Scam Mailing

Debate between Ian Murray and Andrew Bingham

Wednesday 30th January 2013 Westminster Hall

[Ian Murray (Edinburgh South) (Lab)]

It is a great pleasure to serve under your chairmanship for the first time, Mr Sheridan. It is always a great pleasure to be in your company.

I congratulate the hon. Member for South Derbyshire (Heather Wheeler) on securing this Westminster Hall debate. She is a good campaigner in the House, and today has emphasised how good a campaigner she is. Hopefully the debate will kick-start a process that will achieve some results on this serious issue. It is distressing not only for the victims and their families but for everyone concerned. I share the concerns that the hon. Lady expressed in her opening remarks.

As all those who have spoken have said, we have all had constituents who have been affected. Some of us have had personal experience of this problem. I was scammed when booking a holiday not too long ago. It looked as though it was a legitimate holiday company registered with the air travel organisers’ license scheme, but it was merely an online scam. It can be difficult to unwind such a process.

Many hon. Members will remember the 2008 survey conducted by Age UK and Barclays, which revealed that seven out of 10 older people in Britain—that is roughly 7 million people—are targeted by scams every month, either by telephone or letter. It is worth reflecting on what the Office of Fair Trading survey said. The hon. Member for Meon Valley (George Hollingbery) mentioned the £3.5 billion that is lost to scams every year, which equates to £70 for every adult in the UK. That is a massive amount, particularly considering family budgets. The average detriment in a scam is well over £1,000—about £1,200—which shows the scale of the problem.

The OFT survey in 2010 found that around one in 11 —just over 4 million—people said that they had responded to a scam at some time in their life, nearly a third of whom lost money. One in 25, or about 2 million people, had responded to a scam in the previous 12 months. Around half of those scammed have lost more than £50 in total, with 5% claiming to have lost more than £5,000. Three in 10 adults who responded to a scam received further correspondence from the scammer, with more than half being asked to send money and more than a third being asked to send personal information. Those statistics are pretty stark. They show the sheer scale of the problem and the effect it has across every constituency.

Of course, it is not a new practice. I thought I would reflect on the issue in the way the hon. Member for North East Somerset (Jacob Rees-Mogg) would and take us back to when we first find any information on scamming. The first mail fraud dates back to 1660, when King Charles II of England first issued orders regarding postal carriers. Some corrupt letter carriers had taken to pocketing the money that was supposed to pay for the letter’s transport and then delivering the letter anyway, because that was what they were supposed to be doing. Mail scams are nothing new, and I hope the Minister can give us some hope, 400 years later, that we have seen the end of the mail scamming system.

In the present day, as well as sending scam mail by post, scammers are taking to new methods to target people young and old, including phishing e-mails and scam adverts on social networking sites. I know the debate is on scam mail, but it is worth reflecting that the scammers are becoming more sophisticated. The hon. Member for South Derbyshire asked us to look at mail in particular, but we need to update the legislation on social networking and the internet. The work that has been done by the Think Jessica campaign on that deserves great tribute.

Once someone is drawn in by a scam mail, they are often put on a “suckers list”. We have seen some of those suckers lists when scammers have been caught. The language used in scam mail is enticing, saying, “You are a guaranteed winner”, “This is a time-sensitive document”, or, “Reply immediately to release your award”. Various other slogans and logos are also used to entice people in for the first time. The scammers are looking for the first indication that someone may be capable of being scammed. They are not interested in the person who throws the message in the bin or puts it in the junk e-mail box. They are interested in grabbing that little bit of hope that they can take the scam forward.

The hon. Member for Meon Valley mentioned bogus prize draws, lotteries and premium-rate prize promotions. Many of those promotions come with some of our national and local newspapers, as the hon. Member for High Peak (Andrew Bingham) said. Perhaps we should tell the editors of those newspapers that we do not accept that.

[Andrew Bingham]

The hon. Gentleman is absolutely right. The newspaper supplements come in a plastic bag for the simple reason that when the bag is opened and its contents are given a shake, a cascade of different things fall out. Many of them are legitimate, but among them are these scratchcards with super-premium-rate phone numbers.

[Ian Murray]

I appreciate the hon. Gentleman’s intervention, which emphasises part of the problem. I have experimented with a few Sunday newspapers by scratching off all the cards to see if I have ever not won. Given that the chances of winning the national lottery are 14.5 million to one, it is quite exceptional to pick up a Sunday newspaper and win on every single premium-rate scratchcard. That shows how people can be drawn in.

When Labour was in government, we recognised that the consumer regime needed to be more effective at stopping rogues, criminals and those who deliberately set out to defraud consumers, especially the elderly and vulnerable, through scam mailing. I am sure the Minister will respond positively to the patchwork of legislation that the hon. Member for South Derbyshire has laid out.

