Commons Sense

House of Commons · Westminster Hall

Online Scams: Consumer Protection

28 April 2021 · 2 other contributors · 4,117 words

Opened by Ruth Edwards Con Rushcliffe

Responding minister: Victoria Atkins

Crime & Law Enforcement

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Ruth Edwards raised concerns about online scams: consumer protection in Westminster Hall. A government minister responded.

Key points

  • Last year, Ruth Edwards's constituents lost 30,000 to a clone scam.
  • Action Fraud figures show that 85% of all fraud was cyber-enabled in the year up to June 2020, with reports of clone scams increasing by nearly 30% between March and April 2020.
  • Victims lost more than 78 million to clone scams in 2020, with an average loss of about 45,000 per victim.

Key requests to Government

Edwards asked for an update from the Minister on how the Government proposes to tackle online financial harms. She wants to know if financial harms will become part of the Online Harms Bill as requested by the FCA, the Financial Services Compensation Scheme and Which?. If not, she seeks details of what they plan to do instead. Additionally, she requested a timetable for action.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Ruth Edwards Con Rushcliffe

Last year, Ruth Edwards's constituents lost £30,000 to a clone scam. She cited Action Fraud figures showing that in the year up to June 2020, 85% of all fraud was cyber-enabled and reports of clone scams increased by nearly 30% between March and April last year. Victims lost more than £78 million to clone scams in 2020, with an average loss of about £45,000 per victim. She highlighted the emotional distress caused by these scams, noting that many victims are not compensated. The impact on individuals can be devastating, such as when scammers target a person's fears or hopes and take advantage of them to transfer large sums of money.

Other contributors (2)
  • Nusrat Ghani Con Sussex Weald

    I remind hon. Members about new hybrid arrangements, including cleaning spaces and wearing masks in Westminster Hall throughout the debate.

  • Stephen Timms Lab East Ham

    I congratulate the hon. Member for Rushcliffe on securing the debate, highlighting that an estimated 40,000 people lost £1 billion in pension savings to scams post-pension freedoms introduction. Aviva identified 27 fake websites attempting to defraud customers since lockdown began.

Government Response

Victoria Atkins

It is a pleasure to serve under your chairmanship, Ms Ghani. The Government recognise the scale and impact of fraud on victims, noting that it accounted for over a third of all estimated crime in the year ending September 2020. The Minister highlighted three key areas for tackling fraud: prevention, catching criminals responsible, and supporting victims. Prevention efforts include the National Cyber Security Centre's suspicious email reporting service which has led to more than 5.5 million reports, with over 41,000 scams and 81,000 websites taken down. The Minister mentioned working closely with industry to develop fraud charters and initiatives like the Dedicated Card and Payment Crime Unit and telecoms company partnerships. Regarding the online safety Bill, ongoing discussions are taking place on its scope. Tomorrow, my noble Friend Baroness Williams of Trafford will meet tech companies to discuss preventing fraud and protecting the public. The Government are committed to legislative and non-legislative approaches, including a new framework for a fraud action plan to be published later this year. They aim to give law enforcement tools to tackle fraudsters and protect vulnerable individuals, while also working with the financial sector to promote reimbursement consistency across the board.

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