Protecting Older People from Fraud (Wales)

Stephen Crabb Excerpts

Tuesday 15th October 2013 Westminster Hall

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

It is a pleasure to serve under your chairmanship, Mr Weir. I pay tribute to and congratulate the right hon. Member for Torfaen (Paul Murphy), a distinguished former Secretary of State for Wales, on securing this debate on the importance of protecting older people in Wales from fraud and scams. I am aware of the specific companies and cases he raised, and I hope to provide some reassurance on how they are being investigated and what the UK Government are doing, working with the Welsh Assembly Government and Welsh local authorities, to make progress.

I confirm that officials in the Department for Business, Innovation and Skills are in contact with trading standards colleagues in Cardiff and at the National Trading Standards Board about the three companies he mentioned. They are under active investigation. I understand that the Cardiff trading standards team and the Welsh scambusters team are investigating the issues raised by the right hon. Gentleman and they have been outlined in the BBC television programme he mentioned.

More broadly, I pay tribute to Age Cymru and its research on the matter. I met its representatives back in April to talk about the issue, and I know that many other Welsh Members of Parliament from all parties have also met people from the organisation. I pay tribute to it for its excellent work to help to protect and support vulnerable elderly people, to enable them to live their lives in comfort.

I hope that hon. Members will be interested to know that my noble friend Baroness Randerson, the other Under-Secretary at the Wales Office, will be holding a round table meeting at the Wales Office next month to support Age Cymru’s work. As part of that, we are bringing together organisations from across Wales, including enforcement and consumer protection agencies, Royal Mail, BT and Ofcom, to discuss how we can work together to reduce older people’s exposure to such scams.

I am sure that the right hon. Gentleman is aware that the cross-party group on older people and ageing at the National Assembly for Wales met only last week to discuss the issue and took evidence from a variety of stakeholders. We have invited the chair of the group to participate in our round table next month, which I hope will join up the discussions that are happening in Cardiff with the issues that we are focusing on at UK level.

[Roger Williams (Brecon and Radnorshire) (LD)]

The right hon. Gentleman has raised a particular type of scam affecting Wales. A constituent, Mr Davies—I call him that because it is his name—responded to persistent attempts to get money out of him for carbon credit and eventually sent £3,000, which he has not seen again. Local police say that they cannot investigate because it is too complicated, and the Serious Fraud Office says it is below its threshold. Will the Minister take that on board, and perhaps talk to me afterwards to look for a way forward to ensure that people receive justice?

[Stephen Crabb]

I thank my hon. Friend for raising that case. Without more detail, I cannot comment further, but I would be very disappointed if Dyfed-Powys police or the Serious Fraud Office were not able to investigate. Let us see the detail, and hopefully we can raise that issue and get some progress on it.

We know that more than 3.2 million people—nearly 7% of the entire UK population—fall victim to scams each year, and that fraud and scams generate more than £9 billion of individual losses each year. That figure is truly staggering. We can all say that we are in complete agreement in this room this afternoon about the need to protect all sections of society, and especially the elderly, against the harm caused by scams.

I take on board the point made by the right hon. Gentleman about the level of prosecutions concerning reported scams. It is important to recognise and put on record that it is notoriously difficult to investigate phone and e-mail scams and to pursue the culprits behind them, because so often the scams originate overseas. The solution, therefore, cannot just be one of enforcement, and that is where prevention comes in, as the right hon. Gentleman mentioned.

In Cardiff, for example, the trading standards team recognise that prevention is key to reducing such crimes. Last year, they set up monthly victim support meetings with South Wales police and other partners, such as Age UK, Age Cymru, Victim Support, and Care & Repair. They work to identify victims of scams and doorstep crime and provide further support, advice and education. As a result, they report that they are seeing the number of cases raised at meetings decline. Through making people aware of how to spot and avoid scams and by utilising telephone and mailing preference services, we can reduce exposure to scams and the likelihood that someone will be taken in.

The Government provide for advice on scams through various agencies—particularly through the citizens advice service, which provides clear and practical guidance to consumers over the phone and on websites. As a Government, we are also taking steps to ensure that people are aware of scams and know what to do if they suspect a scam.

[Nia Griffith]

The Minister will be aware that the hon. Member for Romsey and Southampton North (Caroline Nokes) proposed a ten-minute rule Bill. Will he comment on whether the Government have any plans to implement the meat of that Bill, which was to allow, with safeguards, postal workers to intervene when they saw a huge number of envelopes with those fancy prizes on the front going to one address?

[Stephen Crabb]

I thank the hon. Lady for raising that point. I shall come to Royal Mail a bit later and hopefully the information that I shall provide will suffice. If not, I can follow that up in writing.

The “Think Jessica” campaign and representative bodies such as Age UK and citizens advice bureaux work to raise awareness of the devastating impact that scams and fraud can have on those who fall victim—especially the elderly—and on victims’ families. The National Trading Standards Board has also provided funding to trading standards in Wales for a national doorstep crime project. That project has a number of actions to undertake and that includes working alongside the Older People’s Commissioner for Wales, the Welsh Assembly and other Government Departments.

The Consumer Protection Partnership, which is made up of partners from the enforcement community, as well as Citizens Advice and other Government bodies, has teamed up with fraud and scam experts, such as the Serious Organised Crime Agency and Action Fraud, to implement a more holistic and joined-up approach to tackling scammers. As part of that, the citizens advice service and the Trading Standards Institute launched a scam awareness campaign in May this year, which was endorsed by the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for East Dunbartonshire (Jo Swinson)—the consumer Minister—to raise awareness and to help empower consumers to take firm action against scams. Through a renewed focus on prevention, there is an opportunity to try to protect some of the most vulnerable members of society from falling victim to unscrupulous people.

