Insider data breach exposed personal records of 40 employees, enabling 139 fake tax refund claims

A Nigerian couple, Luciana and Femi Akanbi, have been convicted and jailed in the United Kingdom for orchestrating a sophisticated tax fraud scheme that cost the public purse more than £433,000.

The pair were found guilty after investigators uncovered how stolen personal data belonging to Transport for London (TfL) employees was used to file fraudulent tax rebate claims.

The court heard that the fraud took place between September 2021 and January 2022, targeting at least 40 TfL workers. Sensitive information—including passport details, National Insurance numbers, and bank records—was used to submit 139 false tax refund claims.

Proceedings at Woolwich Crown Court revealed that Luciana Akanbi, 38, worked in TfL’s human resources department and had access to personal records of about 107 employees. Prosecutors said this access enabled the large-scale data breach that underpinned the fraud.

Using the stolen information, the couple created multiple self-assessment accounts and submitted fake claims to HM Revenue and Customs (HMRC). The operation involved at least 38 electronic devices used from their home and other locations.

While the total value of fraudulent claims was estimated at nearly £650,000, authorities confirmed that actual losses exceeded £433,000. Much of the money was quickly laundered through a complex network, making recovery difficult.

Judge David Miller, delivering judgment, described the case as the most serious data breach in TfL’s history. He noted that more than £50,000 of the stolen funds had been paid into gambling accounts.

The judge also revealed that Luciana initially attempted to deflect blame, suggesting a relative working in IT may have been responsible for the breach.

“Tfl suffered their worst-ever data breach. It meant they had to change their systems and it affected staff morale,” Judge Miller said.

“You accessed the personal details of 107 employees and used the data of 40 to submit 139 fraudulent tax rebate claims, totalling just under £649,000.”

Prosecutor Andrew Evans described the scheme as highly sophisticated, involving extensive planning and multiple victims. He added that the proceeds were rapidly moved through a complex money laundering network.

Evidence presented in court showed that about £66,000 was traced to Femi Akanbi’s bank account, while £16,000 was linked to his wife. However, the court held that their total benefit from the fraud far exceeded those amounts.

In his ruling, Judge Miller said both defendants played central roles, stressing that the scheme was only possible due to Luciana’s position as a trusted employee with access to sensitive data.

The court also ruled that no compensation order would be made, as the couple were found to have no recoverable assets.