Justice Dept. makes arrests in North Korean identity theft scheme involving thousands of IT workers

The Justice Department announced multiple arrests in a series of stolen identity theft cases that are reportedly part of a scheme that generates proceeds for North Korea its weapons program.

The fraud scheme is a way for heavily sanctioned North Korea, which is cut off from the U.S. financial system, to take advantage of a "toxic brew" of converging factors, including a high-tech labor shortage in the U.S. and the proliferation of remote telework, Marshall Miller, the Justice Department's principal associate deputy attorney general, said in an interview.

The Justice Department says the cases are part of a broader strategy to not only prosecute individuals who enable the fraud but also to build partnerships with other countries and to warn private-sector companies of the need to be vigilant — and not duped — about the actual identities of the people they're hiring.