I will now mention some ways in which consumers can report scams and fraud. The Government have established Action Fraud to allow for the reporting of scams. Scams can be reported to Action Fraud by phone or by completing an online fraud report. It is a simple and quick process, and most importantly, it alerts the most appropriate authority to a potential scam. If someone believes that they have been the victim of a scam, or if they need help about how to advise someone whom they believe is the victim, they can also contact the Citizens Advice consumer helpline, which provides clear, practical help for consumers on what they should do.

Where Citizens Advice identifies a breach of consumer protection law, it can alert local authority trading standards enforcement. I encourage anyone who wishes to do so to make use of schemes such as the telephone preference service and the mailing preference service, which will stop addressed mail, and the “Your Choice” preference service, which will stop unaddressed mailings.

Over the past two years, the Government have better equipped trading standards to hit scammers hard by transferring responsibility for cross-cutting leadership and co-ordination of enforcement activity from the Office of Fair Trading to the National Trading Standards Board. The NTSB funds and directs specialist scambuster teams in England and Wales to enable trading standards to take a cross-regional approach to tackling scams and rogue-trading practices. Scambusters currently have five ongoing serious investigations into scams targeting older people in Wales, and I will highlight a couple of their successes shortly.

On the green deal, I strongly share the concerns of the right hon. Gentleman about rogue traders claiming to be associated with the green deal. We have seen that previously with double-glazing salesmen, with households being targeted for inappropriate investments in conservatories, and a few years ago, with the boom in solar panels.

As constituency MPs, we have all had experience of people coming to our surgeries reporting bad practice. The green deal is just another opportunity for some of these hardcore scammers and fraudsters to target vulnerable households. In April this year, I visited the British Gas training academy in Tredegar, where proper qualified green deal assessors received their training and qualifications. Those are the people whom households should trust for green deal assessments, and not the rogue companies that the right hon. Gentleman mentioned.

The Consumer Protection Partnership is collating emerging consumer issues around the green deal and has held discussions with the Department of Energy and Climate Change. The CPP aims to ensure that initiatives from all Government Departments—but especially on the green deal—take account of potential real harm to consumers through fraud and misrepresentation.

Both trading standards and the Green Deal Oversight and Registration Body naturally take a very serious view of rogue traders and will pursue them with the full force of the law. While instances of abuse under the green deal are only just starting to emerge, it is worth putting on record that scambusters have notched up a couple of impressive wins against other vultures who prey on the vulnerable in Wales. That serves as an example of what fraudsters operating under the green deal banner can expect to receive.

For example, one criminal was a cold-calling rogue trader builder, operating in the local authorities of south-west and mid-Wales. A scambuster investigation identified 21 victims of the man; they had paid more than £150,000 to him. The scambusters team was able to contact and offer support to a number of victims through dedicated specialists. The investigation resulted in the man being sentenced to 12 months’ imprisonment, suspended for two years, for using aggressive commercial practices against vulnerable people. I could point to other examples as well, but time is against us. In order to build further on successes such as that, and to continue to limit the real damage caused by rogue traders in Wales, the NTSB has allocated a budget of £325,000 for its Welsh scambuster team this year.

In summary, the fraudsters’ goal is a simple one: to cheat as many people as possible out of their money by making false promises. Fraud and scams hit the elderly particularly hard; on becoming victims of a scam, they often lose a disproportionate amount of money in relation to other victims. I hope that I have been able to demonstrate this afternoon how, as a UK Government, we are taking action to combat the issues—particularly in Wales, where we are working alongside local authorities and the Welsh Government. We will keep that in sight, and if the right hon. Gentleman wants to follow up in the weeks and months ahead, I will be very happy to continue the discussion.

I come back to a couple of specific questions that have been raised by hon. Members. We were asked about cold doorstep-calling and whether we would welcome a ban, or an increased number of cold-calling “notspots”, where people are prevented from doing so. As a Government, we are certainly not against such initiatives when they are genuinely community-led. When specific communities are being targeted by fraudsters and there is a demand in the community for such an arrangement, we certainly do not wish to do anything against that. However, it is worth putting on the record that neither do we want to harm genuine entrepreneurs, who make a living legitimately, providing a legitimate service and business to households on their doorsteps. There is a balance to be struck, but where there are vulnerable communities who have suffered repeated targeting, perhaps that is one of the solutions that can be community led.

The hon. Member for Llanelli asked about Royal Mail, which currently takes steps to raise awareness of the problem of scam mail among its staff. It has put in place an internal reporting facility that allows customers, including relatives or friends of suspected victims, to report concerns to postal workers or directly to a Royal Mail helpline, which allows advice to be issued and information to be passed on to an appropriate body—the police, trading standards or a support body—for action. The company has been working with the police on identifying possible victims and postage accounts suspected of being used to send scam mail. Again, I am happy to follow up with the hon. Lady if she wants further information about what Royal Mail is doing to prevent scam mail.

The right hon. Gentleman described the people who perpetrate such crimes as crooks and gangsters. That is probably some of the more polite language that we could use to describe such people. We absolutely want to prevent them from operating. They are at times notoriously difficult to investigate and track down, but we as a Government take the issue extremely seriously. We want to provide resources to local trading standards departments and to the cross-cutting partnerships to ensure that there is enforcement and action at the local and Welsh national levels, right across the UK and internationally where possible.

Question put and agreed to.