Ofcom proposes tougher rules on scam ads
Scam ads rules would require major platforms to strengthen checks, reporting and enforcement.
Ofcom has proposed new rules requiring major online platforms to do more to prevent scam advertising, including verifying advertisers, blocking repeat fraudsters and making fraudulent adverts easier to report.
The draft Fraudulent Advertising Code is being developed under the UK’s Online Safety Act and would apply to some of the country’s largest social media platforms, search engines and other online services.
According to Ofcom, more than half of UK adults have encountered potentially fraudulent adverts online, while victims lose an estimated £200 million each year. The regulator said online platforms have not done enough to stop criminals exploiting their advertising systems.
The proposed code sets out nearly 40 measures, including banning accounts that publish scam adverts, preventing repeat offenders from opening new accounts, verifying the identity of advertisers and confirming that firms promoting banking or investment services are properly authorised.
Platforms would also be expected to strengthen account security, reduce the risk of account hijacking, test AI-powered advertising tools against misuse and establish dedicated reporting channels for trusted organisations, including law enforcement agencies, to flag fraudulent adverts for rapid removal.
Ofcom also wants platforms to use proactive technologies to detect and block fraudulent advertising before it reaches users. A separate consultation on those proposals is expected this autumn alongside a broader package of online safety measures.
The consultation remains open until 2 October, with final decisions expected next year. Once approved by Parliament, companies that fail to comply could face fines of up to £18 million or 10% of global annual revenue, whichever is higher.
Alongside the advertising proposals, Ofcom also published draft rules for Category 1 services under the Online Safety Act. These include stronger protections for journalistic content and democratic debate, improved user controls over harmful content, more effective complaints procedures and greater transparency through published risk assessment summaries.
Why does it matter?
The proposals would expand platform responsibility beyond user-generated content to the advertising systems that increasingly enable online fraud. By introducing requirements for advertiser verification, proactive detection and stronger enforcement against repeat offenders, Ofcom is seeking to make scam prevention a core responsibility of online platforms rather than relying primarily on users to identify fraudulent adverts.
The draft code also reflects a broader regulatory trend towards greater accountability for digital advertising ecosystems. As AI-generated content and increasingly sophisticated scams become more common, regulators are placing greater emphasis on platform governance, advertiser verification and proactive risk management.
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