Crackdown on fraud

Thursday, 19 March 2009 12:00

The government is cracking down on fraud with the launch of a national strategy to fight the crime, which estimates suggest costs the UK £14 billion a year.

The three-year National Fraud Strategy will bring together 25 organisations that deal with fraud to help businesses and consumers who become victims of the crime.

It was developed by the National Fraud Strategic Authority (NFSA), an executive agency of the Attorney General's Office, which was set up in October 2008 to tackle fraud.

The attorney general, Baroness Scotland QC, said: "Fraud costs every person in the country £231 per year.

"I am very aware of the financial and personal misery frauds, such as e-mail scams, identity theft, mortgage and credit card fraud, through to Ponzi schemes and share sale frauds, can inflict on consumers and businesses.

"We are working to provide real help now to people and businesses to make it tougher to defraud them."

Industry bodies welcomed the move.

Stephen Sklaroff, director general of the Finance & Leasing Association, said: "Fraud often increases in a recession and motor finance companies have, therefore, already created a partnership with the Association of Chief Police Officers (ACPO) to investigate and recover vehicles obtained via fraud."

The initiative will see a new National Fraud Reporting Centre established and a National Fraud Intelligence Bureau, as well as extending Crown Courts' powers in fraud cases.

The strategy will also tackle the most serious fraud threats, such as identify and mass marketing fraud, and punish more fraudsters while improving support to their victims.

Fraud levels appear to have risen as the recession bites.

Apacs, the cards and payments association, said card ID theft losses - where a criminal obtains a genuine card and a genuine PIN - have increased by 39 per cent to £47.4 million over the course of 2008.

Card-not-present fraud losses increased by 13 per cent over the last year and account for 54 per cent of all card fraud losses, while counterfeit card fraud grew 18 per cent.

Phishing incidents and 'malware' attacks, where online banking customers are targeted, are also on the increase.

Apacs said it will be working with the NFSA to reduce fraud levels.

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