Cifas urges “decisive action” over Online Safety Bill amid fraud spike

The latest figures reveal that there have been upwards of 309,000 cases recorded to the National Fraud Database, which is up 17% when compared to the same period for 2021.

Identity fraud remains a serious concern, accounting for 68% of cases filed to the National Fraud Database. Cases have risen by 34% in 2022 when compared to 2021, with the majority of these (ie 86%) as a result of online channels.

As the cost-of-living crisis deepens, there’s genuine concern that a growing number of individuals may become victims of phishing campaigns and online fraud aimed at stealing financial and personal information.

The latest Cifas research has revealed that more than seven out of every ten people have been targeted by scams such as false discounts from energy and insurance companies, as well as online adverts offering shopping discounts and ‘celebrity-endorsed’ bogus investment opportunities.

In addition, a number of social media platforms are being used by criminals to offer fake opportunities to work from home and make money quickly. These adverts are specifically aimed at those struggling financially as a result of the ongoing economic uncertainty.

Discussions in Parliament

With the latest amendments to the Online Safety Bill due to be discussed by MPs ahead of the Christmas recess, Cifas is urging the Government to take urgent action in order to avoid a growing number of individuals falling victim to scams.

The Online Safety Bill will ensure that platforms which host user-generated content and search engines will have a Duty of Care to make certain that users are better protected against fraud.

Mike Haley, CEO of Cifas, noted: “The majority of fraud and financial crime starts online. The increasing use of digital technology has led to greater opportunities for criminals to commit fraud. If we’re going to respond effectively to these new and emerging fraud threats, it’s crucial that we keep pace with the ever-evolving methods of fraudsters.”

Haley continued: “I’m pleased that the Government at last recognises that social media platforms and search engines must take greater responsibility for protecting consumers. The Online Safety Bill is a one-time opportunity to protect millions of consumers from fraud. As criminals continue to take advantage of people struggling with the cost-of-living crisis, the Government needs to take decisive action as a matter of urgency.”