“AI Catches Student in Landmark Instagram Tax Fraud Case”
21/10/2025
In a groundbreaking legal development, a London student has become the first person in the UK to be convicted for encouraging tax fraud via social media, marking a significant milestone in HMRC’s crackdown on digital financial crime.
The Case: Social Media Meets Serious Crime
Habeeb Ajaga, 21, operated two Instagram accounts where he actively promoted schemes to defraud the UK’s VAT system. Despite HMRC’s efforts to shut down one of the accounts in 2022, Ajaga launched a second account in 2023, continuing his illicit activities.
Following a detailed investigation by HMRC’s Fraud Investigation Service, Ajaga was interviewed under caution in September 2024. He pleaded guilty to two counts of encouraging fraud in August 2025 and was sentenced on 16 October 2025 at Southwark Crown Court to 16 months in prison, suspended for two years[1].
HMRC’s Response
Simon Grunwell, head of cybercrime investigations at HMRC, stated:
“This landmark conviction sends a clear message: we will act against anyone promoting tax fraud online. We back the law-abiding majority and have the power to stamp out those trying to undermine the tax system.”[2]
The Role of Instagram and AI
Ajaga’s conviction comes amid HMRC’s increasing use of artificial intelligence to monitor social media for signs of tax fraud. The agency now scans platforms like Instagram, TikTok, and Facebook for “lifestyle inconsistencies”—posts that suggest a lavish lifestyle not supported by declared income[3][4].
This AI-driven approach is part of HMRC’s broader digital transformation, aimed at identifying and investigating potential fraud more efficiently while maintaining human oversight.
Legal Context
Ajaga was convicted under Section 46 of the Serious Crime Act 2007, which criminalises encouraging or assisting in the commission of indictable offences. This case sets a precedent for future prosecutions involving digital platforms and tax-related crimes[1].
🔍What This Means for Compliance Professionals
This case highlights the growing intersection between social media, cybercrime, and financial compliance. It serves as a warning to individuals and businesses alike: online activity is now firmly within the scope of financial regulators and law enforcement.
References
[1] www.mynewsdesk.com https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/first-conviction-for-promoting-tax-fraud-on-instagram-3410980
[2] uknip.co.uk https://uknip.co.uk/news/uk/uk-news/student-snared-in-uks-first-instagram-tax-fraud-conviction/
[3] www.pie.tax https://www.pie.tax/tax-pible/hmrc-ai-tax-fraud-social-media
[4] www.lbc.co.uk https://www.pie.tax/tax-pible/hmrc-ai-tax-fraud-social-media
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.