Tech firms must ‘stamp out’ scam adverts or face fines, under Ofcom proposals

Firms could face fines of up to £18 million or 10% of global revenue, whichever is greater, once the new rules come into effect.

Social media platforms and search engines will be held accountable for tackling scam advertising under new laws proposed by Ofcom.

Firms could face fines of up to £18 million or 10% of global revenue, whichever is greater, once the rules come into effect.

The regulator published a draft fraudulent advertising code building on the UK’s Online Safety Act which came into force last year.

A consultation to gather feedback will run until October 2, before setting out final decisions in 2027.

Ofcom said big tech companies will for the first time be legally required to implement robust steps that address scam advertising.

The proposals set out 40 measures for major platforms to adopt to protect their users from falling victim to scammers.

These include banning those who post scam ads and preventing them from making new accounts, intercepting imposters posing as legitimate businesses, and setting up dedicated channels for flagging scam ads.

Platforms will also be expected to rigorously test AI (artificial intelligence) tools that can create adverts to reduce the risk of criminals misusing the technology.

Oliver Griffiths, Ofcom’s online safety group director, said: “For too long, victims have been exposed to scam ads online with tech giants simply not doing enough to combat the fraudsters using their platforms.

“Today we’ve set out nearly 40 practical, protective measures for companies to adopt.

“We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users.

“Platforms should not drag their heels – they can start making improvements for their users now.

“Sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”