8-Year Prison Sentences Handed Down in $1.3 Million Computer Intrusion and Tax Fraud Scheme

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Nigerian National Sentenced to 8 Years in Prison for Computer Intrusion and Tax Fraud Scheme

A US court has sentenced a Nigerian national to eight years in prison for his involvement in a large-scale computer intrusion and tax fraud scheme.

The Scheme

The operation, which spanned over five years, resulted in the theft of over $1.3 million in fraudulent tax refunds from the US government.

Between June 2016 and June 2021, the individual, Matthew A. Akande, collaborated with co-conspirators to steal sensitive taxpayer information and use it to file false tax returns.

Modus Operandi

The group targeted Massachusetts-based tax preparation firms, sending them phishing emails that appeared to come from potential clients seeking tax services.

These emails were designed to trick the firms into divulging sensitive information, which was then used to gain unauthorized access to their computer networks.

Once inside the networks, the attackers stole taxpayers’ personally identifiable information (PII) and used it to file fraudulent tax returns in the taxpayers’ names.

The refunds generated from these false returns were deposited into bank accounts controlled by Akande’s co-conspirators in the US.

The co-conspirators then transferred Akande’s share of the funds to third parties in Mexico.

Indictment and Sentence

Akande’s indictment in July 2022 included multiple charges, including conspiracy to gain unauthorized access to protected computers, wire fraud, unauthorized access to protected computers, theft of government funds, and aggravated identity theft.

The sentence handed down by the US District Court includes eight years in prison, followed by three years of supervised release.

Implications

This case highlights the ongoing threat posed by computer intrusion and tax fraud schemes, which can result in significant financial losses for individuals and the government.

It also underscores the importance of robust cybersecurity measures and vigilance in protecting sensitive information from phishing attacks and other forms of cyber threats.