For years, social media companies have been criticised for allowing scam adverts to appear on their platforms. Now, Ofcom has unveiled proposals setting out how some of the UK’s biggest technology companies will be expected to tackle scam adverts under their duties in the Online Safety Act.
The regulator has launched a consultation on nearly 40 new measures aimed at tackling fraudulent advertising on major search engines and social media platforms.
If adopted, the rules would require companies to verify advertisers, detect fraudulent adverts more effectively, remove them quickly, and prevent known scammers from returning.
Why are the new rules needed?
Scam adverts have become an increasingly common way for fraudsters to reach victims.
Criminals frequently impersonate trusted brands, investment firms, retailers and even well-known public figures to persuade people to hand over money or personal information.
According to Ofcom, fraudulent adverts are estimated to cost UK consumers around £200 million every year.
Campaigners argue platforms have not done enough to prevent scam adverts from appearing in the first place. These adverts are often used to trick people into handing over money or personal information, sometimes leading to authorised push payment (APP) fraud, where victims are persuaded to transfer money directly to criminals believing they are dealing with a legitimate business or trusted organisation.
What would change?
Under Ofcom’s proposals, the largest online platforms would be expected to take much stronger preventative action.
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.
Martin Lewis: action has taken too long
MoneySavingExpert founder Martin Lewis welcomed the proposals but said they were years overdue. Lewis has campaigned against online scam adverts for almost a decade, including bringing legal action against Facebook in 2018 after thousands of fake adverts used his name and image to promote investment scams.
While describing Ofcom’s plans as a step forward, he warned that implementation has been repeatedly delayed and argued the proposals still leave significant gaps. In particular, the draft rules focus on the largest platforms and search engines, meaning smaller websites, apps and other advertising networks may remain outside the regime.
A wider debate about platform responsibility
The consultation highlights a broader shift in how governments are approaching technology companies.
Governments and regulators are increasingly asking not only whether platforms remove harmful content quickly enough, but whether they should take greater responsibility for preventing harm in the first place. That debate extends well beyond financial scams.
Questions are also being raised about:
- Child online safety
- Harmful recommendation algorithms
- Addictive platform design
- Image-based abuse
- Privacy and age verification
- Online fraud
Together, these issues are placing growing pressure on technology companies to demonstrate that their platforms are safe by design, rather than relying on users to identify problems themselves.
To explore the wider debate around online harms, social media safety and platform responsibility, visit our Social Media Safety & Online Harms hub.
What happens next?
The consultation on Ofcom’s proposals remains open until October 2026. After the consultation closes, Ofcom expects to publish its final code during 2027. It will then require parliamentary approval before becoming enforceable.
In the meantime, consumer groups are continuing to call for faster action, arguing that advances in artificial intelligence are making online scams more convincing and more difficult to detect.
