A debate in the House of Lords, titled “Telecommunications fraud: reimbursement of the victims” was held on 14 May. Led by Lord Vaux of Harrowden, the former chair of the House of Lord’s Finance Committee, the debate centred on the question of whether technology and telecoms companies should bear direct financial responsibility for fraud prevention and victim reimbursement, in the same way that banks do.
Lord Vaux strongly highlighted the current imbalance, pointing out that while banks are liable for fraud, tech and telecom companies, which are often the origin of most scams, are not. He argued that only real financial accountability will drive genuine action from these companies. There was clear support in the chamber for making tech and telecom firms financially liable, with several speakers noting that voluntary measures have not worked and most scams now originate from these sectors.
In response, Fraud Minister Lord Hanson acknowledged the seriousness of these concerns. He referenced the Online Safety Act, which already requires companies to remove fraudulent content or face significant fines, and pointed towards the upcoming fraud strategy, which promises a renewed focus on data sharing and international collaboration. While Lord Hanson didn’t commit to introducing bank-style liability for tech and telecoms firms immediately, he stressed that “all options” remain open as the government develops its strategy.
Much of the discussion centred on improving data sharing between platforms, telecoms and law enforcement, with particular attention on Ofcom’s expanded role in enforcing new codes of practice under the Online Safety Act, especially around fraudulent advertising. The Minister’s comments suggest that further action will likely align with the O3C initiative, which CCUK already supports.
Lord Browne spoke about his experience on the Special Select Committee on Fraud, recalling a conversation with a mobile provider who claimed to take fraud seriously, which was met with laughter in the chamber. He criticised the lack of fraud provisions in mobile contract terms and conditions and argued this should be addressed, though his comments focused on mobile rather than VoIP. Data sharing was a key theme in his remarks. Lord Vaizey highlighted the scale of scams through nuisance calls and texts and pointed out the lack of clear oversight between the ICO and Ofcom. He called for both regulators to report on their efforts to tackle nuisance calls and texts and noted the ongoing challenge of balancing data sharing with data protection.