UK Government to Ban Cold Calls Selling Financial Products, Including Crypto

May 3, 2023

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The UK government is set to introduce a blanket ban on all unsolicited calls selling financial products as part of a national crackdown on scams.

Banning Cold Calls

The ban will cover all financial products, including insurance and cryptocurrency schemes. The is expected to be implemented this summer and will extend a current ban that stops cold calls about pension products. The UK Prime Minister, Rishi Sunak, said that the new rules will tackle “cold-hearted” scammers who “ruin lives in seconds“. The blanket ban on cold calls selling financial products aims to prevent fraudsters from infiltrating their way into people’s lives in the first place.

UK government targets fraudsters with new ban on cold calls for crypto –

— World Finance News (@Worldfin_News)

The Fraud Problem in the UK

Fraud makes up over 40% of crime in the UK and costs the government £7 billion ($8.8 billion) annually. The reported value of UK cryptocurrency fraud climbed 32% to £226 million ($283 million) in the year ending in September 2022. To tackle fraud and scams, the UK government is setting up a National Fraud Squad to tackle related crime with 400 new posts. The government’s new fraud strategy also includes introducing a suite of new measures such as launching a new National Fraud Squad led by the National Crime Agency and the City of London Police and investing £30 million in a state-of-the-art reporting center, among other actions.

Too Little, Too Late

Labour and the Liberal Democrats called the plans “too little, too late”. Emily Thornbury, the Labour Party’s shadow attorney general, said the plans ignored “the tens of billions being lost to fraud against businesses and the government”. Alistair Carmichael, home affairs spokesperson for the Liberal Democrats, said the new fraud squad is just a drop in the ocean compared to what’s needed to protect fraud victims. Consumer group Which? welcomed the strategy but criticized the government for not acting sooner. “More action is needed to guarantee that big tech platforms take serious action against fraud,” it added.

The Effects of Fraud

Fraud is the most common crime in the UK, with one in 15 people falling victim. Last summer, 41 million people were targeted by suspicious calls and texts, according to media regulator Ofcom. Fraud now has an online element, and data suggests that nearly 90% of internet users have encountered online scams. According to Action Fraud, some losses can run into the millions, but the average loss to each victim is around £75,000. However, finding an accurate average can prove difficult, as many victims are unaware they have fallen victim to fraud.

UK government targets fraudsters with new ban on cold calls for crypto –

— World Finance News (@Worldfin_News)

Conclusion

The UK government’s new fraud strategy is aimed at preventing fraudsters from infiltrating their way into people’s lives in the first place. The blanket ban on cold calls selling financial products aims to stop fraudsters selling sham insurance products or cryptocurrency schemes. The government has allocated £400 million to economic crime in the last government spending review, including £100 million to tackle fraud. While consumer group Which? welcomed the strategy, it criticized the government for not acting sooner, and Labour and the Liberal Democrats called the plans “too little, too late”.

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