taxes filed. Due care must be made to ensure remote workers are who they claim to be, and that additional connections, with corresponding RDP services, to remote laptops are not in play.
Lee Neely
It's not clear how technical this person was or if they were a hobbyist who got duped into some type of fraud. It is a strange case, and I am going to look further into it. If this has happened once, it may have been happening in more places.
Moses Frost
In my 90th year, I may yet live long enough to see the day when the risk of cyber crime exceeds its return.
William Hugh Murray
Read more in
The Register: US 'laptop farm' man accused of outsourcing his IT jobs to North Korea to fund weapons programs
The Hacker News: DOJ Charges Nashville Man for Helping North Koreans Get U.S. Tech Jobs
The Record: Tennessee man charged over role in North Korea IT worker scheme
SC Magazine: US charges Nashville man in alleged North Korean fraud scheme
Ars Technica: Nashville man arrested for running 'laptop farm' to get jobs for North Koreans