“Misunderstanding the role of Action Fraud appears to be rife” – inspectors
Fraud appears to be flourishing. Sophisticated criminals know that their chances of conviction are slim, and they are helped by failings in the police service – failings to which Her Majesty’s Inspectorate of Constabulary (HMIC) has tried to draw attention.
The investment minefield that is fractional ‘ownership’ of hotel rooms, student flats and other accommodation came to West Wales News Review’s attention during investigations into the fate of close on £20 million paid to Kayboo Ltd for leases at The Corran Resort and Spa, Laugharne, Carmarthenshire.
No authority seemed at all interested in investigating the fate of monies, including pension savings, which investors entrusted to Kayboo, a company now in liquidation. Investors looked to Action Fraud, a branch of the City of London Police, but Action Fraud opted for total inaction.
HMIC has sharply criticised Action Fraud. In ‘Real lives, real crimes: A study of digital crime and policing’, published in December 2015, the inspectors write (chapter 9, paragraphs 9.16-9.25):
- “During our study, we found very few police officers and staff who understood either their own roles and responsibilities or those of their force in relation to the investigation of fraud. In particular there was a lack of knowledge, at all ranks, regarding the functions of Action Fraud and the National Fraud Intelligence Bureau.
- “Consequently, the advice and support which the police should provide to the victims of such crime are poor. For example, on two occasions, in two separate forces, we were told by neighbourhood policing officers that they didn’t understand the process and they would advise victims who reported frauds to call 101.
- “Misunderstanding the role of Action Fraud appears to be rife.
- “We conducted a group discussion in one force with call handlers and enquiry desk staff who commented that they would:
- “refer the victim direct to Action Fraud”;
- “deploy a police officer to take a crime report from the victim”;
- “transfer the victim to the criminal investigation department”;
- “make an appointment for a police community support officer to speak to the victim”; and
- “transfer the victim to the force economic crime unit”.
- “This clear lack of understanding among many who come into contact with victims about the right procedure to adopt was consistent across most police forces which helped us in our study, both at tactical and strategic levels.
- “Yet, all the forces which we visited had a nominated officer, at either detective sergeant or detective inspector level, to receive and manage those cases referred to the force from the National Fraud Intelligence Bureau. He or she was responsible for the case management of the investigations and was fully aware of the way in which fraud cases should be reported to Action Fraud and of the response that could be expected from the bureau. However, it appeared that these officers did not carry sufficient weight to ensure that the remainder of police officers and staff in their forces were equally well informed.
- “When we spoke to chief officers about National Fraud Intelligence Bureau referrals, they invariably directed us to those specialist middle-ranking officers. In all but one force, there was an absence of strategic leadership and direction, which resulted in a lack of performance management and priority setting in relation to the reporting and investigation of fraud.
- “The numbers of crimes reported to Action Fraud annually have more than doubled since 2013. Despite this, fewer than 50 percent of forces regularly assess the impact of fraud in their strategic risk assessments. (See: National Fraud Capability Survey”, national police coordinator for economic crime, March 2015, page 10.)
- “We are aware that the National Police Co-ordinator for Economic Crime wrote to every chief constable in March 2015 highlighting best practice. In his letter, he stressed that the entire process needed to be “owned by an accountable chief officer”. He asked that every force notify him of its nominated chief officer.
- “By August 2015, he had received only 14 responses out of a possible 43.”
Reporting fraud to Action Fraud is difficult, and pointless if no one investigates. And how can you properly report complex fraud via an online form or a call centre?
One-stop fraud reporting may have appeared a brilliant labour-saving idea, but it doesn’t work.
Who benefits? The fraudsters!