Scam ads: Ofcom tells big tech to crack down under new proposals

More than half of UK adults have encountered potentially fraudulent ads online, and a third see them often, according to Ofcom — which on Friday published draft measures forcing platforms like YouTube, Instagram and TikTok to take action. The regulator said tech giants must ban those who post scams, prevent them from creating new accounts and stop impersonations of real businesses, or face fines of up to £18m or 10% of global turnover. “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 Ofcom online safety director Oliver Griffiths. “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 proposed rules, designed to tackle paid-for false advertising that tricks people into parting with cash, come as fraudulent ads have become a familiar part of everyday life online. On 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 over a series of ads on X containing fake AI-generated images of Reform leader Nigel Farage fighting Bank of England governor Andrew Bailey. Under the Online Safety Act, platforms face additional requirements if they are categorised as Category 1, 2A or 2B. Ofcom has now published its register of categorised services — including Category 1 platforms it says should face the toughest duties, such as removing fraudulent ads quickly. Those platforms are Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. Griffiths added: “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.” While Ofcom has faced calls to act, its powers remain partly bound up with rules for categorised services that have not yet been enforced.