Major online platforms, including social media giants and search engines, are facing stringent new regulations aimed at curbing the proliferation of fraudulent advertisements. Ofcom, the UK's communications regulator, has published draft proposals outlining how tech firms will be expected to proactively identify and remove scam ads, with severe financial penalties for those that fail to comply.
These tougher rules come after years of campaigning by consumer groups like Which?, which successfully pushed for paid-for scam adverts to be included within the scope of the Online Safety Act. Although the Act became law in 2023, the specific provisions relating to scam ads have yet to be fully enforced. Ofcom's latest consultation seeks to finally implement these crucial protections, with final rules expected to be published next year.
The proposed measures are comprehensive, requiring platforms to ban fraudsters and prevent them from creating new accounts. They will also need to intercept imposters by verifying the identity of new advertising account holders and ensure that anyone promoting banking or investment services is genuinely authorised by the Financial Conduct Authority (FCA). This aims to tackle the widespread issue of investment fraud, which saw a 26% increase in cases last year, often resulting in life-changing financial losses for victims.
The impetus for these rules is clear: recent data from UK Finance revealed that nearly two-thirds (66%) of all bank transfer fraud in 2025 originated online. This highlights the urgent need for platforms to take greater responsibility for the content they host. While some companies, such as Meta, claim to have reduced scam ads, consumer advocates continue to report a significant volume of sophisticated scams, including deepfake videos of celebrities promoting fake investments and fraudulent holiday accommodation listings.
Non-compliance with Ofcom's new rules could prove incredibly costly for tech giants. Fines could reach up to £18 million or 10% of a company's global revenue, whichever figure is greater. This substantial penalty underscores the regulator's determination to hold platforms accountable and shift them from a reactive to a proactive stance in the fight against online fraud.