Big tech platforms will have to ban scam ads under UK plans to tackle fraud

Range of potential measures announced by Ofcom include reducing risk of accounts being hijacked for scamsBig tech platforms will be required to ban scam advertisers in the UK under

By The Guardian

Big tech platforms including Facebook, Instagram, Snapchat, X and YouTube will be legally required to ban scam advertisers in the UK under new proposals from communications regulator Ofcom designed to tackle online fraud. The measures, announced today, mandate that major services block bad actors who post fraudulent ads and prevent them from creating new accounts, marking the first time big tech companies will be legally obliged to implement robust steps against scam advertising .

Ofcom’s range of potential measures includes reducing the risk of accounts being hijacked for scams, a growing tactic used by fraudsters to bypass security checks and target users with deceptive content . The regulator has published detailed proposals seeking feedback from the public and industry by 2 October, aiming to force major technology companies to take paid-for scam advertisements seriously .

Social media platforms and search engines will be held accountable for tackling scam advertising under these new laws, with firms facing fines if they fail to comply . The UK Government describes the agreement as a “world first”, having reached a deal with big name tech giants to block and remove fraudulent content from their websites .

More than half of adults have reported seeing scam ads in their feeds, highlighting the widespread nature of the problem and the urgent need for regulatory intervention . Platforms like YouTube, Instagram and TikTok will need to take specific action to deal with scam adverts, ensuring that fraudulent actors cannot easily re-enter the ecosystem after being banned .

Under the proposals, companies must prevent banned bad actors from creating new accounts, closing a loophole that has allowed scammers to repeatedly return to platforms after being identified. This approach targets the biggest services where the volume of users and the potential for financial harm are greatest.

Facebook, Instagram, Snapchat, X and YouTube are explicitly named as services that will have to block these fraudulent advertisers . The focus on preventing account re-creation is critical, as many scams rely on the ability to reset and restart operations under a new identity once an old one is flagged.

The regulatory framework builds on existing accountability but introduces a stricter, legally enforceable requirement for tech firms to “stamp out” scam adverts . Ofcom emphasises that firms are already accountable for certain aspects of user safety, but these new proposals will make the obligation to address scam advertising a formal legal duty .

This shift means that failure to act could result in significant financial penalties, providing a strong incentive for platforms to invest in better detection and prevention systems. Critics and observers have raised questions about the practical implementation of such rules, particularly regarding jurisdiction and enforcement.

Some have asked which laws platforms should follow when operating globally, noting that laws in countries like France, Australia or the Philippines might contradict UK regulations . Others have questioned who would issue fines and how cross-border enforcement would work, suggesting that the complexity of international tech regulation remains a challenge even with clear domestic mandates .

Despite these concerns, the proposals represent a significant step in the UK’s effort to protect consumers from online fraud. By targeting the biggest platforms, the government aims to create a safer digital environment where users are less likely to encounter deceptive ads promising fake investments, counterfeit goods or fraudulent job offers.

The emphasis on blocking bad actors and preventing account re-creation addresses the root of the problem rather than just the symptoms, offering a more sustainable solution to the growing threat of scam advertising. Ofcom’s call for feedback by 2 October invites stakeholders to shape the final rules, ensuring that the measures are both effective and feasible for the industry to implement.

The regulator will consider input from tech companies, consumer groups and the public before finalising the requirements, which could lead to refinements in how platforms detect and remove scam content. This collaborative approach aims to balance user safety with the operational realities of running large-scale digital services.

The announcement comes amid rising concerns about the impact of online fraud on individuals and the economy. Scam ads have become a primary tool for fraudsters to reach potential victims, often using sophisticated techniques to mimic legitimate businesses or trusted figures.

By forcing platforms to take stronger action, the UK hopes to reduce the success rate of these scams and deter bad actors from using digital advertising as a vehicle for fraud. Tech firms must now prepare to meet these new legal standards, which will require significant investment in security infrastructure, monitoring tools and staff training.

The cost of compliance may be high, but the potential cost of non-compliance, including fines and reputational damage, is likely to be far greater. As the UK moves forward with these proposals, other countries may look to the model as a benchmark for their own efforts to combat online fraud in the digital age.

Open article on Cheshire Today