Identity Theft, Telework, & Corporate Espionage

By: Nadezhda Spiridonova and Maureen Abbey Scorese

Companies are constantly facing new types of fraud as criminals and criminal organizations adapt their modus operandi to evade detection and law enforcement efforts. The number of financial fraud claims is rising exponentially as criminals take advantage of technology and AI to perpetuate fraud in new ways that make it much harder to discern as fraudulent.

Earlier this year, the United States Federal Bureau of Investigation (FBI) issued a Public Service Announcement (PSA) to address new threats to businesses that use remote employees. 

As per the PSA, individuals from North Korea have been stealing people’s identities and creating elaborate online profiles. This includes employment scams with stolen social security numbers, fake LinkedIn accounts, and phony resumes; all designed to generate revenue for the North Korean regime and its illicit programs.

How the Scam Operates

Typically, the scam functions by leveraging AI tools to obtain telework employment positions and gain access to a company’s network or confidential information.

The imposter then accesses to a company’s computer system and engages in corporate espionage, resulting in severe economic loss to the U.S. company. 

Protecting Corporate Hardware

The North Koreans are using intermediaries in the U.S. to receive company-issued laptops. The intermediaries then enable the laptops to allow the scammers to remotely access the devices and computer systems from overseas, while tricking the system into thinking they are in the United States.

Conclusion

Criminals are using technology and AI to their advantage. It is important for companies to implement safeguards in their hiring practices, when making decisions on financial payments, and when providing access to the company’s confidential information to a new employee.

 If you believe you may have been a victim of fraud, need help developing your company’s fraud safeguards, or have case specific questions, contact the trusted Chugh, LLP corporate attorneys.