Is the Home Office Failing to Take Fraud Seriously...

Almost £430mn was lost last year in the UK through debit and credit card fraud alone, according to APACS, the UK Payments Association. Cheque and online banking fraud accounts for a further £30mn and £33.5mn respectively. With these proceeds commonly used to finance terrorism and organised crime, there’s no doubt that fraud is serious crime.

Yet under new rules introduced by the Home Office in April victims of these types of fraud will no longer be able to report suspected incidents directly to the police. Instead, their first port of call will be their bank or card issuer, who will then have the choice whether to report the incident or not.

The Conservatives have claimed that these new rules are just an attempt to reduce crime statistics and risk downgrading the seriousness of fraud as a criminal offence. In response, the Home Office has highlighted how giving the banks discretion to decide which incidents to report will help prevent valuable police time from being wasted investigating cases where there’s not enough evidence to support prosecution; although it’s questionable how the police could decide this without an investigation.

Industry representatives have emphasised that banks have no interest in concealing cases of fraud - they’re more likely to get their money back if fraudsters are caught. However, in the absence of an independent watchdog in theory there’s nothing to stop them from covering up minor cases or cases involving their own staff. A recent report by BBC 2’s Newsnight programme revealed that two police forces in the UK have not investigated a single new fraud case since the new rules on reporting were introduced.

Either way, prevention is better than cure – the best way to deal with fraud is to prevent it from happening in the first place. So to minimise the risk of becoming a victim of fraud, treat your cards like cash, keep your pin and passwords confidential and re-direct your mail – I’ve recently had bank cards sent to two ex-tenants posted through my mail box. If you shop online, make sure your computer is virus protected and don’t make purchases through public computers.

Regularly check your bank statements for unusual transactions – and if you come across anything suspicious then call your bank or card issuer immediately (not the police!). If you’ve acted reasonably to protect your money, the most you can lose is £50. However, if you’ve been careless (such as keeping your pin written down in your wallet) you could be liable for the full amount stolen. So be smart and keep safe.

Adela Read
Financial Journalist

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