TfL Couple Sentenced for Massive Tax Fraud Using Stolen Employee Data
A married couple has been handed prison sentences for orchestrating what a judge described as Transport for London's 'worst ever' data breach, using stolen employee information to submit fraudulent tax rebate claims totalling £650,000.
Sophisticated Fraud Operation
Luciana Akanbi, 38, who worked in HR for Transport for London, illegally accessed the personal data of her colleagues under pressure from her husband, 51-year-old Femi Akanbi. The couple, both Nigerian nationals residing in Dartford, Kent, exploited passport numbers, national insurance numbers, and bank details of 40 TfL employees to lodge 139 fraudulent tax rebate claims with HM Revenue and Customs.
Woolwich Crown Court heard that the sophisticated fraud operation, which took place between September 2021 and January 2022, resulted in an actual loss of £433,000 from public funds. Judge David Miller sentenced both individuals to three years and nine months imprisonment for their central roles in the elaborate scheme.
Scale of the Data Breach
Judge Miller revealed during sentencing that while the fraudulent claims specifically used data from 40 employees, Luciana Akanbi had actually accessed the personal records of 107 TfL staff members during her employment. "TfL suffered their worst ever data breach," Judge Miller stated. "It meant they had to change their systems. It affected their morale, I am told, and staff performance."
The court heard that the couple used 38 different computer devices from their home and other locations to set up self-assessment accounts and submit the fraudulent claims. "The money lost to HMRC amounted to just over £433,000," Judge Miller noted. "That money was almost instantly dissipated in a complex money laundering scheme."
Financial Pressure and Gambling Addiction
Prosecutor Andrew Evans informed the court that Femi Akanbi's gambling addiction had plunged the family into financial difficulties following the Covid pandemic, during which he had been hospitalized with the virus. Over £50,000 of the fraudulently obtained funds was paid into various gambling accounts.
Judge Miller acknowledged the couple's financial pressures while emphasizing the severity of their crimes. "You were under financial pressure and [Femi Akanbi] took to gambling," he stated. "You fell foul to that addiction. Both of you have worked hard to look after your children."
Impact on Victims and TfL
The fraud had significant consequences for both the affected employees and Transport for London. Prosecutor Evans noted that colleagues of Luciana Akanbi "were subjected to additional checks and procedures that lowered morale and created distrust."
Judge Miller emphasized the damage to third parties, stating: "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."
Attempts to Divert Blame
Following her arrest, mother-of-three Luciana Akanbi attempted to shift responsibility by suggesting to HMRC that her husband's cousin, who works in the IT industry, might have been responsible for accessing the TfL data. The court heard that Femi Akanbi served as an "important conduit" between the information sourced by his wife and the submission of fraudulent claims.
TfL and HMRC Response
Richard Mullings, Head of Counter-fraud & Corruption at TfL, welcomed the court's sentencing, stating: "We take any cases of fraud extremely seriously. This crime meant that hundreds of thousands of pounds was unable to be reinvested elsewhere to the wider public benefit."
Mullings confirmed that TfL immediately notified the Information Commissioner's Office and has since implemented "a range of measures to further tighten up access to personal staff data and ensure this cannot happen again."
A spokesperson for HMRC issued a warning: "This should act as a warning to others that we can and do act against anyone who tries to undermine the tax system and steal money that funds public services."
Financial Consequences and Deportation Risk
Judge Miller noted that the dishonestly acquired money was "gone" and made no financial order against the couple, stating "I am told you have no means" and "I cannot get blood from a stone." He also indicated that both individuals "may be liable for deportation" following their prison sentences, though emphasized that decision would not be his to make.
The case highlights significant vulnerabilities in employee data protection systems and serves as a stark warning about the consequences of internal data breaches within major public sector organizations.
