My Lords, I had the great privilege of serving as a member of this House’s Fraud Act 2006 and Digital Fraud Committee under the excellent chairing of the noble Baroness, Lady Morgan. She has already told us of the ghastly effects that fraud has on individuals and indeed its adverse effects on businesses. We heard really dramatic statistics, such as when Action Fraud told us that 80% of fraud is cyber enabled.
Many of us here will have been victims of fraud—I have been a victim—or know people who have been victims of fraud. I was therefore very pleased when the Government introduced the fraudulent advertising provisions into the Bill, which will go some way to reducing the prevalence of online fraud. It seems to me that it requires special attention, which is what these amendments should do.
We heard in our inquiry about the problems that category 1 companies had in taking down fraudulent advertisements quickly. Philip Milton, the public policy manager at Meta, told us that it takes between 24 and 48 hours to review possibly harmful content after it has been flagged to the company. He recognised that, due to the deceptive nature of fraudulent advertising, Meta’s systems do not always recognise that advertising is fraudulent and, therefore, take-down rates would be variable. That is one of the most sophisticated tech platforms—if it has difficulties, just imagine the difficulty that other companies have in both recognising and taking down fraudulent advertising.
Again and again, the Bill recognises the difficulties that platforms have in systematising the protections provided in the Bill. Fraud has an ever-changing nature and is massively increasing—particularly so for fraudulent advertising. It is absolutely essential that the highest possible levels of transparency are placed upon the tech companies to report their response to fraudulent advertising. Both Ofcom and users need to be assured that not only do the companies have the most effective reporting systems but, just as importantly, they have the most effective transparency to check how well they are performing.
To do this, the obligations on platforms must go beyond the transparency reporting requirements in the Bill. These amendments would ensure that they include obligations to provide information on incidence of fraud advertising, in line with other types of priority illegal content. These increased obligations are part of checking the effectiveness of the Bill when it comes to being implemented.
The noble Baroness, Lady Stowell, told us on the fifth day of Committee, when taking about the risk-assessment amendments she had tabled:
“They are about ensuring transparency to give all users confidence”.—[Official Report, 9/5/23; col. 1755.]
Across the Bill, noble Lords have repeatedly stated that there needs to be a range of ways to judge how effectively the protections provided are working. I suggest to noble Lords that these amendments are important attempts to help make the Bill more accountable and provide the data to future-proof the harms it is trying to deal with. As we said in the committee report:
“Without sufficient futureproofing, technology will most likely continue to create new opportunities for fraudsters to target victims”.
I ask the Minister to at least look at some of these amendments favourably.