UK MPs are urging the Government to legislate mandatory reimbursement for victims of authorised push payment fraud and to implement new rules aimed at curbing social media scams perpetrated by Big Tech.
A recent report from the cross-party Treasury Select Committee emphasizes the need for the Government to “push harder and act faster” in response to the escalating fraud epidemic. The report calls for legislation against online fraudulent advertisements and advocates for accountability from major online platforms regarding scams that occur on their sites.
The Committee is pressing for the introduction of mandatory reimbursement for victims of authorised push payment fraud, a matter that has already gained attention from regulators and industry watchdogs.
In addition, the report outlines several other key recommendations. It emphasizes the necessity of adequately resourcing law enforcement to combat the growing scale of fraud. The Committee suggests exploring the establishment of a dedicated law enforcement agency focused on tackling economic crime and stresses the need for better regulations to safeguard consumers from fraud and money laundering, particularly in the cryptoasset sector.
Furthermore, the Committee proposes increasing company formation fees and reforming Companies House to prevent fraudsters from disguising their identities behind UK businesses to facilitate money laundering and other criminal activities. It also urges the Government to clarify the legislation currently in development that could be integrated into an Economic Crime Bill.
Mel Stride, chair of the Treasury Committee, stated: “For too long, pernicious scammers have acted with impunity, ripping off innocent consumers with fraudulent online adverts, impersonation scams, and dubious crypto investments. Unfortunately, fraud has soared during the pandemic, and we have heard heart-breaking stories from individuals who lost significant amounts of money to these criminals.”
He added, “Some of our recommendations, such as legislating against online scam adverts, can be implemented quickly. Others, including crypto regulation and Companies House reform, will require a longer-term approach. Together, our proposals provide the UK a fighting chance to effectively tackle these scams.”