Two Chinese students living in Leeds have been locked up after exploiting a massive loophole in Britain’s rail compensation system. Li Liu, 26, and Wanqing Yu, 25, raked in a whopping £156,743 by scamming the Delay Repay scheme for three years.
Elaborate Scam Busted
The pair discovered that the national Delay Repay system did not automatically cross-check claims for ticket refunds and delay compensations. They abused this by first claiming refunds on tickets they pretended they didn’t want, then cashing in on Delay Repay refunds when those trains ran late.
- Liu stole £141,031, Yu £15,712
- Used 16 fake identities and multiple bank accounts
- Monitored the scam via a 20-SIM card adapter
The scam ran from 2021 until their arrest by British Transport Police. Both admitted conspiracy to defraud and possession of criminal property. Liu was jailed for 30 months; Yu got 17 weeks but will likely walk free due to time served.
Sophisticated Fraud Tactics
Judge Howard Crowson described the operation as highly sophisticated. The duo:
- Created 16 fake passengers to spread out claims
- Set up numerous bank accounts to hide funds
- Used advanced research on chronically late trains
- Managed all communications with a multi-SIM phone setup
Liu’s background in computer science helped him engineer the fraud, while Yu’s English skills aided in crafting believable claims.
System Weakness Exposed
The case highlights glaring flaws in the Delay Repay scheme, which lacked checks to block multiple claims for the same journey. Rail companies, led by CrossCountry Trains who first spotted the scam, face pressure to tighten systems and stop similar frauds.
Legal experts warn the students’ convictions will likely see them deported, ending any chance of returning to the UK. Meanwhile, authorities plan to claw back the stolen money under Proceeds of Crime laws—though recovery may be tricky.
Rail Industry on Alert
This saga serves as a wake-up call to the rail industry and passengers alike:
- Better identity checks are essential
- Refund and compensation claims must be cross-verified
- Automatic alerts for suspicious activity needed urgently
As Liu and Yu start their sentences, rail companies must act fast or risk more costly frauds slipping under the radar.
