Money Transfer Fraud Schemes in Bulgaria Uncovered, Five Suspects Convicted

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In a significant blow to organized crime, five Bulgarian nationals have been convicted of masterminding the largest-ever fraud against the United Kingdom’s benefit system. The brazen scheme has left authorities reeling, with estimated losses totaling GBP 50 million (EUR 58 million).

The Scheme and Sentences

The convicted suspects pleaded guilty to fraud and money laundering charges at London’s Wood Green Crown Court. Their sentences collectively total over 25 years in prison:

• One perpetrator faces eight years behind bars.
• The remaining four defendants received sentences ranging from three to seven years.

Between October 2016 and May 2021, the organized crime group (OCG) made thousands of false claims for Universal Credit using real people or hijacked identities. They relied on a arsenal of forged documents, including:

• Fake tenancy agreements
• Counterfeit payslips
• Doctored letters from landlords, employers, and GPs

When claims were rejected, the fraudsters persisted, submitting multiple applications until they received payment. The illicit gains were then laundered through a complex network of transfers between various accounts.

How the Scheme Worked

In some cases, the OCG leaders recruited unsuspecting individuals in Bulgaria, obtained their identity documents, and rewarded them with a share of the proceeds from fraudulent benefit claims made on their behalf. These recruits would return to Bulgaria with the ill-gotten gains, alerting Bulgarian authorities to the scheme’s existence.

The Investigation

The suspects were initially arrested in the UK on May 5, 2021, but one defendant fled to Bulgaria before being extradited back to the UK on February 25, 2023, to face justice. A joint investigation team (JIT) was established between UK and Bulgarian authorities with Eurojust’s support in January 2022.

The JIT enabled direct evidence sharing between agencies, particularly banking data, to facilitate asset recovery and confiscation efforts. Participating authorities included:

• The District Prosecutor’s Office- Sliven from Bulgaria
• The Crown Prosecution Service from the UK
• The Department for Work and Pensions from the UK