Government responds on Fraud

The Government has published its response to the House of Lords Fraud Act 2006 and Digital Fraud Select Committee report on “fighting fraud: breaking the chain”.  Among its responses to the recommendations are:

• a recognition of the need for improved information on fraud, but highlighting work already done by Ofcom;
• agreeing that parliamentary oversight is important as the remit of regulators evolves;
• in relation to the recommendation that all online platforms should allow financial services advertisements only from authorised firms, noting that the Online Safety Bill will further strengthen requirements on these platforms, who have already taken significant action and also noting the introduction of the financial promotions approval gateway;
• in response to the recommendation that companies should stop identifying customers by phone by confirming personal information, pointing out the SCA standards in the financial sector;
• agreeing that the private sector should continue to develop initiatives to support customers;
• in response to the recommendation that certain payments should be delayed by a few hours, noting that the Government is considering whether to allow PSPs to delay payments beyond existing legislative timescales;
• noting that CoP coverage will now extend to 99% of payments made over Faster Payments;
• supporting the extension of the Banking Protocol to cover phone and online transactions and allow police to visit customers at home;
• in response to a recommendation that FCA should conduct a thematic review of retail banks to understand how easy it is for fraudsters to open accounts, pointing out the work FCA has already done and its existing expectations;
• noting FCA’s work with the PSR on fraud risks, particularly APP frauds and the existing requirement for all crypto asset exchange providers and custodian wallet providers operating the in UK to be registered for AML supervision;
• recognising the need for regulation of crypto-related activities;
• initiatives to raise awareness of what money muling is;
• that the Government considered extending the AML levy to fraud but that this was not a proposal that gained support; and
• recognising the urgency to address the need to reimburse victims of APP fraud.