§ Mr. AlexanderTo ask the Secretary of State for Social Security what estimate he has made of the fraud savings resulting from automation of benefit payments at post offices. [126521)
§ Mr. RookerThe move to Automated Credit Transfer as the normal method of payment will bring significant savings from reduced levels of fraud. The move will begin in 2003, but full savings will not be realised until 2005, when the transition from current paper based methods of payment is complete.
A large number of fraud prevention measures are in place to manage the fraud risk relating to order books and girocheques but latest figures indicate that despite these measures around £100 million was lost in 1998–99.
The modernisation and automation of methods of payment will virtually eliminate instrument of payment fraud.