Thousands of people’s lives are being ruined every day in the UK by a hidden scam epidemic, according to a law firm that specialises in fraud recovery.
Richardson Hartley Law says that the country is in the grip of a ‘scamdemic’ and is calling for the Government, banks, tech giants and social media companies to do more to prevent fraud which it says is only going to get worse.
The law firm has set up a new specialist brand and website called NationalFraudHelpline.co.uk which, not only recovers scam victims’ money on a no win, no fee basis, but is developing anti-fraud technology, campaigning for better scam safeguards and raising awareness of the scale of the problem. The website has the latest scam news and advises the public how they can protect themselves from fraud.
Calls for better protection comes after new rules were introduced last week(7.10.24) that mean that UK banks should reimburse fraud victims within five business days if they paid the scammer via authorised push payment (APP), which is when customers pay via their banking app or through logging in online.
Solicitor Martin Richardson, senior partner, at NationalFraudHelpline.co.uk, welcomed the new fraud regulations imposed by the Payment Services Regulator but said he was disappointed that the banks had recently pressured it to reduce the maximum that they had to pay out from £415,000 to £85,000.
Mr Richardson said: ‘There’s a hidden fraud pandemic in the UK that’s being hugely under-estimated. We’re describing it as a “scamdemic” and the impact is devastating. Many victims of fraud are having their lives ruined. We deal with people who have been left homeless, split up with their partners, been plunged into depression and forced to take on extra jobs.
‘Fraud is a multi-billion pound global business. Many victims in this country are falling victim to frauds that are perpetrated by people held in slave camps in South East Asia. where an estimated 200,000 people have been human trafficked and are forced to commit scams.
‘International criminals are harnessing the power of technology to commit increasingly sophisticated scams. With the advent of AI this is only going to get worse, and quickly.
‘We worry that reducing the maximum reimbursement threshold from £415,000 to £85,000 gives the banks less motivation to put in proper fraud prevention measures. There’s also a danger that this means some banks will cap the amount of compensation at £85,000 rather than compensate the full amount.
‘We’re determined, not just to get victims’ money back, but to create proper fraud prevention measures and raise awareness of how big this issue is. Millions of people are scammed in the UK each year.
‘Technology and the internet is in everyone’s lives and it’s been a gift to fraudsters. It’s unlocked the doors for scammers who use every opportunity to steal people’s money.
‘The Government, big tech giants and social media companies all need to do much more. So many of the scams we see come through Facebook, Instagram and Whatsapp as well as emails.’
NationalFraudHelpline.co.uk has joined forces with leading UK Artificial Intelligence company, Time Machine Capital Squared, to create innovative anti-fraud technology solutions. A spokesperson for Time Machine Capital Squared said: ‘We are confident that Machine Learning and AI are vital tools in the fight against fraud. AI will be particularly effective in helping to quickly thwart new frauds as scammers change their tactics and targets.’
The law firm is also campaigning at a national level for better fraud prevention and is sponsoring a report into ‘Banks and APP fraud’ commissioned by the All Party Parliamentary Group for Fair Banking. The report will look at how the new APP fraud measure are working and what more can be done.
Mr Richardson said: ‘It is estimated that in 2024 one in ten people will fall victim to a scam which will total £7.5bn. That is an incredible number. The banks are suggesting people are being defrauded of around £400m a year through APP fraud alone. We believe that the true figure is between £3b to £4b.
‘The issue of fraud needs to be high up on everyone’s agenda
‘Fraud is particularly cruel. For victims of romance fraud, for example, they not only lose huge amounts of money but are simultaneously left heartbroken. The stories we hear each day are heartbreaking.’
