Cold Calling Ban

Rishi Sunak has recently announced plans to expand the ban on cold calling to cover all financial and investment products. This move is aimed at protecting individuals from scams and fraudulent schemes that have become all too common in recent years.

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Cold calling refers to unsolicited phone calls made by companies or individuals attempting to sell products, services, or even scam unsuspecting individuals.

It has provided the perfect breeding ground for fraudsters, who employ various manipulative techniques to exploit unsuspecting victims. Vulnerable groups, such as the elderly or those with limited financial knowledge, are often the targets of these scams.

By outlawing cold calling, the government hopes to significantly reduce the effectiveness of these fraudulent operations and decrease the number of people falling victim to these schemes.

Under the current Financial Guidance and Claims Act 2018, cold calls are already banned for personal injury firms and pension providers, unless the consumer has explicitly agreed to be contacted. However, the government plans to consult on extending this ban to encompass all cold calls related to financial products. This means that the public will soon have the confidence to hang up immediately upon receiving a cold call about financial matters, knowing that it is likely a scam.

Other measures included in the Policy Paper are that the Government will:

• establish a new national fraud squad with over 400 new posts and make fraud a priority for the police;

• deploy the UK intelligence community and lead a new global partnership to relentlessly pursue fraudsters wherever they are in the world;

• put more fraudsters behind bars through better investigation and prosecution processes for fraud and digital offences;

• ban SIM farms which are used by criminals to send thousands of scam texts at once;

• stop fraudsters from being able to send mass text messages by requiring mass texting services to be registered, subject to a rapid review;

• Replace Action Fraud with a state-of-the-art system for victims to report fraud and cyber crimes to the police;

• stop people from hiding behind fake companies and create new powers to take down fraudulent websites;

• work with industry to make sure that intelligence is shared quickly with each other and law enforcement;

• change the law so that more victims of fraud will get their money back;

• overhaul and streamline fraud communications so that people know how to protect themselves from fraud and how to report it;

• make the tech sector put in place extra protections for their customers and introduce tough penalties for those who do not; and

• shine a light on which platforms are the safest, making sure that companies are properly incentivised to combat fraud.

Limitations

While the ban on cold calling is undoubtedly a positive step, it's important to recognise that determined scammers are unlikely to be deterred by legislation alone. These fraudsters constantly adapt their tactics to evade regulations and exploit any vulnerabilities they find. They may resort to operating from offshore locations, using different phone numbers, or even turning to alternative forms of communication such as email or social media.

I could possibly argue that a complete ban on cold calling will inadvertently impact legitimate businesses that rely on this marketing strategy to connect with potential customers.

Despite its negative reputation, cold calling has actually been a successful strategy for us in the past.

We have been able to establish and maintain valuable relationships with clients through well-executed cold calling campaigns. By reaching out proactively, we have identified new opportunities, showcased our services, and built many trusted relationships.

Perhaps our relationship with you began life as a cold call.

In Summary

It's crucial for consumers to remain vigilant even with the ban on cold calling. Fraudsters will likely find new ways to exploit you, such as through email or social media scams.

Only last week my mum received a text “from me” saying I had lost my phone and to use this new number. She was aware it was a scam, but only because her friend had been caught out by it only a month earlier.

For those who have not heard of it, this scam involves parents receiving a text message seemingly from their child, claiming that they have lost or had to replace their phone.

The text often requests immediate financial assistance, playing on the emotional instinct of parents to help their children in times of need.

This scam preys on the vulnerability and trust between family members, attempting to trick parents into sending money without verifying the authenticity of the message.

It serves as a reminder of the importance of staying vigilant and verifying such requests through alternative means of communication before taking any action.

If in doubt, call someone you trust.