User-generated fraud to be included in online safety bill
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The government has included user-generated financial fraud in its online safety bill after lobbying from the finance and pensions industry, but fraud through advertising, emails or cloned websites remains out of scope.
An online safety bill has been drafted so the government can hold companies hosting user-generated content to account on harmful content ranging from racist abuse and suicide content to child sex exploitation and terrorism.
Bill excludes advertising, emails and clone websites
The bill originally excluded financial harm, but after lobbying from the pensions and finance industry, the government has now said it will include user-generated financial fraud.
However, fraud via advertising, emails or cloned websites will still not be in scope. The government said this is “because the Bill focuses on harm committed through user-generated content”.
It said it was “working closely with industry, regulators and consumer groups to consider additional legislative and non-legislative solutions”, with the Home Office due to publish a Fraud Action Plan after the 2021 spending review and the Department for Digital, Culture, Media and Sport to consult on online advertising, including the role it can play in enabling online fraud, later this year.
Industry books it as a win
Investment and pension fraud moved largely online after cold-calling was outlawed in 2019. The issue of online fraud was highlighted as part of an inquiry by the Work and Pensions Committee into scams and pension freedoms, with providers, enforcement agencies and scam victims illustrating the scale of investment and pensions fraud when giving evidence.
The industry has welcomed the news that user-generated fraud will be included in the bill, with Kate Smith, head of pensions at Aegon, saying the provider is “absolutely delighted that the Government has listened to the pension industry’s concerns and included financial scams, including pension and investment scams”.
She said pension and investment scams have flourished during the pandemic as fraudsters have exploited people's increased reliance on digital.
Bill must be 'ambitious and flexible'
The bill will now be scrutinised by a joint committee of MPs before being introduced into parliament.
Smith said it was important the bill “is ambitious and flexible enough to deal with the constant evolving nature of scams, forcing online scams adverts and websites to be taken down quickly to minimise harm”.
The announced Fraud Action Plan, setting out joint actions and responsibilities across government agencies, “needs to be a living document enabling trends to be spotted quickly with decisive action to be taken against fraudsters and importantly making it clear who people can contact for help if they believe they’ve become a victim of a scam”, she added.
What are your thoughts on the inclusion of user-generated fraud in the bill? How should advertising, clone websites etc be dealt with?
