A Court in the United Kingdom (UK) has sentenced a Nigerian couple, Luciana and Femi Akanbi, to jail after investigators uncovered how stolen personal data of Transport for London (TfL) employees was allegedly used to execute a tax rebate fraud scheme that cost the public purse more than £433,000.
According to a report by Kent Live on Thursday, the fraud, running from September 2021 to January 2022, was built on sensitive information belonging to at least 40 TfL workers, including passport details, National Insurance numbers and bank records, which were used to file 139 fake tax refund claims.
Record of proceedings at Woolwich Crown Court indicated that Luciana Akanbi, 38, who worked in TfL’s human resources department, had access to the personal records of about 107 employees, which were later exploited for the fraud scheme.
Prosecutors said the couple used the stolen details to create multiple self-assessment accounts and submit fraudulent claims to His Majesty’s Revenue and Customs (HMRC) using at least 38 electronic devices operated from their home and other locations. Although the total value of claims submitted was put at nearly £650,000, authorities confirmed that the actual loss amounted to more than £433,000.
Additionally, the Court heard that the proceeds of the fraud were quickly laundered through a complex network, making recovery difficult for investigators.
In his ruling, Judge David Miller said the case represented the most severe data breach in the history of the transport authority, adding: ‘TfL suffered their worst ever data breach. It meant they had to change their systems. It affected their morale, I am told, and staff performance. You acquired and used the personal details of 40 employees in relation to making the claims for tax rebates but accessed the details of 107 employees.
“There were 139 claims in respect of 40 employees by self-assessment accounts being set up by you and others, using 38 computer devices from your own home and others. The effect was that there were 139 claims for tax rebates totalling just under £649,000. The money lost to HMRC amounted to just over £433,000. That money was almost instantly dissipated in a complex money laundering scheme.”
Also, the Court heard that Luciana Akanbi, who had been employed by TfL since 2017, used her position to access the personal records of 107 employees, which were subsequently exploited for fraudulent claims.
Prosecutor Andrew Evans, who described the operation as sophisticated, involving extensive preparation and a large number of victims, said: “The fraud was sophisticated in nature, required significant planning and involved a large number of victims.”
Noting that proceeds of the fraud were rapidly moved through a complex money laundering network, the prosecutor disclosed that evidence presented in court showed that about £66,000 was traced to Femi’s bank account, while £16,000 was linked to his wife, although the Court held that their total benefit from the scheme exceeded those amounts.
Furthermore, the Court heard that financial pressures contributed to the crime, with Femi reportedly struggling with a gambling addiction following illness during the COVID-19 pandemic.
Judge Miller said over £50,000 of the stolen funds had been paid into various gambling accounts, even as he also noted that Luciana, a mother of three, initially attempted to deflect blame by suggesting that a relative working in the IT sector may have been responsible for the data breach.
However, the judge ruled that both defendants were central to the scheme, stating that the fraud was only possible because of the access granted to Luciana as a trusted employee.
The Judge declared: “You, Luciana Akanbi, had been colleagues with some of these people who were extremely badly let down. That is damaging, to have your credit ratings impacted, to deal with HMRC and to have to rearrange your finances. There was immense damage to third parties.”
Judge Miller while noting that the couple have no recoverable assets, said no compensation order would be made by the Court. In addition to their incarceration, the Court indicated that the couple could face impending deportation hearings as a consequence of their convictions
Meanwhile, following the judgment, a TfL representative confirmed that the organization has implemented robust enhancements to its data protection framework, mitigating risks to prevent any future recurrence.
The TfL Spokesperson said, “We take any cases of fraud extremely seriously and welcome the court’s sentencing of these two individuals. This crime meant that hundreds of thousands of pounds were unable to be reinvested elsewhere for the wider public benefit and involved working closely with HM Revenue and Customs to secure a successful prosecution’.
Reiterating their zero-tolerance stance, an HMRC spokesperson warned that the Agency will vigorously chase down those who attempt to exploit tax regulation.
