Lord Hanson of Flint (Lab)

My Lords, I first give my appreciation to the work of the noble Baroness, Lady Morgan of Cotes, and the noble Lords, Lord Young of Cookham and Lord Vaux of Harrowden, in producing their report on this matter. It was during my enforced sabbatical from Parliament, so I was not party to the discussions at that stage. It is useful to have that continuum of discussion, and the previous Government’s initial intentions have been carried forward by this Government as a whole. Amendment 358, as the noble Lord, Lord Vaux of Harrowden, mentioned, would expand the definition of SIM cards. To be clear, the Government’s consultation and evidence gathering as part of the preparation for this Bill focused on physical SIM cards, which are where the current and most significant threats arise and what these clauses seek to address. The provisions in the Bill are designed to tackle the misuse of physical SIM farms, which are widely used for criminal purposes such as fraud and spam. We are all aware of how that manifests on our phones and those of people we know and work with. Virtual SIM technology is developing, but it is not currently presenting the same scale of risk, and the evidence we have from the consultation does not support extending the ban at this time. Physical SIM farms pose a significant and immediate threat because they enable large-scale criminal activity. Unlike virtual SIMs, physical SIM cards are harder to trace, as they are not inherently linked to a specific handset or verified identity. Their anonymity makes them ideal for fraud, phishing and mass spam campaigns. Furthermore, the trade in physical SIM cards creates a black market where thousands of cards can be bought and sold with minimal or no oversight. This flow of unregistered SIMs fuels organised crime, facilitates money laundering and undermines law enforcement efforts. Virtual SIM technology, by contrast, is generally more secure and traceable because it requires integration with the device software and often involves stronger identity checks. At present, I say again, there is no evidence of virtual SIMs being exploited at scale for criminal purposes. Our focus therefore remains on the tangible and proven harm caused by physical SIM cards.