JOHN YANG: Tonight on PBS News Weekend, on paper they seem like ideal job candidates, but in reality, they're North Korean operatives.

Complex tech scams are infiltrating the American workplace and helping fund North Korean weapons programs.

Then, with the nation's 250th birthday a year away, celebrations have begun.

We look at the innovations that have shaped America and where the country goes next.

MAN: There was no time at which we stopped innovating and changing, and we have to go and use those examples to help us in a conversation today about what we can do as citizens to do better.

JOHN YANG: and what's behind the boom in secondhand shopping as more Americans turn to thrifting.

(BREAK) JOHN YANG: Good evening.

I'm John Yang.

Across the hill country of Central Texas today, rescue workers are urgently searching for the missing after a wall of water rushed through an area known as Flash Flood Alley in the early morning hours of July 4th.

At least 32 people are dead.

Still unaccounted for are 27 children who are attending a Christian summer camp on the Guadalupe River.

Officials say it's unclear how many are missing from other locations.

Ali Rogin has our report.

ALI ROGIN (voice-over): Months worth of torrential rain fell in just a few hours in Kerr County, leaving houses and trees submerged in the flood waters.

Nearby, The National Weather Service tracked the Guadalupe River as it swelled 22 feet in two hours.

At 29.5 feet, the gauge failed.

The rushing waters dumped debris on roads, which made it hard for emergency vehicles to get through.

Crews worked overnight to locate people who were still unaccounted for.

PIERS BOYETT, Flood Survivor: People were screaming.

ALI ROGIN (voice-over): Others, like young camper Piers Boyett, were left to their own devices to escape the fast moving waters.

PIERS BOYETT: The flood started getting bigger and it was going up to we had bunk beds in our cabins and it was going up to the top bunk and we had one choice and we had to swim out of our cabins.

ALI ROGIN (voice-over): A number of youth camps dot the area, including Camp Mystic, an all-girls Christian summer camp along the river.

Searchers used helicopters to rescue survivors there, but more than two dozen of its campers are still missing.

At another camp, Heart of the Hills, the director, Jane Ragsdale, died in the flooding.

Officials in Texas vowed to keep on searching.

LARRY LEITHA, Kerr County Sheriff: We will not stop till every single person is found.

We've got all the resources we need.

We're here for the long haul.

ALI ROGIN (voice-over): For now, Central Texas remains under a flood watch as more rain is forecast tonight.

For PBS News Weekend, I'm Ali Rogin.

JOHN YANG: The Carolinas are also bracing for potential flash flooding as Tropical Storm Chantal approaches the coastline.

The National Hurricane Center predicts the storm will produce moderate to heavy rainfall, possibly triggering flooding, especially in urban areas.

Over the next several days life threatening surf and rip currents are expected from North Florida up to the mid-Atlantic states.

In Southern California, dangerously dry conditions have fueled the Madre Fire.

The wildfire has charred nearly 80,000 acres near Los Padres National Forest in San Luis Obispo County.

The massive blaze is the largest in the state so far this year and is only 10 percent contained.

The cause of the fire is under investigation.

And Elon Musk says he's formed a new U.S. political party.

The world's richest man says both Republicans and Democrats are bankrupting the country.

He said today the America Party is formed to give you back your freedom.

Just yesterday, President Trump signed his signature tax and spending cut bill, Musk opposed it because it's projected to add trillions of dollars to the national debt.

Still to come on PBS News Weekend, 250 years of American innovation, what we've accomplished and where we're heading.

And more Americans are turning to thrifting as economic uncertainty looms.

(BREAK) JOHN YANG: This week federal prosecutors charged four North Korean nationals with scheming to get hired by a U.S. company as remote workers and then steal nearly $1 million in cryptocurrency.

It's a relatively new North Korean threat, operatives using fake IDs and credentials to infiltrate American businesses.

