Scamming: Vulnerable Individuals — House of Commons, 2016-09-08
Topic: Domestic Commerce
Carolyn Harris (Labour, Centre-left): I wish to congratulate the hon. Members for Solihull (Julian Knight) and for North Ayrshire and Arran (Patricia Gibson) on securing this most important debate. I also pay tribute to all those who have spoken today as their contributions have helped us to discuss this very important issue Scamming is an increasing problem in our communities, mostly targeting the elderly and vulnerable. The average age of a scam victim is 74. Given that the Office for National Statistics predicts that the number of elderly people in our communities will increase considerably to more than 15 million by 2030, the potential number of scamming victims is likely to increase as well It is not only the financial loss that causes pain, but the severe psychological and emotional wounds that can take considerable time to heal. Victims will inevitably suffer financial loss, and very often depression or even relationship breakdowns. What is terrifying is that, potentially, a third of all victims of scams will fall prey to another scam within 12 months Mass-mail scams alone cost the UK consumer between £1 billion and £5 billion every year, with an average loss per person of £1,000. It has been known for victims to lose up to £1 million of their savings. This week, a gentleman told a drop-in for scam awareness that he had lost his home to a scammer. There are more than 190 trading standards services across the UK, each working to tackle scams in their area. However, cutbacks and budget pressures mean that the number of officers working on the frontline has fallen by 53% since 2009. Some service areas are running with fewer than one professionally trained member of staff The current budget for trading standards services across the UK equates to just £1.99 per person per year. These local teams are in place to step in when a victim of a financial scam is identified and to work with the police to help bring justice. However, the fact that only 5% of victims report crimes, often due to embarrassment, means that criminals continue to scam vulnerable people of their savings with little consequence The National Trading Standards scams team was founded in 2012 and identifies vulnerable individuals to the local authority teams by using captured criminal databases. The team shares a £13 million target along with other financial crime teams, which is shockingly low when we consider that financial scammers cost UK consumers between £5 billion and £10 billion every year. National Trading Standards could tackle this issue more effectively in partnership with other Government agencies, such as adult social care and the police, by sharing intelligence and safeguarding victims. However, both bodies are experiencing their own limits on resources, reducing the opportunity for partnership with National Trading Standards. Safeguards against scams, harm and abuse need to be an integral part of care and support. This is a perfect example of this Government cutting funding to vital services, which has a detrimental effect on the public A vital tool in combating financial scams is consumer awareness. Many websites sell direct marketing leads to any purchaser without restriction. Many websites allow people to purchase lists of personal details for "market research". However, those people do not necessarily have to represent a business to use them. One such site that I identified was Targets Located, which has a top 10 of people to be scammed. Disabled car buyers is at No. 1, with 390,000 people receiving the high rate mobility component of DLA—they are ripe for the picking. Second is high-stake shareholders. The third place belongs to people who regularly donate to charity. Such sites are making sure that, for a small fee, people can acquire the personal details of the most vulnerable people in our society. Regulation on the sale of personal data would dramatically reduce the number of vulnerable people falling victim to financial scams To tackle the issue of scamming, the Government seriously need to review police funding. Police resources are already suffering as a result of police budgets decreasing year on year. Should that be allowed to continue, we will see more scams being carried out in all our communities. Co-operation between trading standards and the police is vital but it can only happen if both services are given the funding for resources that they so desperately need. We have a moral responsibility to protect the elderly and vulnerable in our society. We must ensure that the resources to do that are made available to the professionals who have the skills to best offer this protection.