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Financial Fraud and Economic Crime
11 September 2024
Lead MP
Luke Charters
York Outer
Lab
Responding Minister
Not recorded
Tags
Policing & ResourcesEconomyTaxation
Word Count: 8358
Other Contributors: 7
At a Glance
Luke Charters raised concerns about financial fraud and economic crime in Westminster Hall. Response awaited from government.
Key Requests to Government:
The hon. Member asks the Government to set an ambitious anti-fraud target that surpasses current levels and includes businesses in its scope. He recommends creating a new national anti-fraud centre, supporting data sharing between sectors, enabling banks to share payment data, imposing shared responsibility on social media companies for fraud origination, and expanding FCA powers over the Post Office's everyday banking service.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The hon. Member is concerned about the increasing sophistication of financial fraud techniques, including AI avatars, shell companies, spearfishing, parasitic targeting of legitimate firms, and advanced cloning methods. He notes that these crimes have a significant emotional impact on victims, particularly those with low incomes or lower tech proficiency. The current situation in the UK is alarming, as fraud accounts for over 40% of crime but receives only 1% of police resources. Additionally, the cost of payments fraud to the economy is £1.2 billion annually, and individual losses can reach five-figure sums. Local police forces often deprioritise fraud reports due to geographical complexities.
Chris Coghlan
Lib Dem
Dorking and Horley
The MP called for the establishment of an online crime agency to handle sophisticated online fraud, stressing that police forces are overwhelmed by the complexity of such crimes. He also mentioned the need for public awareness campaigns and a focus on cross-border co-operation.
Southend West and Leigh
Mr David Burton-Sampson highlighted the significant impact of financial fraud, noting that in 2023, UK fraud cost consumers £8 billion. He cited personal instances such as an inflatable fun day scam affecting constituents, underlining how even minor frauds can harm individuals and families. The Essex police's economic crime unit seized £2 million worth of assets and made 15 arrests in February alone. Mr Burton-Sampson also discussed mortgage fraud, noting that Cifas reported one in six UK adults had misled mortgage companies about their salary to buy a home.
Jim Shannon
DUP
Strangford
Jim Shannon quipped about always being a Back Bencher when faced with technical difficulties during debates. Mr Jim Shannon highlighted the severity of financial fraud and scams in Northern Ireland, citing £23.1 million lost to fraud over 13 months with 5,412 reports of fraud from December 2022 to January 2024. He emphasised the importance of awareness among constituents about the dangers posed by such crimes and stressed the need for regular reminders about banking security measures. The MP commended Brackenridge's speech and brought up a recent NCA action, questioning if there is a need for more emphasis on unexplained wealth orders against individuals suspected of involvement in serious organised crime.
Matthew Patrick
Lab
Wirral West
Matthew Patrick declared an interest in his previous role at Pay.UK and thanked Valerie Vaz for securing the debate. He suggested that modernising the payment system could help collect more data to identify, tackle, and prevent fraud.
Paul Holmes
Con
Hamble Valley
He congratulated the hon. Member for York Outer on securing the debate and highlighted the serious issues of financial fraud impacting all age groups, with a focus on elderly and vulnerable individuals who are most susceptible to scams. He mentioned that in 2021, victims lost £2.35 billion to fraudsters and scammers, and the social and economic cost to the UK from economic crime is £8.4 billion a year. Holmes also stressed the importance of updating digital financial infrastructure and protecting against cyber-attacks and ransomware attempts.
Wolverhampton North East
The MP highlighted the rise of international fraud, with perpetrators based in countries like India and the Philippines targeting UK residents. She suggested that trade deals should include clauses on fraud prevention to combat this issue.
Valerie Vaz
Lab
Walsall and Bloxwich
Order. Valerie Vaz addressed acoustic issues for MPs in the front row, suggesting that those affected move to the back of the room.
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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.