The Government has finally opened a consultation on plans to outlaw cold calls for all financial products, three months after first revealing the proposals as part of its Fraud Strategy.
The eight-week consultation will cover proposals to ban cold calls offering any financial products to clamp down on fraudsters seeking to trick people into buying fake investments. Ministers claims that, once in force, people receiving a cold call offering these types of products will know that it is a scam, and fewer people will become victims.
Fraudulent investment schemes represent a significant threat to the UK economy, consumers, and society, with victims losing £750 million between 2022-23, according to data from the City of London Police.
A specialist team which provides support to victims of fraud, known as the National Economic Crime Victim Care Unit, has also been rolled out to all 43 police forces across England and Wales since the Fraud Strategy was announced.
Part funded by the Home Office, the service has existed as part of City of London Police since 2015, and is estimated to have stopped more than £2.8m being lost to fraud, although that only represents a tiny fraction of fraud cases.
Nevertheless, last year its teams supported more than 113,000 victims and its rollout to all police forces will ensure more people receive the help and support they need, the Government insists.
Security minister Tom Tugendhat said: “Fighting fraud is at the heart of our campaign to fight crime. The National Economic Crime Victim Care Unit and the cold calling consultation are delivering on our pioneering Fraud Strategy.
“Fraud doesn’t just lead to financial loss, it can destroy confidence and lead to severe stress. That’s why it’s so important that victims get the best possible care and support.
“The cold calling consultation is an important step forward in our efforts to block fraud at source. It will have a major impact once it is in force.”
The Information Commissioner’s Office has also waded in, urging Brits to report nuisance calls, texts and emails they receive.
The ICO says it has issued more than £2,440,000 in fines against companies responsible for nuisance calls, texts and emails in since April 2022.
Despite criticism that the regulator has yet to recover many of these penalties, it maintains it takes “a robust approach” to companies who have been fined but refuse to pay. Earlier this summer, it was granted court orders to wind up four companies who had failed to pay the fines it had issued.
ICO head of investigations Andy Curry said: “Nobody should be made to feel uncomfortable after simply answering the phone. People register with the TPS for a clear reason: to stop unwanted marketing calls and protect their privacy.
“If you are clear you don’t want calls, and still receive them, our message is simple: hang up the phone, and report the call to us. You don’t owe nuisance callers your time or your courtesy, and we fully support proposals to ban cold calling on financial products and services.”
However, industry chiefs maintain the proposed crackdown could be doomed before it is even passed. They are quick to point out that many calls are made from overseas, out of the jurisdiction of the ICO, while advances in AI technology like voice cloning, which can imitate the sound of relatives, are tailor-made to make future scams even more convincing.
NordVPN cybersecurity expert Marijus Briedis recently warned: “Consumers must stay vigilant. Remember the only way to stay safe online and on mobile phones is to refuse to give out personal information to anyone who calls you.”
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