More than half of UK adults have encountered potentially fraudulent ads online, and under new Ofcom proposals, the tech platforms hosting them could face fines of up to £18m or 10% of global turnover.
The regulator has published draft measures that would force YouTube, Instagram, TikTok and other major services to take action against scam adverts — including banning repeat offenders and blocking impersonators. The move is part of the Online Safety Act, which imposes extra duties on categorised services.
“Ofcom proposes forcing tech giants to tackle scam ads or face fines up to £18m.”
“For too long, victims have been exposed to scam ads online with tech giants simply not doing enough to combat the fraudsters using their platforms,” said Oliver Griffiths, Ofcom’s online safety director. “We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users.”
The draft rules target content that misleads or tricks viewers into parting with cash. Platforms must ban users who post scams, prevent them from creating new accounts, and remove reported content swiftly. Those that fail to meet their duties “can expect to face serious consequences”, Griffiths warned.
Ofcom has also published its register of categorised services — those facing the toughest additional requirements due to their size and popularity. The list includes Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. Apple’s dedicated app store is also being monitored.
The problem has become a familiar part of everyday life online. Last Friday, the UK’s advertising watchdog warned that claims in adverts for portable air conditioning units on Facebook and YouTube were “too good to be true”. In early June, concerns were raised about adverts on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey.
Ofcom has faced calls to act, but some of its powers remain tied up with rules for categorised services that have not yet been enforced. The regulator now expects firms to start making improvements — and says those that drag their heels will pay the price.
