Doughnutting Scam - Railway Ticket Fare Evasion

The term surged in public awareness following the high-profile criminal conviction and subsequent lifetime ban of a wealthy former HSBC executive, Joseph Molloy.

The Joseph Molloy Case

In October 2026, the UK's Financial Conduct Authority (FCA) permanently banned Joseph Molloy, the former head of passive equity at HSBC Asset Management, from working in the financial services industry.

• The Method: Molloy used false names and addresses to set up fraudulent travel card accounts. He also illicitly obtained a Jobcentre Plus smartcard (intended only for unemployed job seekers) to secure a further 50% discount on his travel. He used these cards to "doughnut" his daily commute between his home in Orpington, south London, and the HSBC offices in Canary Wharf.
• The Scale: He executed this scam at least 740 times over an 11-month period between October 2023 and September 2024.
• The Financial Impact: He successfully evaded £5,911 in train fares from Southeastern Railway.
• The Consequences: Molloy pleaded guilty to fraud by false representation. He was sentenced to a 10-month suspended prison sentence, ordered to complete 80 hours of unpaid work, forced to pay £5,000 in compensation, and handed a lifetime industry ban by the FCA for lacking "honesty and integrity".

The FCA continues to heavily crack down on this type of non-financial misconduct, treating fare-dodging by affluent City professionals as a serious indicator of dishonesty that disqualifies them from managing client money.