Freelance investigative reporter Bobbie Johnson explained how and why they're doing it in a Wired magazine article headlined North Korea stole your job.

Bobbie, it's more than jobs that North Korea is after.

Why are they doing this?

BOBBIE JOHNSON, Freelance Investigative Journalist: So the reason for this scam is really to earn money from well compensated jobs in the U.S. and in the west and send it straight back to Kim Jong Un and his regime to fund various things from the nuclear weapons program to his personal slush fund and other government operations.

North Korea is really under pressure because of sanctions, so they can't make money through normal means, but really they also access computer systems, steal data to potentially plant malware or other dangerous software so that they can in the future do ransomware attacks, as we've seen in the past.

JOHN YANG: And what kind of jobs are we talking about and what kind of companies?

BOBBIE JOHNSON: As we all saw from the pandemic, a lot of jobs went remote, but one of the widest ranging is software engineering.

And so this is a place where people are very used to, over a long period of time, for hiring remote workers who get the job done.

They're coding websites, they're building apps, they're making, kind of doing all the IT and technical stuff.

And so these are really the target jobs for these operatives in job interviews.

JOHN YANG: How do these guys disguise who they really are and where they really are?

BOBBIE JOHNSON: Yeah, so we'll go through the scam a little bit.

So what they do is, first of all, they steal an identity so they get hold of someone's ID, their personal details, their Social Security number they make a resume up that says, you know, they know how to do this, they know how to do that, they know how to code websites, whatever it is that the jobs are requiring.

They'll then get on to an interview, talking over a video like this.

They'll use all manner of tools at their disposal to try and pass that interview.

So they will have an AI that generates a script for them.

So the interviewer asks a question, the AI is listening.

It will create a script that the person can then read back and sound relatively fluent or knowledgeable.

And particularly help them get over their difficulties with English.

Because these North Korean operatives, although they've been trained, they're not native English speakers, and they're not kind of who they say they are.

So they're trying to pretend.

But they'll also do stuff like if they're asked to do software tests or coding tests, they'll use AI or programmatic tools to kind of cheat those tests and look like they're better than they are.

And then when they get the job, that's when things get even more complicated and they have to bring in other people to help them succeed.

JOHN YANG: And help.

They need help on the state side, don't they?

There are all sorts of federal forms that have to be filled out and signed.

BOBBIE JOHNSON: So they're based usually in China or Russia, and they are kind of dialing in remotely to these jobs.

But that's a real red flag for folks, right?

So what they do instead is they kind of have a middleman who based in the U.S. maybe somewhere like Arizona or Minnesota or Illinois.

And they're just in an ordinary home.

But what they do is they kind of act as the point person.

And so they'll be filling out the forms.

They'll be opening or holding bank accounts that monies are being paid into that they can then disperse back to the North Koreans.

And crucially, what they do is they host what's known as a laptop farm.

So when an employer brings someone on, they'll send them a computer.

Here's your computer to do your work on.

What happens is that computer gets sent to the middleman, not to the North Korean, gets sent to the middleman, set up in their home, where they install tools that allow the North Korean to dial in from China or Russia into that laptop, and then kind of leapfrog and piggyback its way to the company's computer network.

So it never appears that they're dialing in from outside the country.

JOHN YANG: How big a problem is this?

And how long has it been going on?

BOBBIE JOHNSON: The size and scale of this is really one of the questions that is hardest to answer.

There are up to a dozen cases making their way through the U.S. courts at the moment.

But the real problem here, I think, is that nobody really knows the full extent.

So each of those cases is linked to maybe to dozens or even hundreds of different jobs that North Koreans are doing in the U.S. and that's just the tip of the iceberg.

So there could be many more.

JOHN YANG: These American helpers that you talked about, how do they get involved?

How are they recruited?

BOBBIE JOHNSON: This is one of the things that I think is hardest to know in some cases.

So they get maybe a message on LinkedIn or on social media or an email to them that asks them, somebody posing as a foreign company who needs some help.

