UK Prime Minister Rishi Sunak is unveiling a new strategy to combat financial fraud, which costs £7 billion annually and accounts for 40% of crimes committed in the country.
Rishi Sunak, the prime minister of the United Kingdom, blasted the widespread financial fraud and is announcing a new strategy to combat it on Wednesday.
Britain combats financial fraud
Fraud commits 40% of crimes. We spend around £7 billion a year on it, and we are aware that the money goes to supporting terrorism and organized crime. Additionally, new technology make it simpler to pull off these frauds and more difficult to stop them, according to Sunak.
“It’s time to stop these crimes, which can destroy lives and livelihoods in a matter of seconds, by fighting back against scammers and fraudsters.”
An end to cold calling
Globally, online fraud and scams are on the rise. Con artists utilize boiler room scams to entice victims with big financial returns.
Sunak’s fraud-fighting strategy has three areas of focus. Firstly, the UK government will ban “SIM farms” used by thieves to send fraudulent SMS to large numbers of users simultaneously. Secondly, the government will collaborate with the Office of Communications to tackle number “spoofing,” where fraudsters pretend to be from legitimate companies such as banks or phone companies. Finally, the strategy includes a crackdown on bank transfers made to fraudulent accounts.
Additionally, the UK will outlaw any cold calls for financial items. Due to this restriction, those who receive calls pitching bitcoins or other high-risk investments will know they’re being scammed.
The UK’s strategy to combat financial fraud
Sunak said that modern technology has created new avenues for criminals to send fake messages and bombard people. His focus is on blocking these communication channels used by fraudsters. Over 41 million British residents received calls and texts last summer, according to the BBC.
In addition, the UK will establish a new National Fraud Squad, which will handle complaints about fraud, under the direction of the National Crime Agency and the City of London Police. The UK agencies will also collaborate with overseas counterparts to share and collect data on fraudsters.
Additionally, the UK will spend £30 million to create a fraud reporting center and work with IT firms to make reporting fraud very straightforward. In addition, the UK government wants to give banks additional processing time so they can check into questionable transfers.
“Our strategy will assist in defending you and your loved ones against these frauds and the predators that carry them out. The time has arrived to put an end to the scammers’ operations. And I’m committed to achieve that,” Sunak continued.