Trump Admin Targets Communist Weapons Scheme Allegedly Defrauding US Firms

The Trump administration slapped sanctions on six individuals and two companies Thursday for allegedly assisting North Korea in running government-orchestrated information technology (IT) worker schemes that “targeted” U.S. companies.

These alleged global IT worker schemes systematically defrauded American businesses and generated revenue to help fund North Korea’s weapons of mass destruction (WMD) programs, including nearly $800 million in 2024 alone, according to an announcement from the Treasury Department’s Office of Foreign Assets Control (OFAC). 

“The North Korean regime targets American companies through deceptive schemes carried out by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments,” Treasury Secretary Scott Bessent said in a statement. “Under President Trump’s leadership, Treasury will continue to follow the money in order to protect U.S. businesses from these malicious activities and ensure those responsible are held accountable.”

IT teams facilitated by North Korea often utilize fraudulent documentation, stolen identities and fake personas in order to hide their true identities and secure employment at legitimate companies, including those based in the U.S., per the news release. Moreover, the North Korean government reportedly allocates most of the wages earned by these overseas IT workers, which produces hundreds of millions of dollars to support the regime’s WMD and ballistic missile programs. This violates U.S. and United Nations sanctions, according to the Treasury Department.

Thursday’s sanctions