It's unclear that at the beginning, the facilitators know that they're really taking part in a criminal action.

But by the time they are operating maybe 50, 60 laptops from their home and they're allowing people to dial in and they're sending money to China, it's very clear that they are deep in the criminal conspiracy.

JOHN YANG: Bobbie Johnson, freelance investigative reporter.

Thank you very much.

BOBBIE JOHNSON: Thanks for having me.

JOHN YANG: This week, President Trump went to Iowa in America's heartland to start the countdown to the nation's 250th Independence Day next year.

To mark the anniversary, the nonpartisan Center for the Study of the Presidency and Congress is looking at 250 years of U.S. innovation.

Earlier, I spoke with Glenn Nye, the Center's president and CEO.

Mr. Nye, why innovation?

Why pick that as the topic?

GLENN NYE, Center for the Study of the Presidency in Congress: Well, thanks for having me, John.

We started thinking about this project about a year ago.

We really wanted to root our work on this idea that the arc of the American story over the first 250 years really is a story of innovation and renewal.

The country was founded on somewhat innovative principles at the time, but they knew they wanted to create a more perfect union, a union that would get better and better over time as we refreshed, as we revisited, as we innovated on those founding moments.

JOHN YANG: So what sorts of innovations are we talking about?

GLENN NYE: Well, we're focused on a couple of sets of innovation, one in science and technology and the other in democracy.

And what we wanted to start with first, John, was we created a set of modules called Life in 1776, which we featured on our website.

All these aspects of just regular life back in 1776 that help us ground the beginning of the story.

But then we wanted to look at the arc of the 250 years since we wanted to look at innovations in science and technology.

So we started looking at things, everything from Benjamin Franklin's bifocals through to assembly lines and interchangeable parts, all the way through to modern technologies like cell phones and genetic sequencing and even ChatGPT.

And we created a visual timeline on our website where Americans can go and reflect on how these innovations have kind of built on each other over time.

Soon we're going to release a new timeline which is going to include innovations in democracy.

So taking the starting point back from the Constitution and the creation of the Bill of Rights and all the way through those changes over time, like the increase in voting rights and civil rights, some of the ones that are better known, but also some things that aren't as well known, like political primaries and partisan primaries, up to recent innovations where American states now are trying to figure out replacing those primaries with primaries that are open to all voters in an effort to try to innovate, to make our political system less dysfunctional and more representative.

JOHN YANG: Are there ways that the American character, both of the country and of the people, have affected or shaped the innovations?

And on the other side, have the innovations shape the American character?

GLENN NYE: I think they really have -- I think what we -- what one will get out of looking at our reflective timelines on innovation is this notion that America is pretty special and unique in many ways.

And I think what's really interesting about the United States is we've made investments that have benefited us greatly in education and access to information, and also a culture that just promotes risk taking and allows for innovations to be rewarded, whether it's through patents or commercial success or just celebration by the community.

JOHN YANG: Continual improvement the United States is a work in progress?

GLENN NYE: It is a work in progress.

And I think one of the most important lessons of this project that we're hoping Americans will take away is when we look back over this timeline of improvement, innovation, not simply to accept the greatness of the things that were done by our forebears and those who have created innovations over the 250-year arc, but actually to take that as a challenge to ourselves today as modern American citizens, to look back at the really amazing innovations, those that came before us made, and charge ourselves with the responsibility to take the project forward, to use that as inspiration to continue that series of innovations such that the United States could earn another amazing 250 years to the story.

JOHN YANG: The last big milestone, of course, was the bicentennial in 1976.

You talk about renewal, it came on the heels of Watergate, sort of a stress test for American democracy.

How would you assess the state of American democracy as we approach the 250th?

GLENN NYE: Well, I think stress test is a word that applied back in the 1976 era, and it's definitely a word that applies now.

There's a lot of anxiety and consternation over where our particularly arc of democracy has brought us and where it's going.

