PARLIAMENTARY DEBATE
Fraud - 22 May 2023 (Commons/Commons Chamber)

We recently launched our strategy to tackle fraud, alongside measures in the Online Safety Bill that will require companies to prevent fraud and measures in the Economic Crime and Corporate Transparency Bill to hold companies to account for fraud committed by their employees. We are also working with tech companies to agree other measures and improving the support we give to victims.

We know that 80% of fraud starts online, and 18% comes from the tech companies that the Minister talked about, yet they do not contribute anything to reimbursing the victims of fraud, despite effectively profiting from causing it. Is it not time that we considered asking them to contribute towards reimbursing some of the losses that they are introducing into the system?

My hon. Friend is raising questions that we have looked at closely in the fraud strategy, and he is absolutely right to highlight the disparity between those who are causing and those who are paying. This is a conversation that we have been having, and I look forward to identifying some areas soon for further discussion. Action Fraud has not always helped as well as it might, which is why we are looking at making the system more efficient.

At my surgery in Sarratt last month I met Catherine, whose father was defrauded out of thousands after taking a call from a man who he thought worked for Virgin Media. Catherine only found out after her father unfortunately passed away and she found all the emails he had sent attempting to get his money back—a battle that Catherine has now taken on. Can the Minister tell the House what he is doing to stop vulnerable people being targeted by fraudsters?

May I offer absolute sympathy to Catherine? Sadly, although my hon. Friend is citing the case of an older man who was the target of crime, this is a crime that affects many people of all ages across our society. It is not specifically connected to the most vulnerable; rather, it predominantly affects people who are online more often, which, as one can imagine, includes many people across society. We are rolling out the nationwide economic crime victim care unit across England and Wales, for victims whose cases are not investigated by the police. This group will help victims to recover from fraud and cyber-crime, and will significantly reduce the likelihood of repeat victimisation.

I welcome Minister’s proposal that Action Fraud should have greater capacity. I have experienced a number of constituency cases where elderly people were robbed of their life savings and there was a feeling that insufficient priority was being given to this issue. Will the Minister give an assurance that there will be a renewed focus on dealing with these scams, which destroy people’s lives?

I can absolutely give that commitment. These scams, which to some people appear victimless, are sadly anything but. The connection to serious mental health issues that follow is sadly all too clear, and many of us in our constituency work have come across individuals for whom these events have resulted in extreme suffering and sometimes even worse.

It is staggering that fraud now accounts for almost half of crime, yet barely any of those crimes are investigated, and less than 0.1% of them make it to court. Hardly anything seems to be being done to upgrade police technology and practice to help deal with that. Seriously, what are the Government doing that will make any sort of difference?

The hon. Lady will have heard only a few weeks ago that we launched our new fraud strategy, which includes 400 officers in the national fraud squad and increased resources of some £400 million to help police forces across the country. A lot of that work has already started, and a lot of it still has to be done. We are making sure that that focus is there because, as she correctly says, 40% of crime is fraud. The UK, sadly, has received too many attempts to defraud our people, for several reasons. One reason is the way our banking system works and the speed of banking in the UK, and another is the English language, which I am afraid makes it significantly easier for fraudsters overseas to act against our people. It is true that a significant amount of that crime is not here in the UK but abroad, so working with partners around the world is important.

There were 3.7 million instances of fraud last year. Will the Minister say why only 0.1% of cases make it to court?

We are working on that challenge with the Ministry of Justice, and the hon. Gentleman is right to highlight it. Often, the reason is that many of those crimes are committed abroad or are not followed up. Sometimes, that is because people are embarrassed to report them, which is a great shame because they should not be embarrassed—they are crimes like any other. Often, it is because it is very difficult to collect evidence. That is exactly why we have launched the new national fraud squad to help police forces across the country, working with the regional and organised crime units to bring not just the evidence but eventually the prosecution through the Crown Prosecution Service, to make sure that we have not just reports of fraud but prosecutions and convictions.

Just over a year ago, the anti-fraud Minister Lord Agnew resigned in anger at the billions being lost and written off in covid fraud payments. He said to the Treasury Committee on which I sit:

“There is not anybody who would condone a weak system that allows money to fall into the laps of crooks, and that is what I saw happening.”

Lord Agnew was a Conservative Minister. Can the Minister tell us what has changed, if anything, such as the amount of money in covid fraud payments recovered or the attitude of the Treasury?

As the hon. Lady knows well, this Government take fraud very seriously in these matters. I say that with absolute confidence because we have just worked up a national fraud strategy for the first time in many years. We have the money and the commitment, and now we have the officers behind it. This is an extremely important area of crime that we have been taking seriously in order to ensure that it reduces alongside other areas of crime. That is exactly what this Government will do.

I call the shadow Minister.

That is a slightly strange question, because fraud is in the Crime Survey of England and Wales, so I simply do not understand which surveys the hon. Lady is looking at. She may be thinking of the crime surveys before 2010, which are hard to compare because Labour did not count fraud—but we do.