A bold foreign operation aimed at former U.S. federal employees has been uncovered, with investigators linking fake recruiting companies to a China technology firm. The campaign involved sham listings for high-level consulting and research roles, raising fears about how China continues to gather sensitive information through deceptive means.
The Foundation for Defense of Democracies traced four false companies to the same IP address used by Smiao Intelligence, a Chinese internet company. These sites shared digital infrastructure and offered job postings meant to attract those with government experience.
🔔‼️A secret Network of Federal Employees Resists Trump Administration.
"Along side with this, new US intelligence also shows that the Chinese regime is attempting to recruit disgruntled US federal employees".
➡️ https://t.co/dnfDaZrggq pic.twitter.com/yM8DQsP5vW— The Knight News (@Knight981311) March 8, 2025
National security analyst Max Lesser said the scheme used tactics common in Chinese spy playbooks — presenting as legitimate firms to gain the trust of knowledgeable Americans. The effort appeared designed to take advantage of workers recently removed from sensitive federal positions.
RiverMerge Strategies advertised itself as a global risk firm but had no physical presence at its listed locations. Its U.S. phone was out of service, and the Chinese number matched one used by Si Xun Software, a company linked to Chinese military cyber activities.
Another group in the scheme, Wavemax Innovation, posted an ad on Craigslist that targeted individuals recently laid off from U.S. agencies. The ad called for candidates with experience in project coordination and research. The company’s address, when visited, was simply an undeveloped piece of land.
After initial scrutiny, all job postings vanished. LinkedIn also confirmed it had removed the firms’ profiles for violating platform rules. Reporters were unable to make contact with any of the entities involved.
This type of digital deception is not new. Past efforts by Chinese operatives have used dummy recruiters to pay Americans for reports that were later used by Chinese officials. Victims were often unaware they were participating in an intelligence operation.
A spokesperson from the Chinese Embassy denied any connection to the network. Meanwhile, the White House called the effort part of a broader pattern of espionage exploiting U.S. openness.
