Banks: Fraud

Baroness McIntosh of Pickering Excerpts

Thursday 5th May 2016 Lords Chamber

[Lord Keen of Elie]

I am obliged to the noble Lord. In 2015, 70% of fraud was stopped—70%. As regards the numbers, we have seen an increase in reported banking fraud, simply because this Government have instituted far better systems for identifying fraud and breaches of cybersecurity. With respect, it is not going up. The noble Lord observed that there was an increase in card fraud, but that is not the case. In fact, fraud in respect of credit cards reduced by 4% in the last reported years. Wider reporting of fraud is, as I say, a consequence of our having instituted far better systems for identifying breaches of cybersecurity. I simply remind the noble Lord that it is more than just the Joint Fraud Taskforce dealing with this. We have the national cybersecurity programme, a five-year strategy under which £90 million has already been expended on this; the National Cyber Security Centre; the Cyber Streetwise campaign for online security; Project Bloom for the task force on pension fraud; and the Insurance Fraud Taskforce. Indeed, the Chancellor has committed £1.9 billion to spend on cybersecurity.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble and learned friend advise the House of the number of prosecutions? I, too, have been a victim—successfully, unfortunately, when £300 was taken from my bank card within the space of 20 minutes. Will my noble and learned friend explain how many prosecutions are taking place? If the current law is rigorous enough, surely it is for the police to prosecute successfully the perpetrators of this crime.

[Lord Keen of Elie]

I do not have figures for prosecutions for fraud because it covers a wide spectrum. I will, however, undertake to write to the noble Baroness with such figures as we have, covering in particular banking fraud. Beyond that, I would say that this is the responsibility not just of the police but of Ofcom and indeed of the communications regulator, both of which have powers to impose severe penalties for misuse of cyber and telephone access.