Former Minnesota Waitress Pleads Guilty in North Korea Laptop Farm Fraud Scheme
Summary
Federal prosecutors have revealed that a former Minnesota waitress unknowingly aided North Korean operatives in stealing $17.1 million from U.S. companies through a remote work scheme. The scheme involved a ‘laptop farm’ managed by Christina Chapman, who operated from her home and coordinated the use of stolen U.S. identities to allow North Koreans to work as legitimate tech employees.
Key Details of the Scheme
Christina Chapman, a former Minnesota waitress, was recruited via LinkedIn in 2020 to serve as ‘the U.S. face’ for overseas IT workers. She operated a ‘laptop farm’ from her home, managing dozens of computers that allowed North Koreans using stolen U.S. identities to work as legitimate tech employees. This scheme allowed North Korean workers to access the devices daily from overseas, with some maintaining jobs for months or years at major American corporations.
FBI Estimates
The FBI estimates that this broader infiltration involves thousands of North Korean workers generating hundreds of millions annually for the sanctions-hit regime. The scheme’s scale suggests it is part of a larger, coordinated effort to bypass international sanctions and covertly fund North Korea’s economy through cybercrime.
Chapman’s Role and Legal Consequences
Chapman earned just under $177,000 before the FBI raided her Arizona operation in October 2023, seizing over 90 computers. She pleaded guilty in February to wire fraud, identity theft, and money laundering charges, facing up to nine years in prison at her July sentencing.
Broader Implications
This case highlights the growing threat of cybercrime involving state-sponsored actors and the potential for individuals to unknowingly aid in such schemes. It underscores the need for increased cybersecurity measures and stricter identity verification processes for remote work operations.