Under a proposed new law, the UK is set to ban cold calling of financial products.

The change comes as part of a clampdown on fraud by prohibiting telemarketing calls for financial products such as insurance and cryptocurrency schemes.

The plan to combat fraud includes measures to prevent “spoofing” of phone numbers. This is when con artists alter the telephone number and name displayed on the recipient’s Caller ID to deceive them into believing a call is legitimate.

Also prohibited are so-called “Sim Farms” in which a significant number of Sim cards are used to send text messages in bulk.

In addition, a new National Fraud Squad of 400 investigators is also set to be established to target those committing fraud. According to the government, the new fraud squad will collaborate with local and international forces and British intelligence services.

A £30 million fraud reporting service has also been confirmed, which will replace the existing Action Fraud service.

The proposals have been welcome by consumer groups. Prime Minister Rishi Sunak said that the new rules will tackle “cold-hearted” scammers who “ruin lives in seconds.”

As Editor of Lawble, Gill helps business and individuals become better informed about their legal rights. Gill is a content specialist in the fields of law, tax and human resources.