The Police and Crime Committee convened to discuss the Metropolitan Police Service's efforts in combating online fraud in London. Key discussions focused on emerging fraud typologies, the impact of AI, and the challenges faced in reporting and recording these crimes. The committee also explored the effectiveness of current legislation and the collaboration between law enforcement agencies and financial institutions.

Protecting Londoners from Online Fraud

The meeting heard that online fraud is a significant and growing problem in London, with approximately 40% of national fraud and cybercrime reports originating from the capital. While reporting systems like Report Fraud have been introduced to centralise victim reports, a substantial number of victims, estimated to be around two-thirds, do not report these crimes. This under-reporting is attributed to various factors, including shame, embarrassment, fear of retribution, and a lack of understanding about what constitutes a crime.

Emerging Fraud Typologies and the Impact of AI

A major concern raised was the increasing sophistication of online fraud, particularly the use of Artificial Intelligence (AI) in scams. While AI is not yet running end-to-end fraud models, it is being used to optimise and enhance various stages of the fraud process, making scams more scalable and convincing. Examples included AI-generated voice impersonations and deepfake videos, which can be used to bypass victims' suspicions.

Will Lyne, Head of Economic and Cybercrime for the Metropolitan Police Service (MPS), highlighted the arms race between law enforcement and fraudsters, who are increasingly using technology to obfuscate their identities and move money rapidly. Ruth Halkon, Research Manager for the Police Foundation, identified six priority fraud types in London: romance fraud, courier fraud (also known as police or banking staff impersonation), investment fraud, abuse of position fraud, and card and payment fraud. She also noted three key trends: the hybridisation of fraud types, the increasing use of cryptocurrency, and the growing role of AI.

Rory Innes, Founder and CEO of The Cyber Helpline, emphasised that many fraudsters are more skilled in marketing than technology, understanding what makes individuals believe them and act. He warned that the ability to create realistic AI-generated voices and videos could lead to a future where individuals interact with AI bots, believing them to be real people, significantly increasing the scale and success of attacks.

Victimisation and Reporting Challenges

The panel stressed that fraud victims can be anyone, with research suggesting that middle-aged individuals (40s-60s) are particularly vulnerable, alongside a rising number of young people being targeted. Young people often perceive online scams as a normal part of being online and do not report them, leading to a significant underestimation of the problem.

A major challenge identified is the low rate of further action on reported fraud cases, with figures suggesting that 87% of reports to Action Fraud (now Report Fraud ) receive no further action, rising to 98.1% in some instances. This lack of perceived consequence discourages reporting and means that valuable intelligence for disrupting criminal gangs is lost.

The language used to describe fraud victims was also highlighted as a barrier. Terms like pig butchering were criticised as demeaning, and the societal tendency to blame victims contributes to shame and reluctance to report. Ruth Halkon shared a poignant quote from a victim who felt complicit, illustrating the psychological impact of fraud that goes beyond financial loss.

Legislative and Technological Responses

The discussion touched upon the challenge of legislation keeping pace with technological advancements, particularly concerning deepfakes. While the Online Safety Bill includes references to deepfakes, it was noted that legislation often plays catch-up. The potential for an international framework to address global issues like deepfakes was considered beneficial.

The police are employing AI and machine learning tools to detect and respond to fraud, mirroring the technology used by banks. Collaboration between law enforcement and financial institutions is crucial, with systems in place for automatic alerts to banks when fraudulent accounts are reported. The City of London Police, as the national lead force for economic crime, works closely with the Metropolitan Police Service (MPS) and other agencies.

Recruitment and Retention of Specialist Staff

A significant challenge for both the MPS and the City of London Police is the recruitment and retention of specialist cybercrime officers and staff. The competitive salaries offered in the private sector make it difficult for law enforcement to attract and retain talent. However, the unique opportunity to engage in impactful work and develop skills in protecting Londoners was highlighted as a key draw. The MPS is exploring innovative training pathways and programmes like Police Now to attract individuals from diverse backgrounds.

Addressing Misconduct and Ensuring Accountability

Concerns were raised about potential misconduct within specialist teams, particularly given access to sensitive technology and data. The MPS is implementing a comprehensive people strategy and focusing on culture change to address these issues, acknowledging that while progress has been made, vigilance is ongoing. The effectiveness of the misconduct system, particularly in cases of sexual misconduct, was questioned, with a need to reduce processing times and improve the experience for both victims and alleged perpetrators.

Supporting Victims and Prevention Campaigns

The importance of victim support was repeatedly emphasised. Rory Innes of The Cyber Helpline highlighted the need for a holistic response that goes beyond financial recovery to address the mental health and emotional impact of fraud. The Cyber Helpline, despite facing funding challenges, plays a vital role in bridging gaps in victim support and reporting.

The effectiveness of fraud prevention campaigns was discussed, with a call for more robust evaluation to determine what works. Consistent messaging from trusted sources, including banks and charities, is seen as crucial. The MPS is adopting a more data-driven approach to its campaigns, focusing on impact and behavioural change.

The Role of the London Policing Board (LPB)

The London Policing Board (LPB) was discussed as a mechanism for MOPAC to oversee cultural reform within the MPS. While seen as a credible body due to its external expertise, concerns were raised about the political nature of some appointments and the potential for a lack of transparency. The LPB's influence was considered strongest in areas like the London Race Action Plan and the Children's Strategy, but weaker in driving tangible change in positive culture. The board's powers are advisory, with sanctions ultimately flowing from mayoral authority.

Safer Neighbourhood Teams (SNBs) and Community Scrutiny

The future of Safer Neighbourhood Teams (SNBs) and community scrutiny was a point of discussion. While funding for SNBs is expected to continue for the coming year, a review is underway to determine their future structure and effectiveness. The development of a community scrutiny model aims to provide more robust oversight of the MPS, with a focus on engaging diverse community voices and ensuring feedback leads to tangible change.

Legislation and the Future of Policing

The ongoing debate about the potential move of fraud and economic crime responsibilities to a national police service was acknowledged. While acknowledging the need for national coordination, the importance of maintaining local accountability and tailoring responses to community needs was stressed. The discussion also touched upon the challenges of jurisdiction, particularly with international fraudsters, and the need for a more proactive approach to disruption and prevention.

The meeting concluded with a commitment to continued collaboration between agencies and a focus on improving victim support, enhancing reporting mechanisms, and adapting to the evolving landscape of online fraud.