Draft Online Safety Bill Report — House of Commons, 2022-01-13
Topic: Mixed Topics
Stephen Creswell Timms (Labour, Centre-left): I congratulate the hon. Member for Folkestone and Hythe (Damian Collins) and his colleagues on the Committee on their work. In particular, as he knows, I warmly welcome the recommendation that paid-for advertising should no longer be excluded from the scope of the Bill My hon. Friend the Member for Tooting (Dr Allin-Khan) put me in touch with one of her constituents who had some experience of online scamming. He explained that he is an experienced fund manager who used to run his own investment management firm. Last February, he clicked on a link that offered suspiciously high returns because he wanted to see what the scam was. Over the following months, despite repeatedly telling every caller that he was not interested, he was subjected to a daily barrage of calls, which petered out only in October. He said: "When I started challenging them after a couple of months, they started becoming abusive… threatening to sue me for slander when I pointed out what they were doing was illegal…It actually became very stressful…Having warned Google many times, it fails to take action." We now have a well-established organised crime industry staffed by a large number of accomplished thugs, sustained by cheap and easy access to victims on Google and on Facebook. My interest arises, as the hon. Member for Folkestone and Hythe mentioned, from the Work and Pensions Committee inquiry on pension scams. In a letter to the Work and Pensions Committee last May, the chief executive of the Financial Conduct Authority told us that "fraud now accounts for one-in-three crimes in the UK, costing up to £190 billion a year. An estimated 86% of fraud is committed online…Action Fraud has told us that victims of pensions-related scams who had worked their whole lives to build a retirement fund had lost £82,000 on average…Online platforms, such as search engines and social media platforms, are playing an increasingly significant role in putting consumers at risk of harm by exposing them to adverts for financial products…Fraudsters have unprecedentedly cheap access to an online population of consumers who find it difficult to differentiate genuine offers from the fraudulent…There are ads online for firms that don’t exist, for firms that claim to be regulated but aren’t, for firms that claim to be based in the UK but aren’t and for clones of legitimate authorised firms." That is why I applaud so warmly the Joint Committee’s recommendation that the Bill should be broadened, as the Governor of the Bank of England said, to cover online fraud. I welcome the support for that move expressed in the debate I referred earlier to the Prime Minister’s statement to the Liaison Committee last July that "one of the key objectives of the Online Safety Bill is to tackle online fraud." However, the current draft of the Bill excludes most of the online fraud problem, so I urge the Minister to tackle it head on in the Bill. The public certainly want that; Aviva has published research concluding that 87% of the public want the Government to legislate to stop search engines and social media platforms promoting financial scams through advertising Until now, Ministers have said that the problem will be addressed by separate work on online advertising. That really is not enough. That work is proceeding at a snail’s pace. In February 2019, the Department for Digital, Culture, Media and Sport announced that it was considering the regulation of online advertising, but three years on, there has been no progress at all. We now understand that there will be another consultation later this year. It will be years before that work delivers, and in the meantime thousands will have lost their life savings and UK financial services will have suffered further damage. The Government must not surrender to organised crime. I urge the Minister to accept the Joint Committee’s recommendation.