UK Regulator Ofcom Targets Scam Ads With Tough New Rules for Big Tech
Published
Key Takeaways
- Ofcom Scam Ad Rules: Ofcom proposed stricter measures requiring Big Tech platforms to tackle fraudulent advertisements.
- Online Safety Act: New rules would make major platforms responsible for preventing and removing scam ads.
- Platform Accountability: Companies may face fines while improving advertiser checks, reporting, and fraud prevention systems.
The UK's communications regulator, Ofcom, has unveiled a proposed set of measures that would require major online platforms to take stronger action against fraudulent advertisements. Announced on July 10, 2026, the draft rules are part of the implementation of the Online Safety Act and target some of the UK's largest social media and search services.
If adopted, the proposals would make large technology companies legally responsible for introducing systems to detect, prevent, and remove paid scam advertisements that appear on their platforms. The measures are currently open for public consultation before final rules are finalized next year.
Ofcom Outlines Nearly 40 Measures to Combat Fraudulent Advertising
According to Ofcom, online scam adverts continue to expose consumers to financial losses and emotional harm, while digital advertising remains a major source of revenue for large technology platforms. The regulator says more than half of UK adults have encountered potentially fraudulent online ads, and victims collectively lose more than £200 million annually to these scams.
The proposed Fraudulent Advertising Code introduces nearly 40 measures that Category 1 online services would be expected to implement. These include:
- Banning accounts that publish scam advertisements and preventing repeat offenders from creating new accounts.
- Verifying advertisers claiming to represent legitimate businesses.
- Confirming that advertisers promoting banking or investment products are authorized by the UK's Financial Conduct Authority (FCA).
- Strengthening protections against account hijacking.
- Testing AI-powered advertising tools to reduce the risk of scammers generating fraudulent content.
- Creating dedicated reporting channels for trusted organizations, including law enforcement, so scam advertisements can be removed quickly.
Ofcom also said it plans a separate consultation later this year on using proactive detection technology to identify fraudulent advertisements before they reach users.
Wider Online Safety Requirements Also Proposed
Alongside the anti-fraud measures, Ofcom published additional draft rules for major online platforms under the Online Safety Act. These proposals would require Category 1 services to improve transparency, make complaint processes easier to use, protect journalistic and democratic content, and provide adults with more controls over what appears in their feeds, including options to filter certain types of harmful or unverified content.
The consultation on the scam advertising rules remains open until October 2, 2026. After reviewing feedback, Ofcom plans to publish its final decisions in 2027. Once approved by Parliament, companies that fail to comply could face enforcement action, including fines of up to £18 million or 10% of global annual revenue, whichever is higher.
The announcement is verified through Ofcom's official consultation. Although the proposed rules are not yet in force, the regulator said platforms do not need to wait for the legal requirements before improving their defenses against scam advertising. For the broader online safety landscape, the proposals signal a continued expansion of regulatory oversight aimed at reducing fraud and increasing accountability for the largest online platforms.
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