Commons Sense

House of Commons · Westminster Hall

Financial Fraud and Economic Crime

11 September 2024 · 7 other contributors · 8,358 words

Opened by Luke Charters Lab York Outer

Responding minister: Not recorded

Crime & Law EnforcementEconomy

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

Read the full transcript on Parliament.uk

At a glance

Luke Charters raised concerns about financial fraud and economic crime in Westminster Hall. Response awaited from government.

Key points

  • 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.
  • Fraud accounts for over 40% of crime in the UK but receives only 1% of police resources, with the cost of payments fraud to the economy being 1.2 billion annually.
  • The hon. Member asks the Government to set an ambitious anti-fraud target that includes businesses in its scope and recommends creating a new national anti-fraud centre.

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.

Opened the debate

Luke Charters Lab York Outer

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.

Other contributors (7)
  • 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.

  • David Burton-Sampson Lab 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.

  • Sureena Brackenridge Lab 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.

Get updates like this by email
▸ Assessment & feedback
Summary accuracy