Trump Admin Exposes North Korean Tech-Hiring Scam, US Companies Were Funding the Country's Weapons
The Trump administration imposed sanctions on Wednesday against 10 individuals who were using fraudulent tactics and fake identities to help fund North Korean weapons programs.
The Treasury Department said the scheme was run by the North Korean government and involved fake IT workers with stolen IDs who infiltrated legitimate American companies, using their earnings to fund ballistic missile production and weapons of mass destruction, CBS News reported.
The North Korean workers allegedly posed as IT specialists, gained employment at powerful businesses, and sent the majority of their pay back to the regime, which amounted to hundreds of millions of dollars.
Additionally, the suspects stand accused of accessing internal data, using malware, and extorting employers.
Russian nationals were also reportedly involved as go-betweens, initiating financial transactions, laundering money, and assisting with fake documents.
One such intermediary, Vitold Viktorovich Obertas, processed almost $2 million in cryptocurrency conversions and at least $1.25 million in other currency transactions for North Korean officials since early 2025.
Treasury Secretary Scott Bessent issued a statement on X Wednesday, saying, “The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments.”
“Under President Trump’s leadership, Treasury will continue to use all available tools to protect U.S. businesses from these malicious activities and hold those responsible accountable,” he added.
The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments. Under President Trump’s leadership, Treasury will continue to use all available tools to protect U.S. businesses from these malicious activities and hold those responsible accountable.
— Treasury Secretary Scott Bessent (@SecScottBessent) October 28, 2026
Moreover, the Treasury Department said these financial fraudsters used artificial intelligence to transfer funding for the North Korean regime, according to Fox Business.
These sanctions are part of President Donald Trump’s nationwide crackdown on fraud, which has focused on government waste, universities, illegal immigration schemes, and corrupt practices by elected officials.
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The Daily Caller noted that North Korea fired ballistic missiles into the Sea of Japan on Thursday, only hours after the U.S. and other allied countries announced the aforementioned sanctions.
U.S. Indo-Pacific Command released a statement saying that, “The Democratic People’s Republic of Korea launched two ballistic missiles on October 29, 2026.”
“We are aware of the missile launches and are consulting closely with our allies and partners,” the statement continued.
“Based on current assessments, this event does not pose an immediate threat to U.S. personnel or territory, or to our allies. The United States remains committed to the defense of the U.S. homeland and our allies in the region.”
A spokesman for South Korea’s Defense Ministry added, “The South Korean military has strengthened its surveillance and vigilance against the possibility of further launches.”
The spokesman said that South Korea, Japan, and the United States are working to share intelligence and “maintain a firm readiness posture.”
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