Fraud Update Report A response to the August 2013 themed public forum on the topic of fraud

Transcription

1 Fraud Update Report A response to the August 2013 themed public forum on the topic of fraud

2 Page 2 of 6 FRAUD UPDATE Introduction In August 2013, I held my first themed public forum focusing on Victim Experiences of Reporting, Recording and Investigating Fraud. I was pleased to be joined by senior representatives from Action Fraud, the national reporting agency for fraud; the National Fraud Intelligence Bureau, which has a key role in analysing reports of fraud to identify emerging and evolving threats; and, Greater Manchester Police, who gave an account of local efforts to prevent and detect fraud. The positive work described was contrasted with the experiences of fraud victims who have contacted me personally. With fellow panellists, Graham Brady MP and Jim Battle, Deputy Police and Crime Commissioner, I asked questions about communication with victims and the public, information used to guide decisionmaking and prioritise investigative efforts, the changing shape of fraud and future plans to improve service provision. This short report provides an update in relation to a number of areas identified for further attention, some which came from the discussion during the meeting and others from prior examination and analysis of material provided by the different agencies. Communication with the public (a) The role and services of Action Fraud Action Fraud actively seek media coverage through newspapers, television and radio and often provide an expert interview through these channels to raise awareness of types of fraud and the services provided. There are a variety of resources available to the public through the Action Fraud website, including posters and leaflets. These can be downloaded here: These materials are made widely available to police forces for onward communication to the public. Action Fraud also have a range of materials designed with more vulnerable people in mind: and is working with the National Crime Agency, and alongside the National Union of Students, on campaign activity to target students. Action Fraud developed an online Christmas shopping safety campaign with Get Safe Online, which was launched at the beginning of December (b) Advice and guidance A cross government e-confidence project, led by the Home Office, launched in January 2014, involving public and private sector partners. More information about the campaign can be found here: The Cyber Street campaign aims to educate small businesses and consumers on how to avoid falling victim to sophisticated cyber criminals. The campaign targets

3 Page 3 of 6 specific small and medium-sized businesses and groups of consumers, which research shows are either losing the highest sums to online crime or are particularly vulnerable. Action Fraud is also planning to launch an interactive map of fraud reports on their website in the New Year and hope that making these figures available online will aid transparency and raise awareness of threats, while also providing prevention advice. Action Fraud is also looking to update and revamp their fraud A to Z, based on recent customer insight work, and is active on their website, Facebook and Twitter to raise awareness of the advice and support available. The National Fraud Intelligence Bureau have committed to play their part in pulling together and translating their evidence base into key, timely messages to the public to reduce the level of fraud affecting them. In some circumstances, the Bureau will be the best brand or vehicle to inform the public about a threat but, in many cases, they will be most effective working in partnership with another organisation which has an established trusted brand, with the people at risk. This is evidenced through some of the successful campaigns that the Bureau has run in the past, for example, to combat Hajj fraud. In this case, the British Council of Hajji s was crucial to reaching the relevant communities. Over the last 18 months, Greater Manchester Police has worked to improve its strategy in relation to how the organisation communicates with victims and potential victims about how people can protect themselves from fraud, along with how and where assistance can be sought. This includes a comprehensive change to the information displayed on the GMP website which now includes links to Action Fraud, information on fraud prevention in the form of The Little Book of Big Scams and prevention advice linked to specific fraud types which are prevalent in the Greater Manchester area. The information on the GMP website is further complemented by other communications tactics and information developed in conjunction with GMP s Corporate Communications Branch. The information sent out is tailored for key communities and sectors of society vulnerable to certain types of crime. In common with the example cited by the National Fraud Intelligence Bureau, GMP has done work to highlight the problem of Hajj fraud which targets Muslims travelling to Mecca for their pilgrimage. This fraud focuses on bogus travel arrangements where individuals pay large sums of money on the proviso that appropriate arrangements will be put in place but which later transpire never to have existed. Improving communication, support and services for victims Since the end of September 2013, all victims who have had their report of fraud disseminated from the National Fraud Intelligence Bureau to a local police force now receive a letter from Action Fraud to let them know that this has happened. Previously it was the responsibility of the receiving police force to contact the victim. The National Fraud Intelligence Bureau state that they anticipate building upon this work to give out more information, once the impact of the changes made have been tested and evaluated.

