Article by Phil
Quilter has made some interesting discoveries about the extent of online fraud from a recently submitted Freedom of Information request.
It seems that there were 3.7 million incidents of fraud in 2019 (bear in mind that these figures are already two years out of date) and only 1 in 5 of these were actually reported to the authorities.
Of these reported cases just over 5,000 resulted in a prosecution, that’s 1 in 140 of the reported cases.
The average sentence was 20 months and the average fine just over £400.
The number of convictions was actually 10% lower than the year before as well!
So despite the increasing prevalence of online fraud which we have been regularly reporting on, it seems that actions are not speaking louder than words, despite what’s being promised.
Having said that the FCA has just secured the conviction of a fraudulent financial adviser, who received a four-year sentence. Ian Hudson had been trading as an adviser despite not being regulated and authorised by the FCA from 2008 to 2019, an 11-year period.
Also, there has been more positive action from Google.
Hot on the heels of their latest authorisation requirements to comply with the rules on Financial Promotions, Google are introducing a new “three strikes” advertising policy from September 2021. Under the new rules advertisers will be issued with a warning from Google if they breach advertising policy. If the issue continues the account will be placed in temporary suspension and ultimately closed down if the breaches persist. This is very proactive action from Google.
The advertising policy covers a broad range of adverts including, guns, other weapons, and tobacco, but importantly “dishonest behaviour”. It is hoped that this will be a wide enough remit to catch unregulated financial promotions, which are by their nature often dishonest.
Let’s hope so, but well-done Google.
The Government has also just announced a further investment into tackling online fraud. The plan sees the focus moving away from Action Fraud with the funds invested into the National Crime Unit instead. Whilst this is welcome, PIMFA (Personal Investment Management & Financial Advice Association) are concerned that the extra funding ignores the fundamental fact that only a fraction of fraud is actually reported.
