A 50-year-old Arizona woman has been sentenced to more than eight years in federal prison for orchestrating a wide-reaching fraud scheme that helped North Korean operatives pose as American workers and secure remote IT jobs with hundreds of U.S. companies, federal officials announced Thursday.
Christina Chapman pleaded guilty earlier this year to charges including conspiracy to commit wire fraud and aggravated identity theft. According to the Department of Justice, Chapman ran a so-called "laptop farm" out of her home, hosting company-issued devices on behalf of foreign IT workers pretending to be based in the United States.
Investigators say Chapman used stolen identities of at least 68 Americans and helped facilitate job placements for North Korean operatives at over 300 U.S. companies, including several Fortune 500 firms. The scheme generated more than $17 million in illicit earnings, which authorities believe may have supported North Korea's nuclear weapons program.
In a 2023 raid, authorities found more than 90 laptops at Chapman’s residence. She also forged payroll records and redirected funds through her U.S. bank accounts to individuals overseas. Devices were shipped to locations abroad, including a Chinese city near the North Korean border.
The DOJ described the operation as one of the largest known North Korean IT worker fraud schemes. While the companies involved were not named, officials revealed that attempts were made to breach two U.S. government agencies.
Experts warn that the case highlights a growing threat. Many North Korean IT workers, some with ties to state-sponsored hacking groups, are infiltrating Western companies under false identities. A 2024 White House report estimated that cybercrime and illicit tech labor have funded up to half of North Korea’s missile development.
“North Korea has weaponized its tech talent and created the ultimate insider threat,” said Michael Barnhart, a North Korea expert at Google-owned cybersecurity firm Mandiant.
Authorities continue to urge companies to strengthen identity verification and cybersecurity practices, especially in remote hiring.
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