UK to Launch Online Fraud Taskforce

The UK government has announced the creation of a new specialist team set up to prevent online fraud.

As reported recently by Security International, UK consumers lost up to £3.5 billion last year in mass marketing and phishing scams. According to recent research by the Office of Fair Trading (OFT), 73% of adults have received a scam email in the past 12 months.

Announcing the formation of an OFT and Trading Standards team to tackle this growing problem, Consumer Minister Kevin Brennan said the government would be investing over £4.3 million over the next three years in the initiative. Brennan said: "The internet presents massive opportunities for consumers, but unfortunately it also harbours fraudsters who can leave consumers upset and out of pocket."

Consumer scams

January's report by the National Fraud Agency (NFA) revealed the £3.5bn figure lost by consumers in scams last year. With internet shopping becoming ever more popular, the NFA's report said that fraudsters' and criminals' consumer scams were becoming increasingly sophisticated. The NFA's superintendent, Baroness Scotland QC, called for better fraud detection and prevention in order to protect consumers.

Brennan said: "As they get more sophisticated, we need to stay one step ahead. Our investment will help the OFT and Trading Standards to put in place the new specialist teams, training and technology required to take the fight to these criminals."

Brennan added that the OFT has already set up a dedicated laboratory and its staff are receiving training in using new detection equipment and systems.

Email scams

The new task force's remit will cover a wide range of work including email scams, fake products and ticket scams. A particular area of focus will be websites that purport to sell products to consumers at bargain prices, but which result in consumers receiving nothing at all or counterfeit goods.

Heather Clayton, a senior director of the OFT, explained that the team would examine the activities of a wide range of commercial websites. She said it would have the power to take action in cases where consumers' rights were being abused.

The team will work closely with other agencies where appropriate including local Police forces, the Metropolitan Police's specialist e-crime unit, the Serious and Organised Crime Agency and Companies House. The OFT will act as a central co-ordinator between different agencies, deciding who will take action on a particular case.

Source _ Security International's UK Correspondent

Recent related news:

UK fraud losses up to £30bn a year

Further information:

Fraud detection

Fraud prevention