Banks: Fraud

Lord Rosser Excerpts

Thursday 5th May 2016 Lords Chamber

[Lord Keen of Elie]

I am obliged to the noble Countess. In addition to these initiatives, we also see that telephone companies are taking steps to cut down the time in which a phone line can remain open when a bank telephones a customer, because there are circumstances in which fraudsters will attempt to use that open time to perpetrate a fraud.

[Lord Rosser (Lab)]

I am not sure that the Government’s response reflects the severity of the situation. After all, in 2015, financial fraud losses across payment cards, remote banking and cheques totalled, I think, some £755 million—an increase of 26% compared with the previous year. The ONS estimates that there have been 5.1 million incidents of online fraud in the last year. Why have the Government not even started, with the banking industry, to get a grip on this booming area of crime, which is adversely affecting so many people? If the noble and learned Lord believes the Government are taking action, when do the Government expect to see a downturn in such fraud?

[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.