£18-million scam ad crackdown in the UK
Key Points
- Ofcom proposed nearly 40 measures targeting scam adverts on major platforms.
- Non-compliant firms face fines of up to £18 million or 10% of global revenue.
- UK victims lose over £200 million a year to online scam ads.
- 51% of UK adults have seen potentially fraudulent adverts online.
- The consultation closes on 2 October, with final decisions due in 2027.
Ofcom has proposed nearly 40 new measures requiring major online platforms to tackle scam adverts, with firms that fall short facing fines of up to £18 million or 10% of global revenue, whichever is greater.
The regulator published its draft fraudulent advertising code on Friday (10 July), which will for the first time legally require large social media and search platforms to put robust measures in place against paid-for scam advertising under the Online Safety Act.
The proposals target a problem that costs UK victims an estimated £200 million each year on average.
Ofcom research found that 51% of adults who are online have encountered potentially fraudulent adverts on social media, search services and video-sharing platforms, with 36% seeing them frequently.
More than £40 billion a year is spent on digital advertising across the UK, making up the majority of the revenue earned by the tech giants selling the ads.
The move comes after HotMinute reported on several AI-generated adverts which had flooded X (formerly Twitter), which showed Reform leader Nigel Farage on the BBC’s Question Time programme.
In one clip, he is squaring up to Bank of England Governor Andrew Bailey on the Question Time set; Bailey crumpled on the studio floor while Fiona Bruce is sat open-mouthed behind the desk.
A white play button sits over the top of these images, and the caption promises that Farage has just ‘exposed’ something the establishment doesn’t want you to see.
There are others images and adverts like this. One features Farage decking pundits, another Farage humiliating a group of bankers, and another which appears to show him fleeing off stage.
What platforms must do
- Banning advertisers who post scam ads and preventing them from creating new accounts.
- Verifying that people setting up new advertising accounts work for the businesses they claim to represent.
- Ensuring anyone advertising banking or investment services is legally allowed to do so, such as by being registered with the Financial Conduct Authority.
- Strengthening security safeguards to reduce the risk of advertising accounts being hijacked.
- Testing AI advert-making tools to reduce the risk of criminals exploiting them to create scam content.
- Creating a dedicated channel for trusted bodies such as law enforcement to flag scam ads, which must then be swiftly removed.
Ofcom also wants platforms to use proactive technology to filter out fraudulent ads at source, and will publish a separate consultation on detailed proposals in autumn 2026.
Oliver Griffiths, Ofcom’s Online Safety Group Director, said victims had been exposed to scam ads for too long while tech giants failed to act.
“We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users,” Griffiths said.
“Platforms should not drag their heels. They can start making improvements for their users now. And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences.”
Steve Smart, Executive Director for Fighting Financial Crime at the FCA, said tech firms must do more to proactively prevent scam adverts targeting UK consumers and businesses. “They don’t have to wait for these new rules and should step up now,” Smart said.
Nick Sharp, Deputy Director of the National Economic Crime Centre, said criminals were increasingly exploiting online platforms and their advertising infrastructure to reach victims, and welcomed the consultation.
