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Labour wants new powers that allow security services to crack down on cyber-crimes, but only with extra checks on how sensitive data is used.

A 30 per cent hike in recorded online fraud is just the "tip of the iceberg", shadow home secretary Yvette Cooper will warn, but fears about abuse of information by British intelligence agency GCHQ in the wake of leaks by ex-US security contractor Edward Snowden means new safeguards are needed to protect privacy.

Last year controversial plans by Home Secretary Theresa May to enable the police and security services to track emails and other online communications under what was labelled a "snooper's charter" were blocked by the Liberal Democrats.

Cooper will warn the government it must not "bury its head in the sand" as she calls for reforms to keep up with the ever-changing cyber world, saying much stricter controls over access to private data must be introduced to give the public confidence amid fears about the way information can currently be accessed and used.

Today, in a speech in central London to the Demos think tank, Cooper will call for a new national strategy for tackling online fraud, tougher action to tackle online child pornography and an overhaul of parliament's Intelligence and Security Committee, which keeps a check on the work of the intelligence agencies...