Law to be updated in anti-fraud offensive

Home Office consults over 'increasingly sophisticated' high-tech crime

Fraud laws are set for a major overhaul to bring them in line with the capabilities of modern technology.

In a move described as "long overdue" by the channel, the government is proposing to "overhaul the law to simplify it, cast its net wider and make it easier to secure just convictions", according to Home Office minister Baroness Scotland.

She said fraud costs the UK economy £14bn a year, but that the current law does not encompass the range of crimes fraudsters commit.

"Modern criminals are increasingly sophisticated and use technology to commit fraud," said Baroness Scotland. "If law enforcement agencies are to tackle the growing threat we all face from fraud, our existing law requires modernisation."

The Home Office has published a consultation paper and is asking businesses for feedback.

IT resellers are frequent victims of crimes such as card-not-present and internet fraud. VARs claim the police lack resources to fight this type of crime. Although the industry has learned to counter threats through its own vigilance, attacks are still on the increase.

Glenn Morrison, managing director of reseller Upgrade Options, welcomed the prospect of reform.

"This cannot happen soon enough. I hope they match rhetoric with resources," he said. "We want to be included in the process and will send our views."

After becoming a victim of fraud, one reseller set up the Early Warning scheme in 2002. This provides a database of known criminals which resellers can access.

"This is the industry coming together to fight back and compensate for the authorities' limp attitudes," said Morrison.

Andrew Goodwill, managing director of Early Warning, said changes to fraud laws are long overdue. "IT suppliers will always have a problem with fraud because they sell goods that people want and can't always afford," he said.

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To see the Home Office proposals please click here.