London Underground Text Scam Gang Laundered £600K via Gift Cards, Court Hears
A sophisticated fraud scheme targeting London Underground passengers through deceptive text messages resulted in the laundering of approximately £600,000 via gift cards, as revealed during court proceedings this week. Four individuals involved in the elaborate plot have been sentenced, with the operation utilizing homemade "SMS blasters" concealed within suitcases that were transported across the Tube network.
How the Scam Operated
The fraudsters deployed suitcases equipped with custom-built SMS broadcasting devices, which sent out fraudulent messages to commuters in proximity. These messages falsely claimed a failed parcel delivery and included a link prompting recipients to input personal details to resolve the issue. According to prosecutors at Inner London Crown Court, the true objective was to "plunder their bank accounts" by harvesting sensitive information.
Although the exact financial gain from the texting scheme remains difficult to quantify, the court heard that the ringleader, 48-year-old Zhijia Fan, personally profited by over £100,000. His co-defendants—Daoyan Shang, 20; Wan Hafiz, 41; and Gatis Lauks, 25—were believed to have received lesser amounts, but Lauks was specifically implicated in laundering around £600,000 through the purchase of gift cards using stolen bank details.
Gift Card Laundering Operation
Gatis Lauks, who confessed to his role in the fraud after initially giving a "no comment" interview to police in May 2025, detailed how he was recruited in mid-2024 to buy gift cards with compromised bank account information. Lauks described Fan as "his handler" and revealed that a "lady in China" provided him with real-time technical support. Using a mobile app loaded with stolen bank details, he made in-store purchases, reportedly acquiring up to 100 gift cards daily, including one transaction worth £8,000 at a UK retailer.
Lauks earned a 5% commission on the gift cards he loaded, estimating his total earnings from the scheme at approximately £30,000. The group then used these gift cards to purchase various high-value items, such as clothing, Pokemon cards, Louis Vuitton products, and video games, effectively converting stolen funds into goods.
Investigation and Sentencing
The investigation began on March 11, 2025, when an off-duty British Transport Police detective observed a suspicious individual with a suitcase emitting a green flash at King's Cross Underground station. Subsequent searches of the defendants' London residences led to the seizure of 10,832 gift cards, loaded with more than £80,000 in fraud-generated profits.
In court, Fan and Shang changed their pleas to guilty on charges of conspiracy to defraud between January and March 2025. Fan was sentenced to four years and eight months imprisonment, while Shang received two years and ten months. Wan Hafiz was jailed for 14 months for conspiracy to defraud and an additional 10 weeks for possession of articles for use in fraud, with sentences to run concurrently; he also faces deportation as a non-British national. Lauks, who pleaded guilty to fraud by false representation, was given a two-year suspended sentence.
This case highlights the evolving tactics of financial criminals exploiting public transport systems and digital vulnerabilities to orchestrate large-scale fraud, underscoring the importance of vigilance among commuters and robust law enforcement responses.
