Mr. Robert G. HughesTo ask the President of the Board of Trade if he will announce the recommendations of the industry and Government study group on mobile phone fraud which was set up in June. [39327]
§ Mr. Ian TaylorI am pleased to announce the recommendations of the study group on mobile phone fraud which I set up in June. The group, comprising senior representatives from the industry, the Federation of Communication Services, my Department, the Home Office and the police, has analysed in detail the technical and legislative issues which need to be tackled if this fraud is to be combated more effectively.
The recommendations which Government will consider are:
1. Industry and the Government should fully support the introduction of the crime prevention scheme being set up by the FCS and endorse its early implementation. Once the scheme is in force, the four network operators—Vodafone, Cellnet, One 2 One and Orange—service providers and dealers in the industry must use their best endeavours to ensure that any equipment bought or connected by them is not stolen and that records are kept to demonstrate the precautions they have taken. Those that are found not to conform to this scheme will be unable to operate in the industry. Subject to the Director General of Fair Trading being satisfied with the scheme on competition grounds, it should be launched by December 1995.2. The Government should consider extending the range of offences under section 42 of the Telecommunications Act 1984 so that, in addition to the existing offence of dishonestly obtaining telecommunications service with intent to avoid payment, it would also cover, broadly, the possession or supply of equipment capable of use in the course of or in connection with the current section 42 offence. The maximum penalty for these new offences should be five years and the penalty for the existing section 42 offence should also be increased from two to five years. This would make all offences arrestable, provide the police with powers to search for and seize evidence and will be a major deterrent to those intent on using scanners or other high technology equipment with intent to defraud the network.3. Industry, police and Government should take action to build on previous initiatives to raise the level of public awareness of the problem of mobile phone fraud and crime and foster further crime prevention initiatives. In particularthe industry increases its work with the police through seminars and training packages to raise the level of awareness of police forces around the UK to mobile phone fraud and crime and works with the police to implement any new legislation,the industry and the police take action to encourage owners of handsets to mark their phones.The Government welcome the recommendations of the study group, especially the proposed crime prevention scheme which should make a substantial contribution to reducing fraud within the industry. The group rightly recognises that the proposal for further legislation will need to be considered carefully, in particular taking into account any resource implications. The Government also welcome the practical suggestions of the study group to raise the level of public awareness. I am keen to see wider use of mobile phone marking schemes, such as post code markings or a register. It is only when those who own mobile phones appreciate that their phone is an attractive target for fraud and crime, and protect it accordingly, that serious inroads will be made into reducing the problem.
548WI am delighted at the work done by this group over the last few months. It has proved a highly effective forum for the industry, the police and the Government to work together to consider what further actions are needed to underpin the work of the industry in fighting mobile phone fraud and crime. These recommendations need to be considered very carefully. In respect of the suggested change to the Telecommunications Act, I am having discussions with ministerial colleagues, including at the Home Office, in respect both of the legislative programme and the implications for resources.
A briefing paper describing the group's summary of the threat posed by mobile phone fraud and the group's subsidiary recommendations has been placed in the Libraries of both Houses.
§ Mr. William RossTo ask the President of the Board of Trade (1) if he will place in the Library a copy of the report by his industry and government study group of mobile phone fraud and associated topics; and if he will make a statement as to his current and future proposals on these matters; [38340]
(2) if he will set out the evidence, together with all figures of the incidence of cloning of mobile telephones for (a) each network licensed by his Department and (b) the combined networks, stating the source from which the figures were obtained and measures taken to verify those figures that have been presented to his Department; [38342]
(3) if he will place in the Library a copy of all evidence, and including all figures, indicating the source from which they were obtained, and indicate the measures taken to verify those figures presented to his recent industry and Government study group on mobile phone fraud and associated topics; [38341]
(4) if he will set out the evidence, with the figures, stating the individual sources from which they were obtained, concerning the cases of fraud involving the provision and use of mobile phones overall and for each network licensed by his Department. [38343]
§ Mr. TaylorI refer the hon. Member to the answer I have given today to my hon. Friend the Member for Harrow, West (Mr. Hughes). Individual cases of mobile telephone fraud are a matter for the companies involved, the police and the prosecution authorities. The mobile telecommunications industry did provide some estimates for the overall scale of mobile phone fraud as part of their contribution to the work of the industry and government study group on mobile phone fraud. These have been reproduced in the briefing paper mentioned in my answer. The paper has been placed in the Libraries of both Houses.