Feeds

Corrupt bank worker jailed over Trojan-powered tax scam

Funneled £3.2m through bogus bank accounts

Protecting users from Firesheep and other Sidejacking attacks with SSL

A former local business manager at a bank who participated in a £3.2m self assessment tax fraud was jailed for three years and three months on Friday.

Nikola Novakovic, 34, conspired with Oleg Rozputnii, 28, to register over 1,050 fictitious taxpayers on the Income Tax Self Assessment system. The pair claimed fraudulent tax refunds under assumed names before laundering the proceeds of the scam via 200 fraudulent bank accounts.

Personal details needed to pull off the racket were extracted from the computers of consumers using an unspecified computer virus. Rozputnii, an illegal immigrant from the Ukraine, used numerous false identities to help commit the fraud, which also involved Dmytro Shepel, 26, a Ukrainian, also from London.

Joe Rawbone, assistant director of HMRC Criminal Investigation, said: "These men ran an audacious scam stealing millions of pounds. They set up hundreds of false bank accounts using viruses to hack into personal computers to gain information. They used their illegal profits to fund lavish lifestyles, buying performance cars including Porches, Mercedes and Jaguars. HMRC takes tax fraud extremely seriously and we will recover any financial gain from this criminal activity."

The scam netted £3.2m between January 2008 and September 2010 when the racket was uncovered following a lengthy investigation by HM Revenue & Customs (HMRC).

Sentencing, Mr Recorder Singh QC said that Novakovic "had abused his position with the bank" as part of a "sophisticated and orchestrated fraud".

Novakovic and Rozputnii pleaded guilty to cheating the public revenue in March. Rozputnii, the main mover behind the scam, was jailed for three years and nine months on Friday. Shepel was sentenced to three-and-a-half years at an earlier hearing in August 2010.

Pictures of the subjects and their cars can be found in a HMRC statement on the case here. ®

The next step in data security

More from The Register

next story
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Infosec geniuses hack a Canon PRINTER and install DOOM
Internet of Stuff securo-cockups strike yet again
THREE QUARTERS of Android mobes open to web page spy bug
Metasploit module gobbles KitKat SOP slop
'Speargun' program is fantasy, says cable operator
We just might notice if you cut our cables
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
YouTube, Amazon and Yahoo! caught in malvertising mess
Cisco says 'Kyle and Stan' attack is spreading through compromised ad networks
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
Greater dev access to iOS 8 will put us AT RISK from HACKERS
Knocking holes in Apple's walled garden could backfire, says securo-chap
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.