Australia sanctions 2 over North Korean fake IT workers scheme for nuclear funds

Australia said on Friday it had sanctioned two North Korean individuals and companies over the use of “fraudulent” IT workers and cybercrime to earn cash for the isolated nuclear-armed state.

The two men are alleged to be key operators in Pyongyang’s cybercriminal activities overseas, estimated by analysts to bring in billions for the country’s weapons programme.

“The North Korean entities and individuals sanctioned today facilitate North Korea’s use of fraudulent IT workers to raise revenue for the regime’s nuclear weapons and ballistic missile programmes,” the office of Australia’s foreign minister Penny Wong said.

North Korea faces a slew of international sanctions over its weapons and nuclear programmes.

It stands accused of seeking to skirt those sanctions by employing thousands of IT workers impersonating nationals of other countries to obtain work and income on online platforms and remit the money to government agencies. North Korea has furiously denied those allegations, deriding them as efforts to “tarnish” its image.

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The United States and allies warned in July that North Korean workers were using AI tools to further obscure their true identities.

And last month, New Zealand’s cybersecurity agency revealed a North Korean IT worker had used a fake identity to obtain remote work with a company in that country and then threatened to release sensitive information when exposed.

The two men sanctioned by Australia on Friday – Yu Pu-ung and Sim Hyon-sop – have already been named by the US government.

In 2024, the US Treasury described the China-based Yu as a “linchpin” of North Korea’s illicit moneymaking activities and warned he was “skilled at employing various schemes to avoid detection”.

Sim – reportedly a top “shadow banker” for the regime – is wanted by the FBI, with a US$5 million reward for information leading to the arrest for his role in helping transfer funds in and out of North Korea.