Social media sites may need to stop paid-for scam ads

It comes as the government launches a consultation as part of a wider overhaul of how online advertising is regulated in the UK. This will include proposals to improve transparency and accountability, and tackle harmful, fraudulent and misleading adverts. 

The new legal duty added to the Online Safety Bill will require the largest and most popular social media platforms and search engines to prevent paid-for fraudulent adverts appearing on their services. 

Responding to this announcement, Martin Lewis - founder of MoneySavingExpert.com and the Money Mental Health Policy, whose face is among the most used by scammers in the UK - said: “We are amidst an epidemic of scam adverts. 

Scams don’t just destroy people’s finances - they hit their self-esteem, mental health and even leave some considering taking their own lives. The government is now accepting the principle that scam adverts need to be included, and that firms who are paid to publish adverts need to be responsible for them, is a crucial first step.”

Mark Steward, executive director of enforcement and market oversight at the Financial Conduct Authority, added: “We welcome that the Online Safety Bill will now require the largest platforms to tackle fraudulent advertising. 

“We have been clear about the need for legislation and appreciate the government’s positive engagement on this. We look forward to working closely with the government and regulatory partners as they finalise and implement the details of the draft bill.” 

Under the current draft of the Online Safety Bill, search engines and platforms that host user-generated content, video sharing or live streaming will be duty bound to protect users of their services from fraud committed by others. This would include schemes such as catfishing and fake stock market tips. 

The new duty will bring fraudulent paid-for adverts on social media search engines into its scope. This will mean these companies will need to put in place proportionate systems and processes to prevent the publication or hosting of fraudulent advertising on their services.

Regulator Ofcom will set out further details on what platforms will need to do to fulfil their duty in codes of practice. This would include making firms scan for scam adverts before they are uploaded to their systems, as well as measures such as checking the identity of those who wish to publish advertisements. 

The regulator will also oversee whether companies have adequate measures in place to fulfil the duty, but will not assess individual pieces of content. It will, however, have the power to hold companies to account by blocking their services in the UK or issuing heavy fines of up £18m or 10% of annual turnover.