Reporting Fraud to the Police

The Sterling Prevention Unit of the Metropolitan Police Service has prepared the following advice. It relates to making crime allegations to the Police as a result of the process of buying or selling a vehicle. Please also read through the VSTAG advice [see note 1 below].

1. Faulty Vehicles or problems with a seller.

If there is a fault with a vehicle that has been purchased, or an issue with the seller, the best source of advice is Consumer Direct on 08454 04 05 06 which is the first point of contact for Trading Standards [note 2].

2. Fraud Act 2006 [note 3].

Vehicle buyers and sellers are vulnerable to fraud. This may be a simple non-delivery fraud where payment is made and the vehicle is never received. More sophisticated frauds may involve an invitation to pay via a shipping or escrow web site giving a false sense that the money is safe pending receipt of the vehicle [note 4].

Criminal cash-back fraud is committed following an invitation to cash an overpayment cheque; this cheque will clear initially then be returned by the bank as either stolen or forged. By this time victims will have been requested to send the overpayment to the other party, often using a money transfer company such as Western Union [note 5].

Most crime allegations will be under section 2 of the Fraud Act 2006, “Fraud by False Representation”. Unlike the previous offences of deception under the Theft Act 1968, “False Representation” includes attempts to defraud and it is not necessary for a person to have been “deceived” to prove the offence.

If a vehicle is apparently stolen, or has been sold by a person that does not have the right to sell the vehicle, this may constitute fraud or other criminal offences. The Police may decide to seize the vehicle, either as a result of an investigation, or more inconveniently, if the vehicle is stopped and questions are raised about the ownership of the car. Police enquiries may include the arrest of the person in possession of the vehicle.

3. Duty of Police to take a report.

Under Home Office “National Crime Recording Standard” [note 6], The first Police officer or member of Police Staff empowered to do so should take a report. In practice, a report should be made to the local Police Station; this could be in person or by phone. This should be taken as a “Crime report”, unless there is “credible evidence to the contrary”. Make a note of the crime reference number and details of the officer taking the report.

With many Fraud offences, the exact location of the offender cannot be proved at the time of taking a report. If this is the case, the Home Office “Counting Rules” [note 7] state that the location of the offence is the location of the victim, and therefore it is the responsibility of the Police that cover the victim’s address to report the crime and carry out an investigation.

4. Preserving Evidence.

All emails and other documentation should be kept in order to assist the Police. Make notes of any other conversations, including phone calls and phone numbers. Preserve cheques, letters and envelopes by placing them in fresh envelopes or plastic bags. If a cheque or other documents have been received, handle them by the edges, as they may be required for fingerprint processing. Take these to the Police Station when making a report.

Emails should be kept and a print out should be taken to the Police when making a report. Emails have “Internet Headers”. These show the origin and route that an email has taken to get to your computer. Instructions on how to view and print out “Internet Headers” can be found on the Internet [note 8].

5. Overseas Offences.

If money has been sent overseas, or the fraudster says that they are in Dublin, Spain or anywhere else outside the UK, this may not be the case. Local Police may initiate enquiries, via Interpol, to the relevant country. That country may take over the enquiry and may also have received enquiries from other victims.

6. The Investigation process.

Once a report of crime has been taken, it is up to the Police to decide how to investigate the offence. This depends on the seriousness of the loss and amount of information available and could result in no formal investigation taking place. The Home Office Rules only apply to the recording of crime.

Under the Victims Charter, Police must update victims of crime with the progress of the investigation [note 9].

7. Notes.

For further information, please see the following:

1. Vehicle Safe Trading Advisory Group – VSTAG
www.Vstag.org.uk

2. Consumer Direct.
www.consumerdirect.gov.uk 08454 04 05 06.

3. The Fraud Act 2006.
www.opsi.gov.uk/acts/acts2006/ukpga_20060035_en.pdf

4. Shipping and Escrow Frauds.
www.escrow-fraud.com

5. Metropolitan Police Fraud Alert, Money Transfer advice.
http://www.met.police.uk/fraudalert/money_transfer.htm

6. National Crime Recording Standard.
www.homeoffice.gov.uk/rds/pdfs07/countrecstan07.pdf

7. Home Office Counting Rules.
The relevant counting rule is 53D and can be found on the following link:
www.homeoffice.gov.uk/rds/pdfs07/countfraudforg07.pdf
Specifically, Rule (6 of 7) and (7 of 7) apply.

8. Internet Headers.
www.met.police.uk/fraudalert/internet_headers.htm

9. Victims Charter.
http://www.homeoffice.gov.uk/documents/victims-charter

Further information on fraud and economic crime can be found by visiting the Metropolitan Police Fraud Alert web site.
www.met.police.uk/fraudalert