Consumer fraud costing £7 billion per annum
The House of commons Public accounts Committee have published a report which claims that scams and frauds (is there any difference ?) are taking up to £7 billion annually from the pockets of already stretched consumers in the UK.
Much of this fraud is now apparently being achieved online, where regulation and application of the law is still trying to catch up and there is something of a “goldrush” or “wild west” effect still ongoing. Chip and pin, identity and credit card fraud are also big and overlapping problems according to the report.
There is a double whammy effect in that law enforcement agencies, such as the Office of fair Trading and the Serious Fraud Office, let alone regional police forces, are all having their budgets slashed, which is only likely to result in the problem getting worse. Many would also argue that financial crime is increasing in line with a decline in moral standards where there is a get rich quick or gotta have it culture. The riots and wanton looting in London over the summer were certainly indicative of much of a consumer society gone mad as of a disgruntled population for political reasons.
When we talk about scams and inappropriate tactics which perhaps fall somewhere short of the legal definition of fraud, as regards defective goods, dodgy doorstep selling tactics and such like this again is a multi billion pound problem. Research suggests that to counter this, last year the Government only allocated £34 million on consumer protection, with deterrents being low in terms of fines and punishments for bad practice. It looks like we are fighting a losing battle.
What are your thoughts on these issues ? Please do let us know and relating to any instances you have suffered of fraud or scams, but no names please !