In the wake of calls for immediate reform of the current (broken) system for dealing with fraud, the UK government has unveiled its new Fraud Strategy for 2023, which aims to take a more comprehensive and collaborative approach to tackling fraud. The strategy recognizes that fraud is an issue that affects not only individuals and businesses but also the government and the wider economy.
In this article, we will highlight the key points of the strategy, provide an opinion on its effectiveness, and explain why the current approach to tackling fraud – ‘Action Fraud’ – is not fit for purpose.
Key Points of the Fraud Strategy 2023
The Fraud Strategy 2023 sets out five key objectives to tackle fraud:
- Building resilience: The strategy aims to strengthen the UK’s ability to prevent and detect fraud by improving the fraud prevention infrastructure, sharing intelligence, and building partnerships between the public and private sectors.
- Pursuing offenders: The strategy focuses on increasing the number of successful prosecutions and ensuring that the penalties for fraud are appropriate and effective.
- Supporting victims: The government aims to improve support for victims of fraud by providing better advice and guidance, working with third-party organizations, and ensuring that victims have access to the help they need.
- Reforming the system: The strategy aims to reform the legal and regulatory framework for tackling fraud, with a particular focus on improving the use of technology and data.
- Raising awareness: The government aims to raise awareness of fraud and its impact on individuals and businesses by providing better education and information.
Effectiveness of the Fraud Strategy 2023
The Fraud Strategy 2023 is a step in the right direction, and it’s encouraging to see that the government is taking a more collaborative and holistic approach to tackling fraud. However, the strategy will only be effective if it is adequately resourced, and the government follows through on its commitments. Plainly, fraud is a complex issue, and it will take time to see the impact of the strategy.
One potential issue with the strategy is its focus on increasing the number of successful prosecutions. While this is undoubtedly an essential part of tackling fraud, it’s not clear to us that the state has the resources to increase its number of successful prosecutions, which is why we see private prosecutions continuing to play a constructive part in supporting the government’s vision. Of course, prosecutions are not the only solution. The government also needs to focus on prevention, detection, and support for victims. The strategy should be seen as part of a broader approach to tackling fraud, rather than a silver bullet.
Why the current approach to tackling fraud ‘broken’
Action Fraud is the UK’s national reporting centre for fraud and cybercrime. However, in recent years, it has been criticized for being inadequate and not fit for purpose. The criticisms have come from various quarters, including leading politicians, law enforcement agencies, and consumer groups.
One of the main criticisms of Action Fraud is that it is difficult to use and does not provide adequate support for victims of fraud. In our significant experience in helping the victims of fraud, the reporting process can be time-consuming and confusing, and victims do not receive the support they need to deal with the aftermath of the crime. This has led to concerns that victims may be discouraged from reporting fraud, which can lead to a significant under-reporting of these crimes, ultimately leading to the government failing to act properly to deal with the issue, which some commentators have described as now being a matter of national security.
There have been concerns repeatedly raised that Action Fraud does not have the resources or expertise to investigate fraud cases effectively, and indeed, we have had experience of frauds being referred to very junior police officers who have openly admitted to us they have no previous experience of ever dealing with fraud. This has resulted in a low rate of successful prosecutions for fraud in the UK, and naturally an increase in private prosecutors conducted by experienced fraud practitioners.
It is not just the public and fraud practitioners that have this view. Leading politicians have been among the most vocal critics of Action Fraud.
- In 2020, the UK’s Public Accounts Committee published a report that was highly critical of the reporting centre. The report stated that “Action Fraud is not fit for purpose” and that it “lacks the capability to provide the level of support that fraud victims need.”
- In March 2021, the Shadow Home Secretary, Nick Thomas-Symonds, called for the immediate reform of Action Fraud, stating that “the system is broken.” He argued that the current reporting process is confusing and that victims are left without adequate support.
Across the board, there have been calls for urgent reforms to address these issues and it is clear to see why the government must act urgently, which we support, and will continue to support by helping to fill the gap left by the government and ensure that fraudsters are held accountable for their actions, in enabling individuals, businesses, or organizations, to pursue criminal or civil cases, when they have become victims to this heinous crime.
Comment
The Fraud Strategy 2023 is a positive step towards tackling fraud in the UK. The government’s focus on collaboration, prevention, detection, and support for victims is welcome. However, the strategy will only be effective if it is adequately resourced, and the government follows through on its commitments. Ultimately, tackling fraud requires a multi-faceted and collaborative effort, involving the government, the private sector, and society as a whole. We see private prosecutions continuing to be an essential tool in tackling fraud, but they should be seen as part of a broader approach to tackling the issue.
Ashley Fairbrother