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North Korean operative reveals the inner workings of the IT scam

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For more than a decade, Kim Ji-min served as an IT worker inside a vast global scheme devised by North Korea’s authoritarian leadership to evade crushing financial sanctions. Kim has since defected to South Korea. Now, he is sharing his experience as a cog in the IT worker conspiracy employed by the Democratic People’s Republic of Korea to amass billions to fund its weapons of mass destruction program

The North Korean IT worker scheme has become one of the most urgent cybersecurity issues among global Fortune 500 businesses. Hundreds of companies have unknowingly hired thousands of North Korean IT workers in recent years, giving them access to personal information and intellectual property and paving the way for U.S. dollars to be used as a funding source for DPRK authoritarian ruler Kim Jong Un’s nuclear ambitions. U.S. authorities are publicizing the issue with joint warnings from the FBI and Department of Justice, alongside top cyber experts who have chosen to speak out about the threat. 

U.S. Attorney for the Northern District of Georgia Theodore S. Hertzberg told Fortune the office announced charges against four North Korean IT workers this week as part of an orchestrated publicity campaign to encourage business and tech leaders to better understand the threat they’re facing. 

“It is not uncommon for business owners to meet potential partners and employees online,” said Hertzberg in a statement. “But companies that work in this space would be wise to hire Americans and to thoroughly vet all potential employees and partners, preferably in person.”

Inside the IT worker operation

Kim was one among thousands of trained software developers deployed outside the DPRK to get lucrative jobs in tech using stolen identities. The delegations of workers are then forced to send the majority of their earnings to the government—part of a global money-making and laundering empire that generates up to $600 million a year, according to UN estimates, not including the billions stolen in crypto heists. 

Kim told Fortune his minimum earnings target was $5,000 per month up until the COVID-19 pandemic led to a boom in the remote IT sector. Once remote-work offerings exploded, his target amount doubled. Typically, the money was converted to U.S. dollars at local work sites overseas and then delivered either directly to North Korean headquarters or to a representative of the headquarters abroad. 

“My primary job was to earn foreign currency through IT services,” said Kim, according to an email translation of his interview responses. “However, during the COVID-19 pandemic, I often received additional instructions to intensify regime propaganda online as well.”

Kim’s interview was facilitated by People for Successful Corean Reunification (PSCORE), which provided translation and access. PSCORE was founded in 2006 by Kim Young-Il, a North Korean defector, and the group has worked with thousands of other former DPRK citizens who have since fled the country. PSCORE retains UN Economic and Social Council consultative status, which allows it to participate in UN meetings and research. 

Kim is living in South Korea under an alias to avoid endangering his friends and family, who could be targeted by the DPRK government in retaliation for his actions and interviews with U.S. media. That chilling calculus keeps most North Korean IT workers in line, PSCORE secretary general Bada Nam told Fortune

According to Nam, the regime’s reach and control extends far beyond individual IT and other workers stationed abroad. 

“Not only their immediate family members, but even distant relatives could get punished if a relative escapes from North Korea,” said Nam. “They are sending the message to the entire people of North Korea, ‘If any family member defects from North Korea or betrays their fatherland, then they will get punished.’”

Those who remain behind are often under constant and severe surveillance, Nam explained. DPRK government workers might be following a defector’s family members in addition to entire neighborhoods. The consequences of a defection can be devastating.

“In some cases, they send the entire family to political prison camp and they cannot get out of that camp for their entire life,” he said. 

Despite the risk, Kim has chosen to break his silence by answering questions from select news outlets. 

Deception Tactics

Kim’s method of disguising his true identity was elaborate and involved the use of popular tech networking and job websites. 

“I used platforms like Facebook, LinkedIn, Freelancer.com, and Upwork.com to pose as a client and post project listings,” Kim said. “I would then contact developers, negotiate with them—including handling payment—and gain access to their accounts.”

