Leeds students jailed after defrauding train companies out of £140,000 in ticket refund scam
The pair found a loophole in the Delay Repay system - which enabled them to claim cash they weren't entitled to.
Two Leeds-based student have been jailed after using a train ticket refund scam to defraud companies out of more than £140,000.
Chinese nationals Li Liu, 26, and Wanqing Yu, 25, both of Clay Pit Lane in Leeds uncovered an exploit in the Delay Repay system, which is usually used to refund customers if their trains arrive late.
The couple discovered they could buy a ticket and then claim a refund twice - firstly by saying they weren't intending to travel, and secondly by claiming for delayed journeys on the same service.
The pair found a lack of cross checking between the two different kinds of refunds meant money could effectively be claimed back twice.
In order to perpetrate the fraud between 2021 and earlier this year, Liu and Yu set up a network of fake email accounts, false identities and international bank accounts to conceal the scheme.
It was uncovered after rail operator CrossCountry investigated the process Liu and Yu were using - finding they had successfully claimed money on almost 450 occasions.
Officers eventually tracked down both following enquiries with a mail redirection service that sent the delay repayment forms to Liu and Yu's address.
Liu admitted to fraud by false representation and conspiracy to acquire criminal property and was handed a two and a half year prison sentence at Leeds Crown Court.
Yu pleaded guilty to fraud by false representation and conspiracy to acquire criminal property, and was handed a 17-week prison sentence.
DS Alexandra Carter of British Transport Police said: "I'm extremely pleased with the result in this case. Liu and Yu found a weakness in the system and relentlessly abused it for their own benefit at great cost to the train operating companies.
"It’s important to remember this isn’t a victimless crime. In defrauding the TOCs to fund their lifestyle, they’ve also made a mockery of the average commuters who have spent hard-earned money on train tickets - lost to these malicious criminals who worked at great lengths to conceal their wrongdoing.
"Thankfully, in the end we were able to track down Liu and Yu and bring them to justice, and I hope that this sends a message to anyone who would think of attempting anything similar.”