The owner of small business Kent Brushes, who lost £1.6 million in a matter of minutes due to fraud, has criticised the authorities for their inadequate response. An employee at Steve Wright’s company fell victim to a scam that granted criminals access to the business’s bank account. Wright expressed dismay, stating that both his bank and Action Fraud had managed the situation terribly. This criticism emerges as senior law enforcement officials advocate for extended jail terms for those found guilty of fraud.
The Lack of Severity in Fraud Sentencing
Amidst growing concerns about fraud, Adrian Searle, the director of the National Economic Crime Centre, is advocating for harsher sentences for fraudsters. Presently, the maximum jail term for a fraud crime is ten years, but the average is closer to two years. Searle emphasises that emotional damage should also be factored into sentencing.
According to the Home Office, there were 1.25 million reported cases of fraud up to March 2023. A paltry 4% of these cases saw any investigation, and just over 4,000 made it to court. These statistics expose a glaring problem with how seriously cases of fraud are taken here in the UK and underlines the need for people to take preventive action before it is too late.
The Emotional and Financial Toll of Falling Victim to Fraud
Kent Brushes, a business with historical roots going back to 1777, was robbed in broad digital daylight. Wright was devastated when he discovered the missing funds. The money was stolen via a sophisticated authorised push payment (APP) scam that targeted the company’s financial controller.
The scam involved the financial controller being duped into believing that the company funds were in immediate danger. The fraudsters manipulated this fear to gain access to the company’s bank accounts. Stealing over £1.6 million in just 20 minutes.
Inadequate Institutional Support
In a quest for assistance, Wright reached out to Hertfordshire Police, who directed him to Action Fraud. What happened next exposes the significant gap in protective measures offered to businesses compared to individual consumers. Unlike individual victims of fraud, who can seek help from the Financial Ombudsman Service or use the Contingent Reimbursement Model code, businesses are left to fend for themselves.
The bank had yet to return the stolen funds three and a half months after the theft. The lack of response from Action Fraud compounded Wright’s disappointment. He said their handling of the matter was appalling, and this raises alarms about how victims in more vulnerable positions are treated.
The Failings of the Banking Sector
Wright asserts that Kent Brushes is still financially robust despite the massive setback. However, the theft necessitated a reevaluation of the company’s strategies, delaying the launch of new products to maintain cash flow stability. All staff were paid on time, demonstrating the firm’s resilience.
Action Fraud later admitted to mishandling the case details and apologised to Wright. They claimed to have implemented measures to prevent future failures. Meanwhile, the National Economic Crime Centre pledges to make significant changes in managing fraud cases, including transformations to UK’s national fraud reporting service.
The Legal Landscape for Fraud Sentencing
The Ministry of Justice assures that the average sentencing lengths for fraud offences have doubled since 2010. But is that enough? While increased sentencing can act as a deterrent, the focus should also be on fraud prevention and raising fraud awareness. This would significantly impact the number of fraud cases.
For several years, we’ve witnessed instances where vast sums, often reaching into the hundreds of thousands or even millions of pounds, are stolen. Yet, when the fraudsters are apprehended, they receive astonishingly lenient sentences. The glaring reality is that the UK fails to take fraud as seriously as it should, evident in the alarmingly low number of cases that undergo investigation.
A side of things that often goes overlooked is the emotional toll that falling victim to fraud can have. While financial losses are significant, they aren’t the whole story. Even if victims recover their stolen funds through their banks, the emotional recovery can be a lengthy and sometimes impossible process. Greater attention must be given to this emotional impact, especially when considering sentencing for fraud convictions.
