Millions of people will be left at risk of financial scams unless the government takes urgent action in its forthcoming Online Safety Bill, experts have warned.

The Money and Mental Health Policy Institute, a charity founded by Martin Lewis, says that people with mental health problems are particularly vulnerable.

The Online Safety Bill is set to give Ofcom new powers to tackle offensive online content, but does not provide regulators with mechanisms to crack down on online financial scams.

The MMHPI wants Ofcom to be able to force online platforms such as Facebook, Twitter, Instagram and Google to remove content that promotes harmful schemes and cons.

The charity’s research found that six in ten UK adults feel the government needs to step up online protections against financial harm.

It says that people with mental health problems face a much greater risk of financial harm when using online services — from impulsive spending or taking out high cost credit, to dealing with scammers.

The charity says this is partly the result of common symptoms of mental illness, such as low mood, reduced concentration and impulsivity, which can make it harder for people to control online sending or spot potential scams.

People with mental health problems are three times more likely to have been victim of an online scam, compared to the wider population (23 per cent compared to 8 per cent). 

If reflected nationally, this would amount to 4.6m people with mental health problems who have been victims of an online scam .

The government has promised that its new Online Safety Bill, which is due to be introduced into Parliament this year, will create the “most comprehensive online safety regime in the world”. 

However, MMHPI says that the government has explicitly ruled out giving Ofcom powers to tackle online scams and other financial harms.

Martin Lewis says: “I simply don’t understand how an Online Safety Bill can simply exclude the epidemic of scams the UK faces. 

“Scams don’t just steal people’s money, it often takes their self-respect and mental health too.

“The government has promised to set world-beating standards for online safety, but as it stands the Online Safety Bill will utterly fail to protect people from the growing threat posed by online scammers, especially to vulnerable people.

“I’ve been campaigning for action on online scams for three years, but UK consumer protections and fraud investigations remain hopelessly inadequate and out of date. 

“That’s leaving vulnerable people exposed to increasingly sophisticated online criminals, and causing grave distress in the middle of this global crisis.

“The Online Safety Bill represents a golden opportunity for the government to put this right, by putting proper safeguards in place against scams, but unthinkably it is planning to pass up the chance to put things right. 

“We can’t continue to leave big tech, much of which comes from the original Wild West, to police itself.

“We are urging the government to rethink this plan. 

“Failing to include scams in the Bill will not only make a mockery of its promise to create world-leading online protections, it will also leave vulnerable people defenceless against crime.”

The Personal Investment Management & Financial Advice Association, Which?, UK Finance and others have all called for financial scams to be included in the Bill.

Pimfa chief executive Liz Field says:“It is vital that people are protected from all forms of online exploitation and that the most vulnerable in our society are especially protected.

“That six in 10 people want to see online protection from financial harm enhanced comes as little surprise.

“Fraudsters deliberately target the vulnerable as the Money and Mental Health Institute’s research shows. 

“And there is evidence too from the Financial Services Compensation Scheme, from Which? and from our own members that shows the sophistication of online scams is such that everyone is, to some degree, now vulnerable to online scams. 

“Online fraudsters scam people out of their life savings. 

“The impact of such scams is devastating on the mental health of victims.

“The Online Safety Bill is a clear opportunity to put in place a legal framework that would help improve consumer protections against what are increasingly convincing online scams.

“Such a framework has significant support from across the financial services industry.

“The internet has inadvertently facilitated fraudsters for many years but a large number of them could be prevented from making victims of consumers with greater cooperation from domain name registration services, internet service providers and online platforms such as social media and search engines. 

“I hope the government listens to our collective concerns and acts upon them.”