Leeds students pocketed £156k by gaming the train delay refund scheme

23 October 2025 , 10:20

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Leeds students pocketed £156k by gaming the train delay refund scheme

Two Chinese students living in Leeds have been imprisoned after exploiting a major loophole in Britain’s rail compensation system. Li Liu, 26, and Wanqing Yu, 25, amassed a staggering £156,743 by scamming the Delay Repay scheme over 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 exploited this by first claiming refunds on tickets they pretended not to want, then profiting from Delay Repay refunds when those trains were 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 to conspiracy to defraud and possession of criminal property. Liu was sentenced to 30 months in jail; Yu received 17 weeks but will likely be released due to time already served.

Sophisticated Fraud Tactics

Judge Howard Crowson described the operation as highly sophisticated. The duo:

• Created 16 fake passengers to distribute claims
• Set up numerous bank accounts to conceal funds
• Conducted advanced research on chronically late trains
• Managed all communications with a multi-SIM phone setup

Liu’s background in computer science assisted in engineering the fraud, while Yu’s English skills helped craft believable claims.

System Weakness Exposed

The case highlights glaring weaknesses in the Delay Repay scheme, which lacked measures to prevent multiple claims for the same journey. Rail companies, led by CrossCountry Trains who first identified the scam, face pressure to tighten systems and prevent similar frauds.

Legal experts warn that the students’ convictions will likely result in their deportation, ending any chance of returning to the UK. Meanwhile, authorities plan to recover the stolen money under Proceeds of Crime laws—though this may prove difficult.

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 are urgently needed

As Liu and Yu start their sentences, rail companies must act quickly or risk more costly frauds going undetected.

James Smith

Editor-in-Chief