Fraud revamp could be phishing nightmare

The world of phishers, credit card criminals and identity thieves is set for a shake-up, with the government's planned revamp of fraud laws designed to make it easier to catch high-tech scammers.

The Home Office has announced it plans to introduce a new Fraud Bill in the future with a broader scope than its predecessor - including introducing a general crime of fraud. The change is intended to ensure that fraudsters can't escape being brought to justice because their crimes don't fit the narrow definition of what fraud is.

The Home Office also said that the new Bill will enable the government to better keep up to speed with the changing array of technology at the fraudsters' disposal.

Speaking at the Association of Certified Fraud Examiners conference, Home Office minister Baroness Scotland said: "The current statutory offences do not cover the range of frauds which can be committed or keep pace with modern technology. The government is determined to equip police and prosecutors with a modern legislative framework to face the challenge of combating fraud in the 21st century."

MP for Sheffield Hallam and Lib Dem spokesman for IT Richard Allan said that the Bill could be a boon to the anti-phishing campaign.

"One of the most important elements is the single offence for fraud. It means the moment someone sends out phishing emails, they are setting out to commit fraud. [Now] you can't prosecute someone for sending emails, you have to wait until they've taken the money out [of victims' bank accounts]", he said.

It could be some time before the Bill is likely to make its appearance in the government's legislative schedules - around mid-2006 - Allen said, adding that extradition treaties and international agreements on fraud suspects abroad will need to be in place for the Bill to be truly effective.

In the meantime, it seems identity theft is hampering ecommerce and particularly take-up of online banking.

Research from identity management company Entrust has found that 80 per cent of consumers are worried about someone stealing their identity online.

The banking and financial sector are suffering most from the phishing fear - 72 per cent of those who don't bank online would consider it if the security as stepped up and 22 per cent of people said they'd switch their online bank if it meant better security.

The yet-to-be-enacted Act will also likely include the provision to make possessing the equipment to commit fraud an offence - bad news for those with credit card making facilities, good news for those with credit cards.

The new Fraud Bill will be put before parliament when time can be scheduled, according to the Home Office.