Ofcom Wants Big Tech to Stop Scam Ads. Here's What That Means for You.
The UK's communications regulator has told the country's largest social platforms to clean up fraudulent advertising or face fines of up to 10% of their global revenue.
Key points
- More than half of UK adults have seen potentially fraudulent adverts online, according to Ofcom figures published with the draft proposals.
- Ofcom named eleven platforms, including Facebook, Instagram, TikTok, YouTube and X, as facing the toughest new requirements under the Online Safety Act.
- Companies that break the rules once they become law could be fined £18 million or 10% of global annual turnover, whichever is larger.
- Draft measures include forcing platforms to permanently ban users who post scam ads and block them from creating new accounts.
Ofcom, the UK regulator that oversees broadcasting and online services, published draft rules this week that would require major social media and video platforms to actively fight scam adverts rather than wait for complaints to trickle in.
A scam advert, to be clear, is a paid-for post designed to trick you into handing over money or personal details. Think fake investment schemes dressed up as celebrity endorsements, or imitation websites for real banks. You have probably scrolled past one this week.
Ofcom says more than half of UK adults have come across these fraudulent ads online. Over a third say they see them often. That is not a niche problem.
What would the platforms actually have to do?
Under the Online Safety Act, a law passed in 2023 to impose duties of care on internet companies, Ofcom has the power to place specific obligations on the biggest services. The draft measures published this week spell out what those obligations look like in practice.
Platforms would have to ban anyone who posts scam content and stop them opening new accounts. They would also need to act quickly when fraudulent ads are reported, taking them down fast rather than letting them sit live while a ticket works its way through a queue.
Firms that belong to what Ofcom calls Category 1, meaning the UK's largest and most popular services, face the strictest version of these duties. Ofcom has now named those services: Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. Apple's iMessage, Meta's Messenger, Threads and Wikipedia are listed as platforms Ofcom is watching as potential future additions to that top tier.
Fines for non-compliance could reach £18 million or 10% of a company's global revenue, whichever sum is higher. For a company the size of Meta or Google, 10% of global revenue is an enormous number.
Ofcom online safety director Oliver Griffiths said platforms "can start making improvements for their users now" without waiting for the rules to become final. That is a polite way of saying the regulator is already watching.
The proposals are still in draft form. They have to pass through a formal consultation before they carry legal force.
If you use any of the named platforms, the practical advice is straightforward. Be sceptical of any advert that promises unusually high investment returns, asks for payment in gift cards, or urgently demands personal details. Report suspicious ads using the platform's built-in tools. That reporting data is now something regulators will expect platforms to act on quickly.
Scam ads are ultimately a social-engineering problem, meaning criminals use psychological tricks rather than technical hacks to steal money. No amount of regulation fully substitutes for a moment's pause before you click.
