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Evening Standard
Evening Standard
Business
Chris Blackhurst

Online Safety Bill: Seize this golden opportunity to crack down on online fraud

It seems to be taking forever, but the Online Safety Bill is, I am assured, edging closer to becoming statute.

The problem is that the proposed legislation is far from perfect. Indeed, it is perplexing that as its wended its way, the bill’s drafters did not see what others so clearly see.

You would suppose, for instance, that high on their minds would be the avoidance of fraud. Online scamming is rampant and its impact is enormous.

It’s not just the victims who suffer directly but genuine businesses that find themselves subjected to imitators and fakes.

One change to the law that would go a substantial way to alleviating this problem is to require social media platforms to enable users to see whether accounts are verified.

This is something the campaigning body Clean Up The Internet or CUTI has been pushing hard for — declaration of interest, I support CUTI and sit on its advisory board.

The bill faces a backbench rebellion in the Lords exactly on this issue. Peers are supporting an amendment to the proposed legislation that would force the networks to allow subscribers to see if someone posting is who they claim to be.

The modification has been jointly tabled by Baroness Nicky Morgan, formerly the Conservative minister responsible for the Online Safety Bill, and Labour and Lib-Dem front-bench spokesmen, Lord Stevenson and Lord Clement-Jones.

They are warning the Government risks missing a huge chance to reduce online fraud if their suggestion is not accepted. Research commissioned by CUTI finds just under four-fifths, or 78%, of UK social media users say it would be helpful to be able to see which social media accounts have been verified so they can avoid being defrauded.

Almost as many UK social media users also say being able to see which accounts have been verified would assist with identifying bullies or trolls (77%); spotting false or misleading news stories (72%); and buying products or services (68%).

At present, the bill includes a requirement for platforms to offer users a verification option, under the “user verification duty”. However, there is no requirement that verification be visible to other users, significantly blunting the power of the measure.

These findings reinforce an earlier study by CUTI in April, which found that the ability to create anonymous and deceptive social media accounts is a major enabler of online fraud, and that users being able to check other users’ verification status could become a key fraud prevention measure.

It also echoes analysis by Ofcom, published this March that a “warning from the platform that content or messages come from an unverified source” is the single most popular measure the platforms could introduce to help users avoid getting drawn into scams.

Campaigners and parliamentarians are warning the Government that the UK can’t afford to miss this moment to make life harder for social media fraudsters.

Fraud is a rising problem in the UK. The government’s Crime Survey for England and Wales found fraud is the most experienced crime in England and Wales, with 3.8 million offences, accounting for 41% of all crimes.

The police body responsible for fraud, Action Fraud, reports that more than 80% of fraud is cyber-enabled, with Ofcom estimating that 23% of fraud takes place on social media. As Siobhan Baillie, Conservative MP for Stroud and campaigner against anonymous online abuse, says: “Online fraud, scams and hate ruin lives. It is not rocket science to understand why verification options are wanted more widely. Internet users want more choice and control over what they see and who they want to interact with. This is about trust and empowering people.

“I continue to urge the Government to alter the proposed legislation to make it more robust. Clean Up The Internet has yet again shone a light on an issue that is troubling the public and provided the necessary research to help policy makers do the right thing.”

CUTI founder Stephen Kinsella agrees: “Online fraud is a huge problem, and almost every scam on social media relies on the use of fake accounts. User verification could therefore be a huge help with preventing fraud — but only if it’s obvious to everyone which accounts are verified and which aren’t.

“The public wants to be able to see this information. We hope enough members of the House of Lords will vote to fix this gap in the Online Safety Bill.”

It does seem crazy that such an obviously beneficial measure depends on the frequently maligned upper chamber.

Thank goodness it is there, though.

Without it, we would be left with nothing except the sheer incompetence of this Government.

What there is instead, is a golden opportunity to make a genuine difference.

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