And I think there's good reason for concern and a lot of consternation and conversation about where we should go from here.

But it's our sincere hope that the consternation isn't the end of the story here.

You know, we don't want our story to end and stagnate at the 250th year of the story.

We want to take this as an opportunity to talk about those consternations, to visit with each other as Americans about where we can improve.

And also, I think it's important, the reflection over time of the history of our country reminds us that change is a regular part of the history of this country.

There was no time at which we stopped innovating and changing.

And we have to go and use those examples to help us in a conversation today about what we can do as citizens to do better.

And the good news is there are all sorts of ideas being tried throughout the country.

Science and technology, technological innovations are happening all the time, but also innovations in democracy.

And so it's on us as citizens to say, okay, things might not be perfect, but can we as a country pull ourselves together as we've done in the past, and make improvements and try to keep that arc of innovation and progress going?

And I think the reality is we absolutely can, as long as we take that responsibility as citizens to make those changes real.

JOHN YANG: Glenn Nye, the Center for the Study of Presidency in Congress.

Thank you very much.

GLENN NYE: Thank you, John.

Pleasure being with you.

JOHN YANG: The thrifting economy is booming.

While thrift shops, antique stores and consignment boutiques are nothing new, they're becoming more popular as shoppers deal with the rising cost of living, want to help the environment, and even in some cases, want to earn a living as a reseller.

Secondhand clothing is a multibillion dollar global industry.

It's projected to grow about three times faster than the overall apparel market.

Ali Rogin is back with thrifters from across the country explaining why they do it.

ALI ROGIN: John Whether it's out of passion for pre-loved gems or a desire to save money or shop sustainably, there are many reasons why people are turning to secondhand shopping and in some cases, sharing their tips and tricks with others.

MACY ELENI, Content Craator: My name is Maci Eleni and I am a content creator and author based in Los Angeles.

UGOCHI NWANERI, Owner, Thrift 'N Prosper: Hi, my name is Ugochi Wanieri and I am a vintage and thrift stylist.

HELENA KIM, Content Creator: My name is Helena Kim and I am a content creator focusing on thrift flips and restoration.

EMILY STCHOL: My name is Emily Stochl and I am the creator of Pre-Loved.

MACY ELENI: I grew up in Ohio, raised by a single mom, and the thrift store was really the only place I had to go, like express myself.

HELENA KIM: I started thrifting as a kid out of a necessity.

It was a affordable option for my family and I back then.

UGOCHI NWANERI: I do believe that economic uncertainty does play a huge role.

I can speak to that from my own personal experience being a lifelong thrifter.

EMILY STCHOL: When there is a state of uncertainty, particularly economic uncertainty, people are maybe worried about cost of living or policies like the tariffs, they might choose to shop secondhand.

MACY ELENI: You know, I think a lot of people, especially in this country, like, we're kind of raised thinking like new and young equals better, and old and used equals bad.

That's not true at all.

And we should be reusing these resources.

HELENA KIM: Yes, you can restore something.

You can take that sweater with the hole in it and turn it into something that you would actually cherish and wear.

UGOCHI NWANERI: Give thrifting a chance, because you just never know what you may find.

And who doesn't love saving money and finding quality items for half the price.

MACY ELENI: I hear messages from people that are in these situations and maybe weren't in the past and now need to learn how to thrift their clothes and shop secondhand.

So I am happy to be here to hold their hand and shimmy with them along the way.

JOHN YANG: I'm joined now by Manish Chandra, the founder and CEO of Poshmark, an online fashion resale marketplace.

Thank you so much for being here.

We heard in this clip how some shoppers say that they began thrifting out of economic necessity, but it's really become a passion and in some cases even a business.

What brings shoppers and sellers to the Poshmark platform?

MANISH CHANDRA, Founder and CEO, Poshmark: If you think about what we all have is we all have a closet.