In government, Labour invested £7.5 million to create scambuster teams across the UK. Those specialist trading standards teams work hard with local police and others across local authority boundaries to come down hard on the worst scammers. The cross-boundary aspect of those teams’ work is absolutely essential, because trading standards teams generally find it difficult to work across local authority boundaries. Since 2006, the project has uncovered £55 million in fraud, saved consumers £23 million, seized £16.5 million in criminal assets and jailed 58 mail scammers for a total of 75 years. That is a good record, but not good enough, and the massive increase in scams, and the things that we have heard today, show that more is needed.

We strengthened the powers of the Office of Fair Trading, and of trading standards, with the implementation of the Consumer Protection from Unfair Trading Regulations 2008. Those regulations banned all types of unfair selling and marketing methods, and, crucially, are enforceable through both criminal and civil courts, to ensure that appropriate action is taken against prolific scammers and to serve as a deterrent. However, as we have heard, the regulations are not really serving as a deterrent, given the stories that have emerged since this debate was announced about people moving on to new scams when one is closed down.

The Government’s commitment to further scambusters funding in December 2010 was welcome, but teams in the south-eastern region, which includes London and East Anglia, have been disbanded. Has the Minister assessed the effect of that on the ability to tackle scams and scam mailing? It would be interesting if she would explain whether scambusters funding will continue.

Sadly, people involved in scam mailing have never had it so good. The economic backdrop of stagnant wages and rising prices has made consumers more anxious to save every penny or earn more money. Sometimes, that has resulted in an explosion of money-making scams and sharp practices disguised as sources of help. In addition, we cannot deny that the Government have squeezed funding on consumer protection, and particularly trading standards, with an average 19% cut in overall local authority funding from central Government. The Trading Standards Institute has done an analysis of the aggregate amount of funding for consumer protection through trading standards. The projections are that from £250 million in 2010, the aggregate throughout the country will fall to £140 million by 2014. That significant drop gives scammers the opportunity to enter markets where they may not have been before.

It is important to consider the restructuring of the consumer landscape, which the hon. Member for Ceredigion (Mr Williams) mentioned. The consumer protection powers of Consumer Focus have been passed to Citizens Advice, and there is a worry that that transfer to an organisation of a different kind, with different philosophies and a different set-up, might undermine some of the great work that Consumer Focus did on the issue. The OFT operated an awareness campaign called Scamnesty in partnership with 129 local authority trading standards services. That was to increase consumer awareness of mass market scams and provide consumers with practical advice on how to avoid being scammed.

Perhaps that is one of the most important things that is needed as a result of the debate. Yes, there are legislative and parliamentary responses, but awareness is also needed of ways in which consumers can protect themselves in the first place, and how they can recognise scam mailings or phishing e-mails if they receive them. I received one such e-mail yesterday, apparently from Her Majesty’s Revenue and Customs, which said I was due a tax rebate. I know that that is not true, but the temptation to click on the link and get money back from the Chancellor of the Exchequer was incredibly tempting. The fact that Departments are being shadowed for the sending out of scam e-mails is a great worry, particularly at a time of year when people are filling out tax returns and may expect e-mails or correspondence from Departments, and particularly HMRC. The amount was only £194.70, if anyone is interested—but far better it should be in my pocket than the Chancellor’s.

It is important for people to be on their guard, and to know that help is available. Scams can bring misery to victims, and we need to remind constituents of several things that the OFT highlighted in its report. It is worth reading them, to raise awareness:

“Stop, think and be sceptical. If something sounds too good to be true, it probably is.

Do not be rushed into sending off money to someone you do not know, however plausible they might sound and even where an approach is personalised.

Ask yourself how likely it is that you have been especially chosen for this offer—thousands of other people will probably have received the same offer.

Think about how much money you could lose from replying to a potential scam—it’s not a gamble worth taking.”

It is also worth reflecting on the constituency case raised by the hon. Member for South Derbyshire about a gentleman who became addicted, and how that issue might fit into legislative change. The data protection issues, and requirement for the Home Secretary to obtain a warrant, are valid only if the individual in receipt of the mail would not complain that their rights were infringed. I wonder if in the hon. Lady’s example the poor old gentleman would complain that he wanted to receive the mailings—what he called his investments. They might be costly, but perhaps he was willing to do it for entertainment.

It is worth highlighting the mailing preference service, which the hon. Member for Meon Valley mentioned, by which constituents can have their details removed from mailing lists to reduce the amount of addressed advertising literature that they receive. The MPS does not cover unaddressed mailings, of course and I suppose that the real problem with it is that people who are willing to scam completely forget it exists, so that all it does is remove legitimate people who want to send mail. However, if someone is registered with the MPS and receives mail that they think is a scam, their awareness may be heightened.

The Royal Mail door-to-door opt-out scheme includes unaddressed mail. Has the Minister reflected on the matter, and will she embark on an awareness campaign in conjunction with Royal Mail? The Foreign Secretary has just said in the House that we do not spend money on advertising these days, and he is probably right to say so, but I wonder whether there is any way in which Royal Mail could help with the process.

