The justice system has been left ill-equipped to deal with a growing “fraud epidemic” as most resources are allocated to fighting “traditional” crime, MPs have said.
Just 2 per cent of police funding is dedicated to combating fraud despite it making up 40 per cent of reported crimes in England and Wales, the House of Commons Justice Committee found.
An estimated 4.6 million offences of fraud are carried out each year at a cost to society of £4.7 billion, according to the Office for National Statistics (ONS). More than half (53 per cent) of fraud is believed to be carried out over the internet.
But, in the year ending September 2021, just 7,609 fraudsters were prosecuted by the Crown Prosecution Service (CPS).
Amid the cost of living crisis, 73 per cent of people said they have been contacted by scammers seeking to capitalise on their financial fears by pretending to be from legitimate companies or government bodies, a recent survey shows.
Scammers often pretend to offer money to the recipients of their emails, text messages, or calls – or purport to be acting on behalf of organisations such as HMRC to get hold of their victims’ data such as financial information and passwords.
The government should give more resources to preventing and investigating fraud, training officers to identify fraud, prosecuting perpetrators, and supporting victims, the cross-party committee said.
The MPs also said that fraud victims should not have to wait until 2024 for a reporting system to replace Action Fraud, a body which they said has “proven itself unfit for purpose”.
Details of fraud are also not collected and published in sufficient detail to enable police to be held accountable for their performance, they added.
Sentencing guidelines should take into account not just the level of financial loss resulting from a crime but also the emotional and psychological harm these crimes cause, the committee recommended.
Committee chair, Tory MP Sir Bob Neill, said: “A week ago, it was announced that it is now a key priority for police to attend every burglary reported to them.
“It is right that victims of such invasive and traumatic crime should know that they will be supported, but we should not underestimate the impact that offences of fraud also have upon victims.
“Fraud currently accounts for 40 per cent of crime and the figure is growing. People are losing their life savings and suffering lasting emotional and psychological harm. But the level of concern from law enforcement falls short of what is required.
“The decision has already been made to replace Action Fraud, and the government will need to make sure its successor can meet the demands placed on it, but the wider criminal justice system must also renew its focus on this crime.
“Fraud prevention, investigation and prosecution too often has seemed like an afterthought, last in the queue for resources, monitoring and even court time.
“We need the criminal justice system to have the resources and focus to be able to adapt to new technologies and emerging trends. The current sense of inertia cannot continue, we need meaningful action now.”
