Government launches new anti-fraud initiative

The Government is to launch a new National Fraud Squad and expand a 2019 ban on pensions cold-calling to all financial products. As part of the crackdown, Britain’s intelligence agencies will work with new regional squads of police officers to find and stop scammers targeting Britons from abroad while the technology enabling criminals to mass spam people with phishing emails will be banned.

Fraud is now the most common crime in the UK, with 1 in 15 of us falling victim, costing nearly £7 billion a year. With developments in modern technology opening up new avenues for criminals to target victims, 9 in 10 internet users have also encountered online scams.

The new National Fraud Squad will overhaul how these crimes are investigated by taking a proactive, intelligence-led approach, backed by 400 new specialist investigators. It will work with local forces, international partners and the UK intelligence community to ensure that callous fraud cells that target millions of Brits each day are shut down.

New measures will close the routes that scammers use to target victims, including by banning cold calls on all financial products – such as types of insurance or sham crypto currency schemes – and working with Ofcom to use new technology to further clamp down on number ‘spoofing’, so fraudsters cannot impersonate legitimate UK phone numbers.

Government will also ban other devices or methods commonly harnessed by scammers to reach thousands of people at once such as so-called ‘SIM farms’ and review the use of mass texting services to keep these technologies out of the hands of criminals.

To make it easier for victims to report fraud and rebuild confidence that cases are being dealt with properly, a new system, replacing the current Action Fraud service will be up and running within the year. Backed by a £30 million investment, it will provide a simpler route for reporting fraud online, with reduced waiting times and an online portal to allow victims to get timely updates on the progress of their case. This improved service will also ensure victims’ reports are acted upon more effectively, using data to ensure we can continue to build intelligence as criminals continue to find new ways to target victims.

Seventy per cent of fraud in the UK either starts overseas or has an international link – to drive forward global efforts to tackle these crimes, the government will work bilaterally to raise fraud as a key priority. The Home Secretary will host the first global fraud summit in the UK to guarantee international collaboration to tackle this threat.

Prime Minister Rishi Sunak said “Scammers ruin lives in seconds, deceiving people in the most despicable ways in order to line their pockets.CWe will take the fight to these fraudsters, wherever they try to hide. By blocking scams at the source, boosting protections for people and bolstering enforcement, we will stop more of these cold-hearted crimes from happening in the first place and make sure justice is done.”

Home Secretary Suella Braverman said “Fraud is a blight on our country with ruthless criminals scamming the British public out of their hard-earned cash. They exploit people’s trust and steal their life savings, shattering their confidence and leaving them feeling vulnerable. It also fuels serious organised crime and terrorism. Meanwhile scammers are adapting, taking advantage of new technology to prey on more victims.”

“It is vital we adopt a new approach to this threat. The Fraud Strategy outlines how we will use all levers available to us – through government, law enforcement, industry and international partners – to track down these criminals, intercept their scams and bring them to justice.”

To push the response to fraud at the highest level, a new Anti-Fraud Champion, Anthony Browne MP, has been appointed. He will draw on his considerable experience as the former CEO of the British Banking Association to drive collaboration with industry and represent the UK internationally.

Anti-Fraud Champion, Anthony Browne MP said “Fraud has grown to be the biggest form of crime in the UK, causing financial and emotional distress to millions of people. The tech sector, phone companies and financial services firms must take responsibility for protecting their users by stopping fraud happening in the first place, and work together to design out fraud. We can use the technologies fraudsters are exploiting against them to stop them in their tracks, and I will work with industry to make sure that happens.”

In plans announced today, banks will be allowed to delay payments from being processed for longer to allow for suspicious payments to be investigated, keeping cash out of the hands of fraudsters and stopping more people from falling victim.

Graeme Biggar, Director General of the National Crime Agency, said “The NCA welcomes the new Fraud Strategy and our role in the National Fraud Squad. Through the National Economic Crime Centre, we will drive a proactive intelligence led response, holding fraudsters to account and protecting the public from criminals who operate increasingly online and overseas. We want fraudsters to feel the same vulnerability they inflict upon their victims, as we target their infrastructure, expose their identities and bring them to justice.

Mike Haley, CEO of Cifas, said “Following on from the recent publication of the Economic Crime Plan, today’s strategy and appointment of Anthony Browne MP as Anti-Fraud Champion represents a strong commitment to upping the law enforcement and Government response to fraud and financial crime. The additional investment in policing resource is welcome, but remains dwarfed by an ever-growing range of fraud threats. I therefore especially welcome the further commitment to share law enforcement data with industry, and through this better protect the public and businesses from fraud and its many harms.”

“This commitment must be delivered upon to take the fight to fraudsters, and it is owed to the victims of their crimes.”