A Nigerian national has been sentenced to eight years in prison in the United States for masterminding a sophisticated $8.1 million tax fraud scheme that targeted more than 1,000 Americans through phishing attacks and malware.
According to the United States Department of Justice, 37-year-old Matthew A. Akande orchestrated the cyber-enabled fraud by stealing taxpayers’ personally identifiable information (PII) from Massachusetts-based tax preparation firms. The stolen data was used to file fraudulent tax returns seeking refunds from the Internal Revenue Service.
How the Phishing and Malware Scheme Operated
Investigators revealed that Akande sent fraudulent phishing emails to five tax preparation firms in Massachusetts. The emails appeared to come from prospective clients requesting services but were designed to trick the firms into downloading a remote access trojan known as Warzone RAT.
Once installed, the malware allowed Akande to infiltrate the firms’ computer systems, access prior-year tax records, and harvest sensitive client data. He then used the stolen information to file fraudulent tax returns.
Refund payments were directed into bank accounts opened by co-conspirators in the United States. After the IRS issued the refunds, the funds were withdrawn and distributed, with portions allegedly sent to third parties in Mexico while the conspirators kept a share.
Over $1.3m Recovered as Court Hands Down Sentence
Authorities disclosed that Akande and his accomplices filed more than 1,000 fraudulent tax returns over approximately five years, seeking over $8.1 million. They successfully obtained more than $1.3 million before the scheme was uncovered.
Charged in 2022 with 32 counts—including wire fraud, money laundering, theft of government funds, and aggravated identity theft—Akande was extradited and arraigned before the United States District Court for the District of Massachusetts.
He was sentenced to eight years in prison, followed by three years of supervised release, and ordered to pay $1,393,230 in restitution.