I want to touch briefly on the matter of e-mail scams. Surveys show that 73% of adults in the UK have received a scam e-mail in the past year. I think probably everyone in the Chamber has received one in the past week—from people who want to send us bequests, or to tell us that people have died, and so on. That is followed by scams via a letter, at 21%, and text messages at 12%. Social media sites appear to be emerging as a new route for scammers, with 9% of adults having received an approach in that way in the past year. It is not just older people who are the targets, although I appreciate that they are the targets of the physical mail. Young people, with the developments in smartphone technology, and now that many of them have their own bank accounts, are becoming susceptible to scams. I hope that my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) will secure a debate on that, because it would be interesting.

I have some information about phishing e-mails to Wonga customers, and about how people are being sucked in, but it is probably best to leave that for a debate about online phishing. Perhaps the Minister could expand on what the Government are doing to make the public aware of the problems, particularly when they relate to departments such as HMRC. The hon. Member for High Peak raised the issue of such departments being made to look as if they are sending information to constituents, and what we could do to tackle that.

As for mail that is posted, Royal Mail must deliver it. That is not its fault; it is governed by law, and it must do so. I believe we all recognise the importance of strong legislation of that kind, to give Royal Mail the backing needed to deliver its mail door to door. However, could the Government and consumer organisations do more, working with Royal Mail and its union, the Communication Workers Union, and postal workers? Perhaps, while there is an obligation to deliver mail, it would be possible to pick up signs—increased loads, or telltale envelopes—that someone on a particular round is at risk from scam mail, and at the very least deliver an information leaflet, or make the recipient aware. It might be very difficult for the House to change the law on intervening, or intercepting mail, and that is probably right, but there is nothing to prevent the Royal Mail or the postman from putting an information leaflet on scam mailing through the door if it is felt that such mailings are going to that address.

Once scam mail has entered the UK postal system, Royal Mail has a legal obligation to deliver it. However, there has been some criticism in connection with Royal Mail’s “local look” service offered by Spring Global Mail and Royal Mail, whereby letters from abroad bear the Royal Mail postmark and have no trace of their overseas origins. There are concerns about that giving credence to scam mail entering the country. Will the Minister reflect on whether enough is being done at Royal Mail to protect its brand, particularly in connection with organisations such as Spring Global Mail, so that at least those overseas issues can be dealt with?

I want to finish by reflecting on the BBC programme “Inside Out” broadcast a few weeks ago. The programme reported on one company called Emery Ltd, a mail handling company based in Hampshire, which willingly acts as a conduit for European mail scammers. Footage obtained by the BBC programme shows company staff throwing letters from scam victims in the bin. The show’s reporter reads one letter detailing that the victim is 90 years old and in a wheelchair, has had two heart attacks and is diabetic, and querying why they have not received their prize yet. Such letters of complaint were just going in the bin.

It will be crucial to continue to educate and empower consumers to recognise and resist scams. That can be done by key stakeholders working together, and some of the key changes in the consumer landscape that we have discussed will have an impact.

Finally, what is being done to simplify and clarify the law, as the hon. Member for South Derbyshire mentioned at the start of her speech? I conclude back where I started, Mr Sheridan: not by congratulating you on being in the Chair, but by congratulating the hon. Lady on securing this important debate about a problem that blights so many of our constituents.

Fuel Prices and the Cost of Living

Debate between Ian Murray and Andrew Bingham

Wednesday 16th March 2011 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

It is a pleasure to follow the hon. Member for Worcester (Mr Walker), who talked about disingenuous and spurious policies. I am sure it was disingenuous to promise not to increase VAT before the general election and then to increase it immediately after it. There is nothing more disingenuous than lying to the electorate.

I would like to follow my hon. Friend the Member for East Lothian (Fiona O'Donnell) in talking about some of the personal stories that have been brought to my attention and which relate to the Opposition motion.

[Andrew Bingham (High Peak) (Con)]

rose—

[Ian Murray]

I would like to make some progress.

My constituents wrote to ask me to bring their stories to the House and put them directly to the Chancellor and the Chief Secretary to the Treasury, so I am disappointed that neither of them is in their place. It shows a real disregard for this place when those two senior Ministers are not present to debate such an important issue. Of course the two Ministers on the Treasury Bench are among my favourites, but it would have been nice for my constituents to have had a response directly from the horse’s mouth.

Let us examine what fuel price rises are doing to the cost of living. I shall start with the case of a constituent in Edinburgh South who runs a small business. Let us look at what these particular fuel increases are doing to growth in the economy; in so doing, I shall echo some of the points made by the hon. Member for Worcester. My constituent runs a business in the service sector, so she uses a lot of suppliers. However, suppliers’ price increases are going through the roof, mainly because of additional fuel costs. She told me that some of her suppliers were charging as much as an additional £5 per delivery to cover their own increased fuel charges. My constituent faces a dilemma of what to do about that £5 increase. Should she pass it on to her customers? She finds doing so difficult. Why? Her problem is compounded by the fact that VAT has increased from 17.5% to 20%, which has also impacted directly on prices to her customers.