Lord Paddick
Main Page: Lord Paddick (Non-affiliated - Life peer)Department Debates - View all Lord Paddick's debates with the Home Office
(2 years ago)
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Lord Sharpe of Epsom (Con)
My Lords, the noble Lord is quite right: the Home Office is leading work on a fraud strategy. The Prime Minister referred to it in the other place as recently as 2 November. We intend to publish on that shortly. It will consider all the possible tools required to go after fraudsters and to protect those who are most vulnerable. The strategy’s other aims will be to stop and block frauds being carried out, and to improve law enforcement. Considerable money is being invested in improving data collection, as well as law enforcement capability.
Lord Paddick (LD)
My Lords, of the £580 million taken from people through authorised push payment scams last year, less than half was reimbursed to victims. Banks say that people should be more careful, but this is unacceptable given the sophistication of these schemes and how rife they are. Will the Government replace the voluntary industry code on authorised push payments with a statutory code, including an obligation to reimburse victims unless there is clear evidence that they are at fault?
Lord Sharpe of Epsom (Con)
My Lords, I have slightly different figures for the number of victims who were reimbursed. I am told that up to the year ending June 2022, 71% of victims got fully reimbursed. On the code to which the noble Lord referred, in 2021 the Payment Systems Regulator consulted on further measures to combat APP fraud. It proposed that all payment service providers must reimburse victims of APP scams where the victim is found not to have been grossly negligent. It is also worth pointing out some other legislative activity. In November 2021, the then Economic Secretary to the Treasury announced that the Government would remove any legislative barriers through the Financial Services and Markets Bill to enable the regulator to act to make reimbursement mandatory. That Bill is currently in Committee, and the PSR is currently consulting further on the mechanism for reimbursement.