Tag: new powers

New powers for banks to combat fraudsters

Banks to be given new powers to protect consumers against scams

  • New rules extend maximum delay for suspicious payments by 72 hours
  • Gives banks more time to investigate and break the spell of fraudsters

Banks will be given new powers to delay and investigate payments that are suspected of being fraudulent, helping to protect consumers against scammers.  

New laws proposed by the Government today will extend the time that payments can be delayed by 72 hours where there are reasonable grounds to suspect a payment is fraudulent and more time is needed for the bank to investigate.  

This will give banks more time to break the spell woven by fraudsters over their victims and tackle the estimated £460 million lost to fraud last year alone.

Economic Secretary to the Treasury, Tulip Siddiq said: “Hundreds of millions of pounds are lost to scammers each year, targeting vulnerable communities and ruining the lives of ordinary people.  

“We need to protect these people better, which is why we are giving banks more time to investigate suspicious payments and break the criminal spell that scammers weave.”

Minister of State with Responsibility for Fraud, Lord Sir David Hanson said: “Fraud is a crime that can devastate lives, and anyone can be affected.  

“That’s why measures like this are so crucial to provide banks the investigative powers they need to better protect customers from this appalling crime.”

Fraud accounts for over a third of all crime perpetrated in England and Wales, making it the most prevalent form of crime commitment in the country. This has been driven by a growing number of purchase scams and the emergence of so-called ‘romance scams’, where victims target vulnerable people and trick them into transferring large amounts of money by pretending to be interested in a romantic relationship.  

The new rules will help protect people against these types of scams by allowing banks up to an additional 72 hours to investigate suspicious payments. Currently banks must either process or refuse a payment by the end of the next business day.

Which? Director of Policy and Advocacy, Rocio Concha said: “This is a positive step in the fight against fraud. While it should not affect the vast majority of everyday payments, it’s important that banks can delay a bank transfer and take action if they think a customer is being targeted by a scam. 

“These measures should be used in a careful and targeted way. Financial firms of all sizes should also ensure they share intelligence and work with the police and other authorities to shut down accounts used for fraud and pursue the criminals behind them.”

UK Finance Managing Director of Economic Crime, Ben Donaldson said: “UK Finance has long called for firms to be allowed to delay payments in high-risk cases where fraud is suspected, and we are delighted to see proposed new laws supporting this.  

“This could allow payment service providers time to get in touch with customers and give them the advice and support they need to avoid being coerced by the criminals who want to steal their money.

“This could potentially limit the psychological harms that these awful crimes can cause and stop money getting into the hands of criminals.”

Banks who have reasonable grounds to suspect a payment is fraudulent will need to inform customers when a payment is being delayed. They will also need to explain what the customer needs to do in order to unblock the payment.  

The need for evidence to trigger a delay will help protect people and businesses from unnecessary payment delays. Banks will also be required to compensate customers for any interest or late payment fees they incur as a result of delays.

New powers to enforce safe use of fireworks come into force next week

Criminal offence to supply fireworks and pyrotechnics to under 18s

New powers to enforce the safe use of fireworks are to come into force. Legislation making it a criminal offence for anyone to supply fireworks or other pyrotechnic articles to a child or person under 18 comes into effect on 10 October.

From the same date, attacks on emergency workers using fireworks or pyrotechnics will also become aggravating factors that can be taken into account when courts sentence offenders. The measures are set out in the Fireworks and Pyrotechnic Articles (Scotland) Act 2022 passed by the Scottish Parliament on 29 June.

The key powers are being brought into force in advance of Bonfire Night and build on steps taken last year restricting the times fireworks can be used, when they can be bought, and the quantity.

Work is progressing to enact other powers set out in the Act, including the introduction of a fireworks licensing system, with mandatory safety training, for people wishing to purchase and use fireworks, and introducing powers for local authorities to designate firework control zones.

Community Safety Minister Ash Regan said: “These important new powers have been delivered at pace and make it a criminal offence for anyone to supply fireworks or other pyrotechnic articles to a child or person under age 18.

“Fireworks in the wrong hands can cause serious, life-changing injuries or even prove lethal. Preventing their supply – in any way – to under 18s is a wholly welcome step which will bring greater public safety across Scotland. 

“It’s also extremely important swift work has progressed which will see hard-working and brave 999 crews – who work tirelessly to keep us all safe – better protected.

“Any attack on fire, ambulance and police crews is utterly despicable so ensuring courts are required to take into consideration the use fireworks or pyrotechnics as a possible aggravating factor in any attack on 999 crews is a real deterrent to such vile behaviour.

“Work is now progressing to see other provisions set out in the ground-breaking legislation brought into force. These are essential steps which demonstrate our absolute commitment to improving the safety of communities across Scotland.”

Chief Inspector Nicola Robison from Police Scotland’s Partnerships, Preventions and Community Wellbeing Division, said: “Fireworks, when not used lawfully, present a significant risk to the public and so preventing such items from being purchased by, or for, anyone under the age of 18, is vitally important for keeping communities safe.

“Buying fireworks for underage youths can result in a £5,000 fine, six-months imprisonment, or both and our message is clear. Do not risk it. Help us prevent disorder, damage and violence over the Bonfire Night period.

“The new aggravator for attacks on emergency service workers is also a welcome legislative change and should give all frontline first responders additional reassurance that their safety and wellbeing is paramount as they go about their duties.”

The new under-18 proxy purchase and supply and emergency worker attack aggravator offences come into effect on 10 October 2022.