Scam adverts have become one of the most common ways fraudsters target people online. Every day, fake investment opportunities, bogus retailers and criminals impersonating trusted organisations appear across social media and search engines, persuading people to hand over money or personal information.
Now, Ofcom has unveiled proposals that would require some of the UK’s biggest technology companies to do much more to stop those adverts appearing in the first place.
The regulator has launched a consultation on nearly 40 new measures under the Online Safety Act aimed at reducing fraudulent advertising across major search engines and social media platforms.
If adopted, the rules would require companies to verify advertisers, identify scam adverts more effectively, remove them quickly and stop known fraudsters returning under new accounts.
Why are the new rules needed?
Scam adverts have become a major driver of online fraud.
Criminals regularly impersonate banks, investment firms, retailers, delivery companies and even well-known celebrities to persuade people they are dealing with a genuine business.
According to Ofcom, fraudulent adverts are estimated to cost UK consumers around £200 million every year.
For many victims, the scam doesn’t end when they click on an advert. It often ends with them being persuaded to transfer money directly from their own bank account to a fraudster.
This is known as Authorised Push Payment (APP) fraud. It happens when someone is tricked into making a bank transfer because they believe they’re paying a genuine person or business. Investment scams, purchase scams and impersonation fraud frequently begin with adverts seen online. APP fraud is one of the fastest-growing types of fraud in the UK, which is why banks, regulators and technology companies are all under increasing pressure to do more to prevent it.
What would change?
Under Ofcom’s proposals, the largest online platforms would be expected to take much stronger action to prevent scam adverts appearing.
Measures being considered include:
- Continuously reviewing paid advertisements for signs of fraud
- Removing scam adverts quickly
- Verifying the identity of advertisers
- Preventing banned scammers from opening new advertising accounts
- Making it easier for users to report fraudulent adverts
- Creating searchable public advert libraries
- Checking that advertisers offering financial services are properly authorised
Companies that fail to meet their legal duties could eventually face fines of up to £18 million or 10% of their global annual turnover, whichever is higher.
Why this matters for APP fraud
The proposals highlight how closely online advertising and financial fraud have become linked.
Many APP fraud cases start with a convincing advert, fake website or sponsored social media post. Victims often believe they are dealing with a legitimate company or trusted organisation before being persuaded to transfer money.
Even with stronger platform rules, experts warn that fraudsters will continue adapting their tactics. That means consumers should remain cautious when responding to adverts promoting investments, unusually cheap products or urgent financial requests.
Can you recover money lost to a scam?
If you’ve already transferred money after being deceived by a scam advert, you may still have options.
Under the UK’s APP fraud reimbursement rules, many victims can ask their bank to refund money lost through authorised push payment scams, although eligibility depends on the circumstances of the case.
Even if the scam involved cryptocurrency, you may still have options if you first transferred money from your UK bank account to the fraudster as part of the scam.
Whether reimbursement is available will depend on factors including:
- How the payment was made
- When the scam happened
- Whether the claim falls within the applicable reimbursement rules
- The specific circumstances of the fraud.
Every case is different, and not every loss will qualify.
If you believe you’ve been the victim of Authorised Push Payment (APP) fraud, you can make a reimbursement claim directly to your bank. If the bank refuses your claim, you can appeal to the Financial Ombudsman Service free of charge. Many people successfully handle the process themselves.
However, if you prefer to seek specialist legal advice, a solicitor can assess your case, help prepare your complaint and, where appropriate, challenge your bank’s decision or take the matter to the ombudsman.
The right approach will depend on your individual circumstances, but it’s important not to assume that a refusal from your bank is necessarily the end of the road.
We may be able to help
At Join the Claim, we help people affected by APP fraud understand their options.
We offer a quick online eligibility check and, where appropriate, can connect you with a trusted law firm that can assess your case and advise whether you may be able to pursue reimbursement. They work on a no-win, no-fee basis.
Join the Claim connects consumers with SRA-regulated lawyers. Visit the claim page to check your eligibility if a claim is open with one of our trusted legal partners. If a group action has not yet been launched, you can register your interest and we’ll keep you informed if a partner firm decides to take a claim forward.
