The UK’s communications regulator Ofcom has unveiled new proposals aimed at forcing major online platforms to crack down on fraudulent advertising, while also expanding broader online safety obligations under the UK’s Online Safety Act.
Under the draft rules published on July 10, 2026, social media companies and search platforms would, for the first time, face a legal duty to prevent scam advertisements appearing on their services.
Firms that fail to comply could face fines of up to £18 million (€21.1 million) or 10 per cent of their global annual revenue, whichever is higher.
Platforms would be expected to ban repeat offenders, verify advertisers claiming to represent legitimate businesses, ensure financial advertisers are authorised by the Financial Conduct Authority, strengthen account security to prevent hijacking and test artificial intelligence (AI)-powered advertising tools against misuse by fraudsters.
The regulator also wants tech companies to create dedicated reporting channels for law enforcement agencies so fraudulent adverts can be removed more quickly.
Ofcom said more than half of UK adults have encountered potentially fraudulent online advertisements, while victims lose an estimated £200 million (€234.7 million) annually to such scams.
“For too long, victims have been exposed to scam ads online with tech giants simply not doing enough,” said Oliver Griffiths, Ofcom’s online safety group director.
He urged platforms not to “drag their heels”, adding they could begin implementing improvements before the rules become legally binding.
The anti-fraud proposals form part of a broader package expanding the Online Safety Act’s requirements for the UK’s largest online platforms, including services such as Facebook, TikTok and Snapchat.
The proposals are likely to revive debate over the expanding scope of Britain’s Online Safety Act. Critics have warned that broader duties imposed on large platforms risk increasing compliance costs, encouraging over-removal of lawful content.
Consumer advocates, meanwhile, argue the measures are a case of “too little, too late”.
Consumer finance expert Martin Lewis criticised both the British Government and regulators for the slow pace of implementation.
“It is definitely far too late, and the jury is out on whether it’s too little. For too long advertising online has been a Wild West. The only way for people to be safe right now is to assume every ad is a scam unless you can manifestly prove otherwise. It’s a terrible state of affairs,” Lewis said.
