UK government launches online fraud squad to target overseas scam compounds

The UK government is launching an online fraud squad to target overseas scam compounds.

Launching in April, the Online Crime Centre will see the government, police, intelligence agencies, banks, mobile networks and major tech firms work together and share data to take action against fraud.

The squad, which is backed by over £30m in funding, is part of an expanded fraud strategy that will be funded by £250m over the next three years. The government plans to shut down the tools criminals exploit, shore up the UK’s defences, and boost support for victims.

Artificial intelligence will also be deployed to spot emerging fraud patterns, stop suspicious bank transfers faster and to use scam-baiting chatbots to trick fraudsters and gather intelligence, before using it to bring them to justice.

Agreements with Nigeria and Vietnam to share intelligence to bear down on fraud have already resulted in multiple arrests and scam compounds taken down in the past year, the government said, adding it will “relentlessly pursue new opportunities to take out organised crime and partner with countries where fraud targeting the UK is on the rise”.

Fraud Minister Lord Hanson said: “Fraudsters are exploiting new technology, industrialising their operations and targeting the British public at scale.

“Our new fraud strategy sets out how we will use every tool at our disposal to disrupt and dismantle criminal operations, bring fraudsters to justice and strengthen protection and support for victims.”

Steve Smart, executive director lead for fighting financial crime at the Financial Conduct Authority, added: “Fighting financial crime is essential for protecting consumers and firms, and preventing criminals undermining confidence in the financial system.

“We support the government’s new fraud strategy which sets out a blueprint for partners working together, at home and abroad, to crack down on the problem.

“Its success will depend on everyone – government, regulators, law enforcement and industry, including tech firms – playing their part.”