Using the identities of those who engaged with him on those platforms, whether they were European or American, Kim would then disguise himself using the identities of those who had sent bids to him. Thus, he was using real, verified identities in order to conceal his own, he said. Kim posted on other platforms as well, including Freelance.com, Guru.com, and Toptal, he said.

In his work, Kim received and carried out development orders from multiple American companies, with his main area of work focused on e-commerce shopping sites and occasionally mobile app development. In Europe, he worked on developing a healthcare app. Kim declined to name any specific companies because he said sharing specifics could lead to inferences about his personal information.   

While Americans in the U.S. have been indicted for knowingly taking part in the North Korean IT worker scheme by renting out their identities or hosting laptop farms in their homes, in Kim’s experience, the Americans who were involved in the scheme were unwitting. He pushed back against a question referring to Americans involved in the scheme as “accomplices.” 

“It would be more appropriate to say they were simply clients who placed orders for work,” he said. “They had no idea we were from North Korea.”

He described the conditions he worked under as “relatively decent.” The workspace and sleeping quarters were “sufficiently spacious” and the food conditions were “good.” But work could also turn brutal if the IT workers weren’t delivering on their financial targets.

“We were required to work a minimum of 10 hours a day, and if we failed to meet the assigned targets, we were sometimes forced to work more than 18 hours a day,” he said. 

He denied ever being asked to share information with DPRK workers who engaged in crypto heists and claims he had “no contact whatsoever with individuals involved in those activities.”

Direct contact with Kim’s family wasn’t possible, he said. During phone calls between his overseas team and the headquarters in North Korea, the IT workers would occasionally get brief updates about major family issues, although in principle, sharing personal family matters was forbidden. 

“We could receive information if it was truly serious and deemed necessary,” he said. “Conversely, in cases where something significant happened abroad—such as an accident or serious illness—the information could also be relayed back to our families through North Korean headquarters.”

Life after the Scheme

Kim’s decision to defect comes at an enormous personal cost, in addition to the harsh reality that his family and even distant relatives could be in danger because of him. Nam said that fear—coupled with extreme personal risk—creates a psychological trap that stops most DPRK citizens from even thinking about escaping. If families attempt to contact defectors, it can become another tool for DPRK control. 

“The regime could pressure the family to contact the defector in South Korea, asking them for small favors,” said Nam. “If the defector responds, sending any information can slowly turn into a situation where they are being used as an unwilling source of information.”

Nam said some defectors have been recaptured afterward because they contacted family members. 

For now, Kim remains in South Korea facing an uncertain future. He is skilled in IT so he plans to continue working in the field, but the psychological scars remain. 

“As for how I feel—it’s a mix of the joy of gaining freedom and the sorrow of losing my family,” said Kim. “From my perspective, it feels like I’ve lost more than I’ve gained.”

He estimates there are thousands of IT workers operating the way he was, some overseas and others inside North Korea. 

In response to a request, a Meta spokesperson declined to comment. LinkedIn directed Fortune to its update on fighting fake accounts. Upwork directed Fortune to its approach to state-sponsored threats. Freelance.com., Freelancer.com, Guru.com, and Toptal did not immediately respond to requests for comment.



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AI labs like Meta, Deepseek, and Xai earned worst grades possible on an existential safety index

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A recent report card from an AI safety watchdog isn’t one that tech companies will want to stick on the fridge.

The Future of Life Institute’s latest AI safety index found that major AI labs fell short on most measures of AI responsibility, with few letter grades rising above a C. The org graded eight companies across categories like safety frameworks, risk assessment, and current harms.

Perhaps most glaring was the “existential safety” line, where companies scored Ds and Fs across the board. While many of these companies are explicitly chasing superintelligence, they lack a plan for safely managing it, according to Max Tegmark, MIT professor and president of the Future of Life Institute.

“Reviewers found this kind of jarring,” Tegmark told us.

The reviewers in question were a panel of AI academics and governance experts who examined publicly available material as well as survey responses submitted by five of the eight companies.

