A network of fake companies attempting to recruit laid-off U.S. federal government workers has been identified as a front for a Chinese technology firm’s recruitment operation. It could pose significant risks to American national security.
According to a new report released by the Foundation for Defense of Democracies (FDD), a total of four fake companies make up the network, and all share the same IP address as a real Chinese Internet services company called Smiao Intelligence.
Foundation for Defense of Democracies senior analyst Max Lesser claims the operation is likely “part of a broader network of fake consulting and headhunting firms targeting former government employees and AI researchers.” Concerningly, the front companies advertised on websites like LinkedIn, telling prospective candidates that they were headhunters for jobs at think tanks and academic institutions.
Reuters investigated the companies and found little information, noting that phone calls and emails went unanswered. The recruitment listings on LinkedIn were also removed.
RiverMerge Strategies is one of the companies named by Reuters and appears to have offices in Colorado and Singapore. While the company’s U.S. phone number is no longer in service, it also listed a Chinese number linked to the IT company Si Xun Software Co., Ltd. Notably, Si Xun Software appears to have ties to the Chinese military, specifically in the cyber security space.
The Singapore address turned out to be a hostel, while the Colorado address led to a business services company. Lesser said on the network, “What makes this activity significant is that the network seeks to exploit the financial vulnerabilities of former federal workers affected by recent mass layoffs.”
The Chinese Embassy in Washington, D.C., has denied knowing anything about the companies’ activities, but competitor states like China and Russia have sought intelligence from U.S. government employees for many years.
Chinese spying on America became more common under the prior Biden-Harris regime, according to a report released last October. Several high-profile officials and others have been arrested in recent years over allegations of spying for the communist country, including ex-CIA officer Alexander Yuk Ching Ma, who was sentenced to 10 years in prison last September.
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