The United Kingdom is set to require large technology platforms to outlaw scam advertisers as part of a new drive to combat online fraud, according to fresh regulatory proposals.
Facebook, Instagram, Snapchat, X and YouTube will be obliged to block fraudulent advertisers and stop them from recreating accounts, under measures aimed at the largest social‑media services.
Proposed actions include mitigating the hijacking of accounts that are then used to host scams, ensuring that ads for banking or financial services receive proper legal clearance, and providing law‑enforcement agencies with tools to detect fraudulent advertisements.
The UK communications regulator, Ofcom, unveiled the plans as the next phase of the Online Safety Act (OSA) implementation, which obliges technology firms to protect users from harmful material.
The scam‑ad obligations cover major social‑media platforms, Google and ChatGPT. According to Ofcom, such fraudulent ads cost UK consumers roughly £200 million annually.
Oliver Griffiths, Ofcom’s director of online safety, said that technology companies have not done enough to fight fraudsters. “We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users,” he added.
When the new rules enter force and become legally binding under the OSA, non‑compliance could lead to penalties of up to 10 % of a platform’s global revenue. Ofcom urged companies to tighten their anti‑fraud safeguards without delay, although the consultation that began on Friday will close in October, with final decisions reserved for next year.
The consumer group Which? welcomed the proposals, criticising tech firms for treating scam ads as a “profitable income stream”, yet warned that implementation would not occur until next year.
Rocio Concha, Which?’s policy and advocacy director, said, “The timing is especially concerning as rapid advances in AI are making scams increasingly sophisticated.”
The Bank of England cautioned the public last month about AI‑generated scams, following the spread of deep‑fake videos depicting Nigel Farage in a confrontation with its governor. Finance expert Martin Lewis has repeatedly called on the government to crack down on scam advertisements that misuse his image.
The advertising crackdown is part of a broader OSA consultation targeting “category 1” tech firms, which include Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. Google and ChatGPT are placed in a secondary category that exempts them from some restrictions but still obliges them to meet the scam‑ad requirements.
Alongside these plans, Ofcom has published draft rules for category 1 platforms concerning journalistic content, including safeguards to prevent arbitrary restriction of access to news and “content of democratic importance”, provision for publishers to present their case before removal, labelling or down‑ranking, and an expedited complaints process for journalistic material.
The regulator has also issued proposals for category 1 platforms to minimise users’ exposure to content depicting suicide, self‑harm, eating disorders, hate speech or abuse. Ofcom stipulates that users be offered options to reduce exposure, such as complete removal or blurring, and that they can block, mute or filter interactions with non‑verified accounts.
Finally, Ofcom has outlined content rules for category 1 services that delineate permissible material and outline consistent implementation procedures.
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