Anthropic, OpenAI, and GoogleDeepMind took the top three spots with an overall grade of C+ or C. Then came, in order, Elon Musk’s Xai, Z.ai, Meta, DeepSeek, and Alibaba, all of which got Ds or a D-.

Tegmark blames a lack of regulation that has meant the cutthroat competition of the AI race trumps safety precautions. California recently passed the first law that requires frontier AI companies to disclose safety information around catastrophic risks, and New York is currently within spitting distance as well. Hopes for federal legislation are dim, however.

“Companies have an incentive, even if they have the best intentions, to always rush out new products before the competitor does, as opposed to necessarily putting in a lot of time to make it safe,” Tegmark said.

In lieu of government-mandated standards, Tegmark said the industry has begun to take the group’s regularly released safety indexes more seriously; four of the five American companies now respond to its survey (Meta is the only holdout.) And companies have made some improvements over time, Tegmark said, mentioning Google’s transparency around its whistleblower policy as an example.

But real-life harms reported around issues like teen suicides that chatbots allegedly encouraged, inappropriate interactions with minors, and major cyberattacks have also raised the stakes of the discussion, he said.

“[They] have really made a lot of people realize that this isn’t the future we’re talking about—it’s now,” Tegmark said.

The Future of Life Institute recently enlisted public figures as diverse as Prince Harry and Meghan Markle, former Trump aide Steve Bannon, Apple co-founder Steve Wozniak, and rapper Will.i.am to sign a statement opposing work that could lead to superintelligence.

Tegmark said he would like to see something like “an FDA for AI where companies first have to convince experts that their models are safe before they can sell them.

“The AI industry is quite unique in that it’s the only industry in the US making powerful technology that’s less regulated than sandwiches—basically not regulated at all,” Tegmark said. “If someone says, ‘I want to open a new sandwich shop near Times Square,’ before you can sell the first sandwich, you need a health inspector to check your kitchen and make sure it’s not full of rats…If you instead say, ‘Oh no, I’m not going to sell any sandwiches. I’m just going to release superintelligence.’ OK! No need for any inspectors, no need to get any approvals for anything.”

“So the solution to this is very obvious,” Tegmark added. “You just stop this corporate welfare of giving AI companies exemptions that no other companies get.”

This report was originally published by Tech Brew.



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Hollywood writers say Warner takeover ‘must be blocked’

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Hollywood writers, producers, directors and theater owners voiced skepticism over Netflix Inc.’s proposed $82.7 billion takeover of Warner Bros. Discovery Inc.’s studio and streaming businesses, saying it threatens to undermine their interests.

The Writers Guild of America, which announced in October it would oppose any sale of Warner Bros., reiterated that view on Friday, saying the purchase by Netflix “must be blocked.”

“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the guild said in an emailed statement. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”

The worries raised by the movie and TV industry’s biggest trade groups come against the backdrop of falling movie and TV production, slack ticket sales and steep job cuts in Hollywood. Another legacy studio, Paramount, was sold earlier this year.

Warner Bros. accounts for about a fourth of North American ticket sales — roughly $2 billion — and is being acquired by a company that has long shunned theatrical releases for its feature films. As part of the deal, Netflix co-CEO Ted Sarandos has promised Warner Bros. will continue to release moves in theaters.

“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” Michael O’Leary, chief executive officer of the theatrical trade group Cinema United, said in en emailed statement Friday. “The negative impact of this acquisition will impact theaters from the biggest circuits to one-screen independents.”

The buyout of Warner Bros. by Netflix “would be a disaster,” James Cameron, the director of some of Hollywood’s highest-grossing films in history including Titanic and Avatar, said in late November on The Town, an industry-focused podcast. “Sorry Ted, but jeez. Sarandos has gone on record saying theatrical films are dead.”

On a conference call with investors Friday, Sarandos said that his company’s resistance to releasing films in cinemas was mostly tied to “the long exclusive windows, which we don’t really think are that consumer friendly.”

The company said Friday it would “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”

On the call, Sarandos reiterated that view, saying that, “right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros.” 

