Scamming: Vulnerable Individuals — House of Commons, 2016-09-08
Topic: Domestic Commerce
Patricia Gibson (Scottish National Party, Centre-left): I am delighted to co-sponsor the motion and this important debate along with the hon. Member for Solihull (Julian Knight), with whom I have sparred in the past but with whom I am in complete agreement today The cost of scamming in our society is undoubtedly huge and cannot be counted only in terms of pounds and pence, although the financial cost is significant. Scamming affects the elderly and other vulnerable members of our communities, not exclusively but disproportionately, and the problem is becoming greater with each passing day. The Office for National Statistics predicts that by 2030 the number of elderly people living in our communities will increase by 34%, from 11.6 million to 15.7 million, and the number of people living with dementia will increase from 850,000 to 2.1 million The people who perpetrate scams use sophisticated techniques to scam their victims, repeatedly in some cases. Trading standards, although already hard-pressed, is working on the front line to do all that it can to safeguard the vulnerable. The most sinister, cynical and cruel aspect of scamming is that it is criminal activity which targets those who are most vulnerable in their own homes. The one place where any of us should feel safe becomes the setting for people being conned out of their money via sales scripts, data collection and targeted mail. Scams can involve, for instance, pension fraud, bogus equity release schemes, fictitious prize draws, false investment opportunities, upfront payments to release lottery wins, upfront payment for building work that is either never started or never completed, and investment scams. The most common telephone scams are cold calls. I hope that everyone who is in the Chamber today will feel able to support my ten-minute rule Bill on cold calls next week. I do not have time to talk about it now, but it is fascinating The impact of scams goes far beyond financial loss. It is emotional and psychological, and has even been shown to have an impact on physical wellbeing. At worst, it can ruin lives and split families, with the consequences lasting long beyond the initial trauma of financial loss. Moreover, even when financial losses are comparatively low, scams lead to a breakdown in consumer confidence. The full effects of the harm caused by them is difficult to estimate, as only about 5% of victims report that they have lost money. We know that the average victim loses about £1,000, but we also know that many lose hundreds of thousands of pounds. We know that victims of scams often feel embarrassed, and are afraid that their families will judge them to be no longer capable of living alone. For that reason, scams may not be reported, which leaves the victims open and vulnerable to repeat scams. Some people find it extremely difficult even to admit that they have been victims of a crime We should not forget that the impact of dementia and other impairments makes vulnerability much more pronounced and the ability to target an individual repeatedly much more possible. As we heard from the hon. Member for Solihull, it has been demonstrated that victims of scams are nearly two and a half times more likely to require increased care provision, or to die within two years of being scammed. It has also been reported that victims often experience a rapid drop in their physical health after realising that they have been scammed The scale of the problem and its associated costs are absolutely huge. Alongside this growing problem, we all know that trading standards are struggling to cope, although the work they do is worthy of very high praise and demands our respect. I also want to highlight the excellent work carried out by CIFAS, which works to prevent fraud and financial crime through the sharing of confirmed fraud data. Last year, CIFAS prevented more than £1 billion in fraud loss by sharing data across sectors. Its data show that in 2015 in my own constituency of North Ayrshire and Arran, 278 frauds took place and there were 103 victims of fraud. We know that that is a mere snapshot of the true level of fraud, which is likely to be much higher I want to single out for particular praise North Ayrshire Citizens Advice Service, which carried out a range of activities to promote Scam Awareness month, which was July, providing training to advisers, raising awareness of scams among clients, and working in partnership with local community groups, the third sector, Police Scotland, and Ayrshire College. It also worked closely with my local Member of the Scottish Parliament, one Kenneth Gibson, whom I mention purely in the interests of domestic harmony Scams do so much more than rob people of their money. They rob them of their confidence, their belief in themselves and in their judgment, their self-esteem, their willingness to trust people and the help they may be able to offer them, and ultimately their ability to live full, happy, independent lives. What makes all of us vulnerable to scams is shown by research carried out by Which? All of us are overconfident about our ability to spot a scam. Ironically, that makes us all the more vulnerable. The gap between confidence and ability is dangerous So what can we do about this problem? I absolutely agree with the suggestion put forward by trading standards that financial institutions should recognise that clients with dementia are by definition more at risk of being scammed and that measures need to be taken to protect that group as a duty of care. Those who are diagnosed with dementia live with a cognitive impairment and that must be recognised. The sharing of personal details and information with other organisations should require a clear opt-in, as opposed to an opt-out. The normal default position of charities and other organisations should be that personal details are not passed on or shared, except to report a safeguarding concern where there is a suspicion that a person may be at risk of harm from scamming In addition, customers should be able to formally notify their bank in writing that they feel at risk and request that all transactions over a certain amount to new payees have a 24-hour delay before being processed. That will give time for the proposed transaction to be challenged and potentially stop scammed money from leaving a scam victim’s account Those eminently sensible and fairly straightforward measures would do much to protect those most at risk of scamming—the elderly and the vulnerable in our communities. I urge the Minister to reflect on those proposals to help us to tackle the problem that confronts people who are robbed in their own homes and subsequently find the experience scarring. The effects are far reaching. Let us do more to protect the victims of scams. It is the least we can do.