Question to the HM Treasury:

To ask the Chancellor of Exchequer, what steps the Government is taking to help ensure vulnerable people are protected from fraud and scams when using digital banking services.

The Government takes the issue of fraud very seriously and is dedicated to protecting the public from this devastating crime.

The Home Office shortly intends to publish a new strategy to address the threat of fraud. It will work with industry to remove the vulnerabilities that fraudsters exploit, with intelligence agencies to shut down fraudulent infrastructure, with law enforcement to identify and bring the most harmful offenders to justice, and with all partners to ensure that the public have the advice and support they need.

The Government is also taking action through legislation in the Financial Services and Markets Bill, which enables the Payment Systems Regulator to mandate banks to reimburse victims of authorised push payment scams. The Government is aware that fraudsters often target the most vulnerable in our society, and expects that this legislation will result in more consistent and comprehensive reimbursement outcomes, ensuring victims are not left out of pocket through no fault of their own. Fraud prevention has also been supported by wider work of the Payment Systems Regulator, including introducing Confirmation of Payee requirements on the banking sector. This allows customers to check whether the name of a payee’s account matches the name and account details provided by a payer.

The Government is also taking action to address fraudulent activity being hosted online through the Online Safety Bill. The Bill includes a new standalone duty requiring large internet firms to tackle fraudulent advertising, including of financial services.

More generally, the Financial Conduct Authority’s (FCA) Principles for Businesses includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers. The FCA’s guidance on the fair treatment of vulnerable customers sets out its expectations on how firms can understand the needs of vulnerable customers and provide targeted services for this cohort. Examples range from staff having the skills and capability to recognise and respond to the needs of vulnerable customers to product and service design, customer services, and communication.