And literally everyone in America has a closet that has some spare clothes that they don't need.

And there's always someone who's looking for it.

So when you combine these two things, Poshmark offers a way to both shop and sell right from your closet.

ALI ROGIN: We've been talking a lot about thrifting people looking for ways to save money in the context of these recent economic conditions.

But of course, thrifting resale clothing has been rising in popularity for years.

To what do you attribute this gradual rise well before this current economic environment?

MANISH CHANDRA: I think there's three trends shaping the rise of resale.

First is, I think when mobile and our iPhone and Android phone started to sort of rise, they led to the fact that it was very easy to merchandise and sell everything in your closet.

Second is social media.

When you think of social media, you wear an outfit, you post it instantly gets obsolete.

So the need to circulate these outfits has gone up pretty dramatically.

And third is the focus on sustainability and vintage.

The ability to sort of shop these amazing styles, be able to go back 30, 40 years and pick up styles and do it in a sustainable fashion, is reshaping and really pushing resale as a mainstream shopping approach.

ALI ROGIN: This administration has been using tariffs to further its economic policy.

We've heard from many manufacturers, many different brands, such as Nike, who recently called these tariffs a new and meaningful cost for the company.

How have these policies, though, affected activity on Poshmark and the business of the platform?

MANISH CHANDRA: Well, what we are seeing is continued sort of rise in growth, but in particular, when you look at sort of more precious items.

So for example, Chanel totes have gone up just in May, 30 percent month over month.

Or Dior bags in clutches another 28 percent month over month.

What you're seeing is that as people are looking at Poshmark, not just as a place to shop for authentic style and vintage stuff, but as a place to hunt for discounts, it really gives them an alternative to traditional shopping.

ALI ROGIN: As we see these trade wars continue affecting supply chains, affecting prices, how do you think that's going to affect the resale fashion market going forward?

MANISH CHANDRA: Well, as you know, tariffs have been a changing piece, some of it is sort of starting to show up in the economic data and some of it will show up in the future.

What we are doing really to respond to it is leading into what we do best, which is offering our shoppers and sellers more advanced tools that they could use, leveraging the power of AI so it allows for a lot of people to get and participate in the act of selling.

On the shopping side, we've introduced a live shopping format that allows people to look at the item, discover sort of in an entertainment format how they can shop.

We've added the ability to take a photo and quickly find items like that on Poshmark.

So we are leaning into technology to help our sellers and shoppers leverage what they can they have in their closet and shop each other's closets.

ALI ROGIN: And the resale market is in some ways a counterweight to the fast fashion industry, which is characterized by high turnover of styles, low cost products.

Fast fashion is of course still very popular despite tariffs affecting shipping costs and that like.

So how do you see the position of the resale fashion segment as it relates to the fast fashion industry?

MANISH CHANDRA: If you, if you think about the need for fast fashion, it really is on the fact that the clothing we are wearing is getting obsoleted for us at a very fast pace.

You know, the styles are changing.

We have micro trends happening.

Sometimes it's Y2K, sometimes it's Barbie core, sometimes it's grandma core.

So all of that forces the style and trendi to kind of change their style.

Well, another completely alternative way to do that is through resale, where you can circulate everything you have, get amazing products, get high quality products, mix and match and restyle what you have and do it in a way that's both, you know, friendly to your wallet but also friendly to the economy and sustainability.

So resale offers a 180 degree alternative to fast fashion and we believe it's a much better, much more stylish.

And also one of the things that fashion doesn't offer that resale offers is uniqueness.

ALI ROGIN: Barbie core, Grandma core.

I simply cannot keep up.

Manish Chandra, Founder and CEO of Poshmark.

Thank you so much for joining us and breaking this all down for us.

MANISH CHANDRA: Thank you for having me.

JOHN YANG: And that is PBS News Weekend for this Saturday.

I'm John Yang.

For all of my colleagues, thanks for joining us.

See you tomorrow.