Business & Investment

Quilters urge government crackdown on fraud

Quilter urged the government to take action to curb the dramatic increase in online investment fraud last year by including these and other economic hazards within the scope of the upcoming online security bill.

In a letter to Prime Minister Boris Johnson and Minister of Digital Culture Oliver Dauden, Quilter CEO Paul Feney said that the online advertising program, which is the proposed solution to the problem, is “powerful. Does not provide good consumer protection. “

This follows a similar call from the Financial Conduct Authority (FCA) in September, which requested the government to include fraud in online harm laws.

Cases of investor-related fraud are often associated with the “reproduction” of legitimate financial services business websites and marketing materials, which surged in 2020. Repeated warning from FCA, And action fraud estimates losses of £ 78 million, which is equivalent to an average of £ 45,242 in individual cases.

According to an analysis of the FCA warning list by quilters, “clone” investment fraud has increased by more than 600% since 2010, accounting for more than one-third of all FCA warnings issued in the last decade. I will.

In January, Quilter called on the government to create a legal framework to address the extreme increase in spoofing fraud. The company has launched its own tool for reporting this type of scam.

By including investment fraud and other financial harm in the online safety bill, Quilter said, “Search engines and social media platforms are legally responsible for the content displayed on the site, ensuring that users are careful. I guarantee you will bear the burden. ” Not exposed to financial harm. “

In an open letter to the Prime Minister, Quilter could dismiss the bill “if it doesn’t include online investment fraud” and “an important opportunity to take decisive action.” He said he was concerned about it.

“The online safety bill was not, of course, designed with investment fraud in mind. I understand the government’s concerns about including online fraud, but it is shown in the response to the white paper on online harm. I urge the government to reconsider the exclusion, as it does. There are several reasons. “

“Online investment fraud is becoming one of the most serious financial crime threats facing UK consumers and is therefore one of the key challenges for law enforcement agencies.

“We need holistic and collaborative action and action by the government, in addition to existing fraud prevention efforts, including the Ministry of Interior and the Ministry of Finance, rather than a single consultation issued solely by the Ministry of Digital Culture. I think media and sports.

“Therefore, we commend the government to reconsider its decision to exclude fraud from online security legislation so that consumers can receive stronger protection as soon as possible.”

Quilters urge government crackdown on fraud Quilters urge government crackdown on fraud

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