The writer is Director of Policy and Advocacy at Which?
The race to become the next UK prime minister has turned a spotlight on the current government’s policy record and what a new leader might do differently.
One piece of legislation that is now under renewed scrutiny is the online safety bill. Its intended purpose is to make the UK “the safest place in the world to be online”. If made law, it has the potential to stop millions of pounds’ worth of scams every year, among other things. It would do this by making tech companies take responsibility for stopping the flood of adverts on their sites that are paid for by fraudsters to defraud innocent people and fund organised crime.
Yet the bill may now be in jeopardy. Delayed until a new Conservative leader is chosen, it has attracted criticism and suggestions of revision in the earlier stages of the contest and from backbench MPs. Any potential revisions must not be allowed to derail years of hard work that it is hoped will shield consumers from becoming victims of fraud.
The sums of money lost in this way in Britain are staggering. Last month, UK Finance released its annual fraud report, which found that £1.3bn had been stolen through fraud in 2021. Much of this cash leaves the country and funds serious organised crime around the world.
One of the big growth areas for fraudsters is bank transfers, where victims are tricked into transferring money to criminals. Consumers lost more than £500mn to these scams last year. That includes £171mn in bogus investments; £64mn in purchase scams, where victims pay for fake or non-existent products and services; and £31mn through romance, where victims are persuaded to make payments to someone they believe they are in a relationship with.
What these all have in common is that they typically start and flourish online. The UK Finance report noted that major platforms, such as search engines, social media and shopping platforms, represent most of our online activity, but too often they act as a conduit to fraud, rather than a barrier. Research from TSB found that fraud on Facebook and Instagram accounts accounted for more than eight in 10 of all online investment scams, despite these companies possessing some of the most innovative technology.
At Which? we have heard from countless victims over the past few years, many of whom have lost life-changing sums of money in the time it takes to make just a few clicks. The impact goes far beyond the monetary, and can end up having a devastating impact on people’s mental and psychological well being. Our calculations suggest that the cost to online scam victims’ wellbeing is equivalent to £7.2bn a year.
That’s why legislation to tackle this explosion of fraud by making tech firms take greater responsibility is so necessary and why Which? assembled such a broad coalition, ranging from consumer groups and other charities, to major banks and the City of London Police — on a campaign to ensure it was comprehensive enough to make a real difference.
The sophistication of online fraud leaves all of us vulnerable. Those who say they are too switched on to be scammed are either in a lucky minority or far too complacent about the determination and capacity of fraudsters to catch them out. Either way, we should all recognise that something must be done to shut down the free-for-all that criminals currently enjoy online.
The task for the next prime minister is to drown out the noise and focus on what can be achieved by this landmark legislation to make people safer. The candidates for the highest office in the land should commit to supporting the online safety bill and resist any attempts to water it down.
This is a golden opportunity to make the biggest tech companies take responsibility for stopping the flood of fraudulent content on their sites. Anything less would be a betrayal of scam victims.
