Men Sentenced to 8 Years for $1.3 Million Computer Intrusion and Tax Fraud Scheme

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Nigerian National Sentenced to 8 Years for Tax Refund Scheme

A Nigerian national has been sentenced to eight years in prison for his involvement in a sophisticated scheme to infiltrate the computer networks of Massachusetts tax preparation firms and file fraudulent tax returns. The operation, which spanned five years, generated over $1.3 million in illicit tax refunds.

The Scheme

According to court documents, the individual, Matthew A. Akande, collaborated with co-conspirators to steal sensitive taxpayer information, including personally identifiable data, to file fake tax returns in the names of unsuspecting taxpayers. The scheme relied on phishing emails sent to five tax preparation firms in Massachusetts, which appeared to originate from prospective clients seeking tax services.

The emails were designed to deceive the firms into divulging sensitive information, allowing the attackers to gain unauthorized access to their computer networks. Once inside, the perpetrators used the stolen data to file fraudulent tax returns, which were then deposited into bank accounts controlled by co-conspirators in the United States. The funds were subsequently transferred to third parties in Mexico, with Akande receiving a portion of the proceeds.

Sentence and Indictment

Akande’s sentence includes three years of supervised release following his prison term. He was indicted in July 2022 on multiple counts, including conspiracy to gain unauthorized access to protected computers, wire fraud, theft of government funds, and aggravated identity theft.

Importance of Cybersecurity

The case highlights the growing threat of cyber-enabled tax fraud and the importance of robust security measures to protect sensitive taxpayer information. It also underscores the need for tax preparation firms to be vigilant in their email communications and to implement effective phishing detection and prevention strategies.

In a statement, prosecutors emphasized the severity of the crime, noting that Akande’s actions resulted in significant financial losses for the United States government and compromised the sensitive information of numerous taxpayers. The case serves as a reminder of the importance of collaboration between law enforcement agencies and the private sector in combating complex cybercrime schemes.