Telephone and Online Scams

Nick Thomas-Symonds Excerpts

Tuesday 4th June 2019 Westminster Hall

[Nick Thomas-Symonds (Torfaen) (Lab)]

It is a pleasure to serve under you in the Chair, Mr Hollobone, in the first debate back after the short recess. I pay tribute to my hon. Friend the Member for Ogmore (Chris Elmore) for raising this crucial issue and for his thoughtful and powerful speech, which made a compelling case for greater action by the Government on telephone and other types of scamming.

The scale of this problem is truly breathtaking. Age UK has estimated that up to 5 million people over the age of 65 believe they have been targeted by a scam. South Wales, the part of the country that my hon. Friend and I represent, is a hotspot for these issues. He was right to speak of his local trading standards team and South Wales police. I entirely concur with his comments and support what he says in respect not only of his local authority, but my local authority in Torfaen and Gwent police. There is no doubt that trading standards and other law enforcement agencies would be in a better position to tackle this issue if they had not been subjected to nine years of austerity and spending cuts.

I welcome the work of the joint fraud taskforce, which I look forward to hearing more about from the Minister in due course, and the ban on pension cold-calling that came into effect in January. However, I note that Her Majesty’s inspectorate of constabulary said there was a “disjointed and ineffective” national strategy. Therein lies an enormous challenge for the Government in pulling together so many different aspects of a strategy and enforcing it around the United Kingdom.

The hon. Member for Westmorland and Lonsdale (Tim Farron) spoke powerfully about the cases he has seen in his constituency office, and about a crucial issue that should not be missed in this debate: the future of bank branches. At the last general election, my hon. Friends and I stood on a manifesto that sought to change the framework of legal obligations to be considered when closure decisions come to the fore. Nobody is saying that there are not business cases. Footfall is of course important—nobody is denying that—but there are two things to consider. First, the wider social impact of closing branches is often missed. Secondly, if the current rate of branches disappearing from the high street continues, we will end up with deserts in different parts of the country because there are no branches nearby. The hon. Gentleman represents a very rural constituency where I am sure that would be a particular issue, but it applies across all parts of the country and is something that we really need to tackle.

The hon. Member for Strangford (Jim Shannon) spoke movingly about his constituent, a schoolteacher who clearly fell victim to a fraudster who was extremely credible, as I am afraid they too often are. The hon. Gentleman also highlighted a further issue, which I will come back to in a moment: once someone has fallen victim to a scam, what awareness is there of the remedy and the compensation that can subsequently be recovered? In some cases, it is sadly not.

The hon. Member for North Ayrshire and Arran (Patricia Gibson) was absolutely right to highlight the increasing risk to vulnerable people. When we talk about some of the statistics on scams affecting people over 75—I will do so in a moment—we must not forget that anyone of any age can fall victim to such scams. She was right to point out the risk to young people from different types of online scams, including identity fraud, and the importance of being cautious about what is shared on social media and knowing how that information can be used by people who wish us harm.

In its most recent statistics on crime in England and Wales, the Office for National Statistics identifies a worrying trend in these types of cases. The number of fraud incidents, 3.6 million, was up 12% on the previous survey year, driven in part by a 27% rise in consumer and retail fraud. It is vulnerable people who are targeted. Age UK has identified that single older people are more likely to respond than married people, and half of all people over 75 live alone. In addition to that vulnerability, the people who perpetrate such crimes are becoming more menacing and sophisticated in how they set out to defraud people.

A number of aspects of this issue demonstrate the need for a laser-like focus from the Government. There is the classic lottery scam, where people are told that they have won something when they have not. There are Government scams, where groups essentially pretend to be the Government and use that badge of credibility to carry out their crime. There are also security scams, which were mentioned in earlier speeches, whereby people are contacted by someone pretending to be their bank or some other trusted source.

What are we to do? We have to raise awareness, but it has to be done in a robust, targeted and smart way. People who are victims of scams need to report them, and a number of the speeches picked out that it is often difficult. People perhaps feel embarrassed and do not want to say they have been a victim of this particular type of confidence trick. As my hon. Friend the Member for Ogmore pointed out, that relates to how people are treated when they do speak up, and it is important that best practice on being sensitive to the relevant issues is spread among our police forces.

There are other, practical things that people can do. For example, the Royal Mail can stop unaddressed mailings in the post if people register for that service. There is also the issue of data protection, which is covered by both the Data Protection Act 2018 and the General Data Protection Regulation. The Information Commissioner’s Office, to which I often direct constituents who are worried about what has happened to their data, is an oversight body. If people are concerned about the retention of their data, they should be encouraged to go to that scrutiny body.

The hon. Member for Strangford raised the question of what remedies there are when someone falls victim to one of these confidence tricks. There is the Consumer Credit Act 1974, and people often forget that credit companies are jointly and severally liable even if the breach or misrepresentation is by the person doing the selling. The Act applies only to sums between £100 and £30,000, but that is none the less one remedy. There is debit card chargeback and the authorised push payment voluntary code, to which the hon. Member for Westmorland and Lonsdale referred. I praise the work of consumer groups on raising awareness of those remedies. It is something that we really need to focus on, so that people are aware that should they fall victim and lose substantial amounts of money—one of the cases mentioned in the debate involved around £50,000, which is a huge amount of money—there are routes they can go down to try to recoup at least some of their losses.

There was an excellent Library briefing for this debate, and I pay tribute to the Library staff who produced it. The Government really need to look at how they collect statistics in this area. Where they do collect statistics, is there a way of breaking them down into types of scams? Are they online or telephone scams? I have raised this point with Ministers before, and I appreciate that there is always a balance. They cannot collect every single statistic, but if statistics were collected on what the fastest-growing risk was, the Minister would be more able to target Government policy to reduce it.

It is crucial that we bring together a robust strategy all over the country. We need more resources for our law enforcement agencies, but they also need a consistent strategy that pushes back against the fraudsters who target our constituents. To use the words quoted by my hon. Friend the Member for Ogmore, the victims might not “bang, bleed or shout,” but great misery is certainly caused to them by this crime. The Government have to rise to the challenge.