Banks: Fraud

Baroness Doocey Excerpts

Thursday 5th May 2016 Lords Chamber

Asked by

[Baroness Doocey]

To ask Her Majesty’s Government what steps they are taking to tackle banking fraud, including internet and telephone scams.

[The Advocate-General for Scotland (Lord Keen of Elie) (Con)]

My Lords, the Government have set up the Joint Fraud Taskforce, bringing together banks, law enforcement and government to create a strong collective response to fraud. They have also committed to spending £1.9 billion on cybersecurity over the next five years, which includes tackling cybercrime, and have published a guide for consumers on how they can protect themselves from fraud online.

[Baroness Doocey (LD)]

My Lords, a report published by Which? yesterday showed that one in three victims of banking fraud have to wait four weeks for the banks to take action. If banks were forced to compensate customers when their security systems fail, perhaps they would take this problem a bit more seriously. Can the Minister say whether the Joint Fraud Taskforce will take this crucial principle as its guide?

[Lord Keen of Elie]

I cannot say that any one principle will be taken as the guide to the work of the Joint Fraud Taskforce, which embraces a partnership between banks, law enforcement and government. What I can say is that there is a provision whereby, under regulation, if there is a fraud against someone’s credit card the banks can leave that in the hands of the consumer only where there has been gross negligence. The onus lies very much on the banks to deal with these claims and they are doing that. Indeed, the joint taskforce is taking forward further measures to ensure a reduction in fraud.