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Chinese-Linked Recruitment Network Targets Laid-Off U.S. Federal Workers

Investigations reveal fake consulting firms exploiting financial vulnerabilities of former government employees, raising national security concerns.

A view of a vacant plot of land at 6 Marina Green in Singapore March 25, 2025. REUTERS/Edgar Su
Max Lesser, a senior analyst on emerging threats at the Foundation for Defense of Democracies poses for a portrait at an office in Washington, D.C., U.S., March 24, 2025. REUTERS/Carlos Barria
A view of a vacant plot of land at 6 Marina Green in Singapore March 25, 2025. REUTERS/Edgar Su
Max Lesser, a senior analyst on emerging threats at the Foundation for Defense of Democracies poses for a portrait at an office in Washington, D.C., U.S., March 24, 2025. REUTERS/Carlos Barria

Overview

  • A network of companies tied to a Chinese tech firm has been found attempting to recruit recently laid-off U.S. federal employees through fake consulting firms and deceptive job ads.
  • The recruitment network includes four companies connected to Smiao Intelligence, a Chinese internet services company, though direct links to the Chinese government remain unconfirmed.
  • The network exploits the financial struggles of former federal workers, some of whom were laid off without receiving standard exit briefings, leaving them more vulnerable to foreign recruitment efforts.
  • The FBI has warned that Chinese intelligence often uses fake consulting firms to target current and former U.S. government employees, a tactic resembling the 2020 Jun Wei Yeo case.
  • U.S. officials are urging former federal workers to remain vigilant and protect sensitive information as investigations into the network's operations continue.