Competition from online outfits like YouTube and Netflix has forced a reckoning in Hollywood, opening the door for takeovers like the Warner Bros. deal announced Friday. Media giants including Comcast Corp., parent of NBCUniversal, are unloading cable-TV networks like MS Now and USA, and steering resources into streaming. 

In an emailed note to Warner Bros. employees on Friday, Chief Executive Officer David Zaslav said the board’s decision to sell the company “reflects the realities of an industry undergoing generational change in how stories are financed, produced, distributed, and discovered.”

The Producers Guild of America said Friday its members are “rightfully concerned about Netflix’s intended acquisition of one of our industry’s most storied and meaningful studios,” while a spokesperson for the Directors Guild of America raised concerns about future pay at Warner Bros.

“We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company,” the Directors Guild said.

In September, the DGA appointed director Christopher Nolan as its president. Nolan has previously criticized Netflix’s model of releasing films exclusively online, or simultaneously in a small number of cinemas, and has said he won’t make movies for the company.

The Screen Actors Guild said Friday that the transaction “raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.”

Oscar winner Jane Fonda spoke out on Thursday before the deal was announced. 

“Consolidation at this scale would be catastrophic for an industry built on free expression, for the creative workers who power it, and for consumers who depend on a free, independent media ecosystem to understand the world,” the star of the Netflix series Grace and Frankie wrote on the Ankler industry news website.

Netflix and Warner Bros. obviously don’t see it that way. In his statement to employees, Zaslav said “the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.”



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4 times in 7 seconds: Trump calls Somali immigrants ‘garbage’

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He said it four times in seven seconds: Somali immigrants in the United States are “garbage.”

It was no mistake. In fact, President Donald Trump’s rhetorical attacks on immigrants have been building since he said Mexico was sending “rapists” across the border during his presidential campaign announcement a decade ago. He’s also echoed rhetoric once used by Adolf Hitler and called the 54 nations of Africa “s—-hole countries.” But with one flourish closing a two-hour Cabinet meeting Tuesday, Trump amped up his anti-immigrant rhetoric even further and ditched any claim that his administration was only seeking to remove people in the U.S. illegally.

“We don’t want ‘em in our country,” Trump said five times of the nation’s 260,000 people of Somali descent. “Let ’em go back to where they came from and fix it.” The assembled Cabinet members cheered and applauded. Vice President JD Vance could be seen pumping a fist. Defense Secretary Pete Hegseth, sitting to the president’s immediate left, told Trump on-camera, “Well said.”

The two-minute finale offered a riveting display in a nation that prides itself as being founded and enriched by immigrants, alongside an ugly history of enslaving millions of them and limiting who can come in. Trump’s U.S. Immigration and Customs Enforcement raids and deportations have reignited an age-old debate — and widened the nation’s divisions — over who can be an American, with Trump telling tens of thousands of American citizens, among others, that he doesn’t want them by virtue of their family origin.

“What he has done is brought this type of language more into the everyday conversation, more into the main,” said Carl Bon Tempo, a State University of New York at Albany history professor. “He’s, in a way, legitimated this type of language that, for many Americans for a long time, was seen as outside the bounds.”

A question that cuts to the core of American identity

Some Americans have long felt that people from certain parts of the world can never really blend in. That outsider-averse sentiment has manifested during difficult periods, such as anti-Chinese fear-mongering in the late 19th century and the imprisonment of some 120,000 Japanese Americans during World War II.

Trump, reelected with more than 77 million votes last year, has launched a whole-of-government drive to limit immigration. His order to end birthright citizenship — declaring that children born to parents who are in the United States illegally or temporarily are not American citizens despite the 14th Amendment — is being considered by the Supreme Court. He has largely frozen the country’s asylum system and drastically reduced the number of refugees it is allowed to admit. And his administration this week halted immigration applications for migrants from 19 travel-ban nations.

