Scamming: Vulnerable Individuals

Debate between Julian Lewis and Sarah Newton

Thursday 8th September 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (Sarah Newton)]

I wholeheartedly congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) and my hon. Friend the Member for Solihull (Julian Knight) on securing this important debate. I know they have a long-standing interest in tackling scamming, especially when vulnerable individuals are the intended victims. They have set out the wide range of harm that fraudsters and scammers can cause. I assure the House that tackling scams is a priority for this Government. Scams can have a devastating impact, particularly on the most vulnerable people in society. Mass marketing frauds can affect any one of us, at any time. We are more likely to be a victim of fraud than of any other crime, but when caught out we can sometimes feel ashamed or not want to admit we have been hoodwinked. That, however, can make it hard to get a full sense of the problem. It is really important that we do all we can to understand it and respond, which is why I welcome this debate.

We know that older people are more at risk. The National Trading Standards scams team says that the typical person it provides support to is 74 and living alone. That is why I welcome the work of Bournemouth University and the Chartered Trading Standards Institute to investigate the impacts of scams on older people. Their report on financial scamming earlier this year set out clear recommendations for action by the Government, by charities and by private institutions such as banks. As much of the debate today is focusing on the report’s recommendations, and I will address them directly.

The first recommendation was for all agencies, including banks, to recognise their duty of care to those with dementia and to take measures to protect them. The second was to strengthen rules on data protection to reduce the risk of vulnerable people ending up on so-called suckers lists used by criminals to target their scams. The third was to introduce safeguards at banks and building societies to prevent those who feel at risk of scams from losing large amounts of money.

[Dr Julian Lewis]

I thank the Minister for the interest she has taken in this issue. I know from personal experience that it is difficult to get a bank to take action unless someone has already given power of attorney, as I said in an earlier intervention. When this happened to someone very close to me and I told the bank concerned that I needed to be tipped off if there were any unusual withdrawals, nothing really happened until a particularly alert cashier, on her own initiative, did that. After five years, I eventually got success: the fraudster was forced to repay all the money and to pay the costs of the case. Therefore, will the Minister do everything possible to persuade banks, if a power of attorney is not in place, to have procedures in place if a worried close relative asks them to monitor irregular or unusual withdrawals and let them know?

[Sarah Newton]

I thank my right hon. Friend for raising that constituency case. It reflects the point that my hon. Friend the Member for Solihull made that some banks have good procedures in place and some do not, and that some staff have been well trained and some have not. We need to ensure that every person working in the bank is as good as those identified by the Nationwide, which my hon. Friend mentioned. I will come on to address the wider point: what more banks and building societies can do to protect their vulnerable customers.

I am pleased to report that the Government, regulators and private companies are responding strongly to the recommendations that I have outlined. The Government have taken action more widely on nuisance calls, including a new requirement for all direct marketing callers to provide caller line identification. That came into effect on 16 May. The measure increases consumer choice, by making it easier for people to identify direct marketing calls and to choose whether to accept them. It will also increase the Information Commissioner’s Office’s ability to investigate such calls.

Members may also be aware that, in the Queen’s Speech on 18 May, the Government announced their intention to bring forward a Digital Economy Bill. Among other legislative changes, it will introduce a measure making it a requirement for the Information Commissioner to issue a statutory code of practice on direct marketing.