A coalition of organisations is calling on ministers to bring in new laws to make online platforms such as Facebook and Amazon legally responsible for online scams - as it emerged cases of fraud in Scotland have soared during the pandemic.

The Dunfermline-based Carnegie UK Trust is one of 17 organisations who are warning that a failure to make online platforms such as Facebook and Amazon directly responsible for any scam content on their site risks the UK failing in its ambition to be the safest place in the world to be online.

Carnegie UK Trust has jointed other organisations who have signed up to a joint letter to the Home Secretary and Digital Secretary, urging the government to include online scams in its proposed Online Safety Bill – which could be announced in next week’s Queen’s Speech – so that consumers are better protected against the devastating financial and emotional harm caused by these crimes.

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The safety bill will introduce new rules to make companies based anywhere in the world take responsibility for the safety of their online users in Britain from harm like child sexual exploitation, terrorism, hate crime and sale of illegal weapons and drugs.

But the groups are concerned that it does not cover online scams and are saying they must be.

It comes as new figures show that fraud cases in Scotland have risen by 63% from April 2020 and March 2021.

The figures revealed there were 17,818 fraud cases in the last 12 months, up from 10,957, despite an overall reduction in the level of crime by seven per cent since Covid struck.

Police have attributed the marked increase in fraud cases to people spending more time online, from work to social engagement and shopping.

It has also emerged that £1.8m has already been lost to pension fraud this year across the UK.

Action Fraud, the UK's scams reporting centre says there has been an increase in reports of such scams so far this year, with 107 reports of pension fraud received in the first three months of 2021.

This was an increase of nearly 45% when compared with the same period in 2020.

Action Fraud said there had previously been a steady fall in pension scam reports from 1,788 in 2014 to 358 in 2020 - a reduction of nearly 80%.

It has launched a national awareness campaign to remind people to do their research before making changes to their pension arrangements.

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The groups believe online platforms should be capable of being held to account in courts of law if they play host to anything that might result in an online scam.

William Perrin, trustee at the Carnegie UK Trust, said: "Our work at Carnegie UK Trust has set out the case for a systemic, statutory duty of care that would make online platforms take responsibility for the design and processes of their services to reduce online harm.

"This new research underlines the urgent need for action to protect consumers from harms such as online fraud and scams - and the Online Safety Bill is the way to do it.

"Both the City of London Police and the National Economic Crime Centre have told Parliament that their current powers are not enough to limit the spread of online fraud and scams. It is vital that the Government reconsider their inclusion in the Online Safety Bill."

The organisations that have signed the letter also include the consumer organisation Which, the Money and Mental Health Policy Institute, UK Finance, the Personal Investment Management and Financial Advice Association (PIMFA), the City of London Corporation, City of London Police, The Investment Association, Association of British Insurers (ABI), MoneySavingExpert and Age UK.

Action Fraud fears that online scams are on the increase as the coronavirus crisis has meant people are spending more time online than ever before.

In their letter, the organisations write: “Online platforms play a pivotal role in enabling criminals to reach and defraud internet users through the hosting, promotion and targeting of fake and fraudulent content on their sites, including adverts that they make significant profits from. Yet platforms have very little legal responsibility for protecting their users, despite often being the best placed to tackle harmful content.

“While we recognise there are initiatives being progressed by the Government designed to tackle aspects of online fraud, there is a growing risk that current plans for future regulatory frameworks are not taking a comprehensive approach to the threats faced by consumers and do not reflect the extent or urgency of the problem.”

UK Finance figures show a 32% increase in investment scam cases in 2020, which are often promoted through adverts on search engines and social media offering higher than average returns.

Anabel Hoult, chief executive of Which?, added: “The biggest online platforms have some of the most sophisticated technology in the world, yet they are failing to use it to protect scam victims who are suffering devastating financial and emotional harm due to the flood of fake and fraudulent content posted online by criminals.

“The time for self-regulation is over, as clearly it has not worked. The case for including scams in the Online Safety Bill is overwhelming and the government must take the opportunity to act now. Online platforms must be given a legal responsibility to prevent, identify and remove fake and fraudulent content on their sites so that their users are better protected.”