Immigration remains a signature issue for Trump, and he has slightly higher marks on it than on his overall job approval. According to a November AP-NORC poll, roughly 4 in 10 adults — 42% — approved of how the president is handling the issue, down from about half who approved in March. And Trump has pushed his agenda with near-daily crackdowns. On Wednesday, federal agents launched an immigration sweep in New Orleans,

There are some clues that Trump uses stronger anti-immigration rhetoric than many members of his own party. A study of 200,000 speeches in Congress and 5,000 presidential communications related to immigration between 1880 and 2020 found that the “most influential” words on the subject were terms like “enforce,” “terrorism” and “policy” from 1973 through Trump’s first presidential term.

The authors wrote in the Proceedings of the National Academy of Sciences that Trump is “the first president in modern American history to express sentiment toward immigration that is more negative than the average member of his own party.” And that was before he called thousands of Somalis in the U.S. “garbage.”

The U.S. president, embattled over other developments during the Cabinet meeting and discussions between Russian President Vladimir Putin and U.S. envoys, opted for harsh talk in his jam-packed closing.

Somali Americans, he said, “come from hell” and “contribute nothing.” They do “nothing but bitch” and “their country stinks.” Then Trump turned to a familiar target. Rep. Ilhan Omar, D-Minn., an outspoken and frequent Trump critic, “is garbage,” he said. “Her friends are garbage.”

His remarks on Somalia drew shock and condemnation from Minneapolis to Mogadishu.

“My view of the U.S. and living there has changed dramatically. I never thought a president, especially in his second term, would speak so harshly,” Ibrahim Hassan Hajji, a resident of Somalia’s capital city, told The Associated Press. “Because of this, I have no plans to travel to the U.S.”

Omar called Trump’s “obsession” with her and Somali-Americans “creepy and unhealthy.”

“We are not, and I am not, someone to be intimidated,” she said, “and we are not gonna be scapegoated.”

Trump’s influence on these issues is potent

But from the highest pulpit in the world’s biggest economy, Trump has had an undeniable influence on how people regard immigrants.

“Trump specializes in pushing the boundaries of what others have done before,” said César Cuauhtémoc García Hernández, a civil rights law professor at Ohio State University. “He is far from the first politician to embrace race-baiting xenophobia. But as president of the United States, he has more impact than most.” Domestically, Trump has “remarkable loyalty” among Republicans, he added. “Internationally, he embodies an aspiration for like-minded politicians and intellectuals.”

In Britain, attitudes toward migrants have hardened in the decade since Brexit, a vote driven in part by hostility toward immigrants from Eastern Europe. Nigel Farage, leader of the hard-right Reform U.K. party, has called unauthorized migration an “invasion” and warned of looming civil disorder.

France’s Marine Le Pen and her father built their political empire on anti-immigrant language decades before Trump entered politics. But the National Rally party has softened its rhetoric to win broader support. Le Pen often casts the issue as an administrative or policy matter.

In fact, what Trump said about people from Somalia would likely be illegal in France if uttered by anyone other than a head of state, because public insults based on a group’s national origin, ethnicity, race or religion are illegal under the country’s hate speech laws. But French law grants heads of state immunity.

One lawyer expressed concerns that Trump’s words will encourage other heads of state to use similar hate speech targeting people as groups.

“Comments saying that a population stinks — coming from a foreign head of state, a top world military and economic power — that’s never happened before,” said Paris lawyer Arié Alimi, who has worked on hate speech cases. “So here we are really crossing a very, very, very important threshold in terms of expressing racist … comments.”

But the “America first” president said he isn’t worried about others think of his increasingly polarizing rhetoric on immigration.

“I hear somebody say, ‘Oh, that’s not politically correct,’” Trump said, winding up his summation Tuesday. “I don’t care. I don’t want them.”

___

Contributing to this report are Associated Press writers Will Weissert and Linley Sanders in Washington, John Leicester in Paris, Jill Lawless in London, Evelyne Musambi in Nairobi, Kenya, and Omar Faruk in Mogadishu.



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