In a shocking case of cybercrime, a 33-year-old Nigerian man residing in the United Kingdom has been handed a 10-year prison sentence for his involvement in a massive phishing scam. The fraud operation targeted US real estate transactions, swindling over $20 million from more than 400 prospective homebuyers.
Babatunde Francis Ayeni pleaded guilty to conspiracy to commit wire fraud, as confirmed by the US Department of Justice. The scam, described as a "sophisticated business email compromise scheme," specifically preyed on individuals involved in real estate transactions across the United States.
The operation's modus operandi involved sending phishing emails to title companies, real estate agents, and attorneys. Unsuspecting employees who clicked on malicious links or attachments were prompted to enter login information, which was then harvested by the hackers. With access to these accounts, the criminals monitored emails for upcoming property transactions and intercepted large down payments by providing fraudulent wire transfer instructions.
To obscure their trail, the scammers converted the stolen funds into Bitcoin using Coinbase. The scheme came to light after targeting a real estate title company in Gulf Shores, Alabama.
The impact on victims has been devastating. Over half of those affected were unable to recover their funds. Two victims who provided impact statements in court lost more than $114,000 combined. One man, attempting to purchase a home for his elderly father diagnosed with Parkinson's disease, fell victim to the scam. Many victims reported experiencing shame, despair, and depression following their losses.
US Attorney Sean P. Costello emphasized the severe and lasting harm that cyber-crimes can inflict on victims. The FBI has noted a 22% increase in losses from online fraud between 2022 and 2023, with Americans losing over $12.5 billion last year. Business email compromise scams alone accounted for nearly $3 billion of these losses.
While Ayeni has been sentenced, two of his co-defendants, Feyisayo Ogunsanwo and Yusuf Lasisi, remain at large and are believed to be outside the United States.
FBI Special Agent Paul Brown, in charge of the mobile division, urged other fraud victims to come forward, stating that such criminal behavior would not be tolerated in Alabama. He expressed satisfaction with Ayeni's substantial sentence, particularly after hearing victims recount the impact of losing their home down payments and future dreams.
This case serves as a stark reminder of the need for vigilance in online transactions, especially in high-stakes real estate deals. As cyber-criminals continue to evolve their tactics, awareness and caution remain key defenses against such devastating financial losses.