UK Treasury Considers Ban on Finance Cold Calls

As the United Kingdom prepares for a ban on finance-related cold calls, the UK Treasury has issued a call for evidence and consultation to gain a comprehensive understanding of the impact on businesses and the costs associated with implementing the prohibition.

To modernize its approach to intelligence-led policing, the British government announced on May 3 that it would add 400 new positions to its fraud strategy.

According to the National Crime Agency, fraud costs the country approximately $8.7 billion ($7 billion) annually.

“The government will not tolerate this behavior,” said Andrew Griffith, the Economic Secretary of the Treasury, criticizing the increase in unsolicited calls for financial services and products that target the most vulnerable members of society.

HM Treasury’s case study on crypto cold call scam. Source: gov.uk

As shown above, HM Treasury highlighted numerous instances in which cold calls led to investor losses, one of which involved cryptocurrencies.

HM Treasury intends to impose a blanket ban on finance cold calls. Source: gov.uk

While the government of the United Kingdom has previously enacted numerous prohibitions and restrictions on cold calling, fraudsters frequently find ways to circumvent the law.

Intending to enact a blanket prohibition on financial cold calls, the Treasury posed 19 questions to stakeholders as a means of ensuring maximum impact on scammers and minimal impact on businesses that rely heavily on cold calling prospects.

Consultation ends on September 27, 2023. According to the government’s response, such an approach has the potential to utterly undermine the internationally accepted recommendations of international organizations and standard-setters.