4 Page 4 of 6 Action Fraud are looking to further improve their work in this area by responding to all victims who have made a report of fraud to the agency to let them know the outcome of their report after 28 days. They anticipate having this enhancement in place by early 2014 and, with around 20,000 crime reports processed each month, this is sizeable task. All victims who report their crime to Action Fraud are made aware of the option to have their contact details forwarded on to Victim Support. It is then an independent decision from Victim Support as to how this contact is handled. Action Fraud work closely with Victim Support on training requirements focused on offering support to fraud victims. This involves a detailed e-learning package. The Director of the National Fraud Intelligence Bureau highlights that the care of victims is uppermost in his thoughts. He responds personally to complaint letters from victims and has been well aware of the consistent theme - frustration at a lack of information about the progress, or not, with their case. In this regard, he points out that, where Metropolitan Police Service undertake secondary screening of the crimes allocated to them and make a decision not to investigate further, they do not update the victim of that decision. This unfortunately has represented a large percentage of the offender-based disseminations sent to that force. In May 2013, the Bureau s Director set in place a programme of improvements to the service, setting victims at the heart of delivery. This is with the support of the Minister for Crime and Security to whom the Bureau is ultimately accountable and reports on a quarterly basis. GMP outlined plans currently being developed by Cheshire Constabulary and the Fraud Advisory Panel to create a regional/national referral process for civil redress whereby victims of fraud can be steered towards a more appropriate resource. This could be a legal practice that can undertake insolvency work or, alternatively, insolvency practitioners who can instigate civil processes and better assist with the recovery of monies. GMP is in regular contact with Cheshire Constabulary and the Fraud Advisory Panel exploring progress and providing advice around the requirements of fraud victims dealt with by GMP officers. In addition to this, it is GMP s intention to create personalised letters for victims of fraud to provide specific signposts to appropriate agencies such as Trading Standards or the government department for Business Innovation and Skills. This personalised service will clearly have resource implications for GMP and will mean creating a Customer Service Desk within the force s Economic Crime Unit, whilst at the same time endeavouring to ensure that established investigative capacity is not adversely affected. It is envisaged that the Customer Service Desk function could also deliver other important services such as disruption activity against those suspects who will not be investigated, bespoke media campaigns, development of target hardening strategies together with other work in support of victims where a referral is the more appropriate course of action. Investigating and disrupting fraud

5 Page 5 of 6 The Director of the National Fraud Intelligence Bureau emphasises that the operational independence of each police force is an established principle. This means that each force must deploy its resources as it sees fit to serve the public. He recognises that police forces face challenges in this regard and states that in reality this means that not every fraud case can be investigated. The Bureau maintains that the value of national reporting and its own role is in enabling forces to make evidence-based decisions about how to tackle the fraud threat. Decisions about when to pass a crime network to a force to investigate rests with the Director and there are established routes of escalation for victims in such scenarios. The decision not to investigate at a force level has its own clear escalation route. A key element of the Bureau s work focuses on the disruption of fraudulent activity and, since my public forum on fraud in August 2013, they have continued to increase the disruptions activity conducted. In September 2013, the Bureau s work in this area requested suspension of: some 2,319 bank accounts which featured in 3,954 reports of fraud; 88 websites which featured in 1,261 reports; and, 130 telephone numbers which featured in 113 reports. At the end of October 2013, the Bureau industrialised the telephone suspension facility, working with telecoms industry partners in order to close over 9,000 lines. The Bureau estimate the value of this work, in terms of the prevention of future fraud, runs into tens of millions of pounds. GMP is currently developing plans to present appropriate scenarios, based on real examples of fraud cases, where decisions have been taken to refer a complaint to a relevant agency or disrupt criminal activity, rather than carrying out an investigation, applying the acceptance criteria based upon Home Office guidelines. Once developed it is intended that these scenarios will form part of an interactive presentation where audiences comprising of Independent Advisory Group members, members of the public and individuals representing the private sector will be given the circumstances surrounding different cases. Feedback will then be sought on which route is seen as the most appropriate to take. These forums will be facilitated by experts in the field of fraud, whose role will be to ensure the audience is aware of key facts around available resources, legal issues and practical considerations around the factors present which influence the likelihood the crime could be solved. With regard to decisions around investigation of fraud by GMP, the criteria currently worked to place a high degree of emphasis on ensuring vulnerable victims receive a premium service in terms of the investigation and importantly, victim contact and support. Where appropriate, the services of other departments and agencies are sought, such as GMP s Public Protection Division, Age Concern and a whole host of other services which can offer support to those people representing the most vulnerable in society. Many of the media releases and publications generated by GMP are targeted at specific demographics which have traditionally represented the most vulnerable groups within local communities. Despite this emphasis, GMP recognises that further work needs to be done to train front line staff with regards to the most appropriate response in relation to primary investigations and support required by

6 Page 6 of 6 vulnerable individuals. This is an area which is currently being reviewed. In terms of those fraud cases which may be classed as a higher priority for investigation, the current Home Office criteria make reference to public interest and investigations that may cause a disproportionate level of concern amongst the public such as public officials abusing positions of trust. At present, several such corruption investigations are ongoing. The issue surrounding the value of fraud, whilst playing a part in the final decision-making model, is only one of a number of factors and not necessarily the key point in making a decision about whether or not to investigate. In some cases, despite the sums of money involved it is not always appropriate to undertake an investigation. Referral to another agency, civil redress and/or disruption activity is the more appropriate course of action.