Description
'Inaction Fraud' hotline has been criticized by MPs Britain is a "safe haven" for fraudsters, with less than 1% of reported cases resulting in charges, according to a damning report on the government's handling of the growing problem. MPs on the Public Accounts Committee criticized "slow progress" in tackling the estimated 3.8 million fraud incidents and fraud attempts.
They said they were "deeply disappointed" with the progress made by the government, as fraud accounts for 41% of all crime in England and Wales.
The criminal justice system's current approach to penalizing and convicting fraudsters is insufficient to prevent the UK from being seen as a haven for fraudsters.
“Many of the same problems persist and there are still no signs that the government has control over the fraud or an adequate strategy to deal with it,” said its report published on Friday.
Estimates put the cost to individuals at £4.7bn, while the potential cost to businesses is impossible to quantify, with victims "must pay the price".
The Home Office's approach has been criticized as "slow" as the UK's "immature" foreign criminal justice agencies fail to address international elements.
Deterrence is also failing because less than 1% of the roughly 900,000 frauds reported each year in England and Wales result in an offender being charged or prosecuted, according to the report.
The committee accused the Fraud Action Hotline of failing victims, saying it had earned the nickname "fraud by inaction."
Given the pervasive and damaging effects of fraud on business, individuals, and society, this is an extremely poor performance that the government is not even capable of fully understanding the scope of, let alone reducing the prevalence or harm.
Police morale was shaken by investigations that often lasted longer than the sentences handed down to criminals, he said.
"We are concerned that for many people, reporting fraud may be their only contact with the police, and negative experiences of reporting fraud risk undermining public trust in the police in general," the MPs said.
"The criminal justice system's current approach to punishing and convicting fraudsters is insufficient to prevent the UK from being seen as a haven for fraudsters."
Dame Meg Hillier, the Labor chair of the multi-party committee, said there was "just no sign of the government getting a grip on fraud."
"Given the pervasive and damaging effects of fraud on business, individuals and society, it is an extremely poor performance that the government is still unable to fully understand the scope, let alone reduce the prevalence or harm," he said.
"Opportunities to prevent further harm are lost and public confidence in law enforcement is undermined."
We cannot allow these gangs of parasites to continue robbing workers and retirees of their hard-earned wages and savings, while the government sits idly by and pretends there is no problem.
The Home Office responded: 'This government is absolutely committed to cracking down on fraud and we will soon be launching our anti-fraud strategy which will set out a coordinated response from government, law enforcement and the private sector to better protect the public and increase the interruption. and the prosecution of fraudsters.
"We have also committed £400 million over the next three years to strengthen the law enforcement response to fraud and economic crime."
The Home Office announced its three-year plan to tackle money laundering and economic crime on Thursday, but the Labor Party urged Prime Minister Rishi Sunak to outline his anti-fraud strategy.
Shadow Attorney General Emily Thornberry said: "It's been five months since Rishi Sunak stood in the House of Commons and promised he would 'soon' launch a new anti-fraud strategy, with 'a more unified and coordinated across government and the law 'enforced'.
“Not only has this strategy failed to materialize, but as this report shows, government failures on fraud are now more egregious than ever.
“We cannot allow workers and retirees to continue to see their hard-earned wages and savings watched by these gangs of parasites, while the government sits idly by and pretends there is no problem.”
PA files
Access
