Online platforms will have to ban scam ads under UK proposals to tackle fraud | Ofcom

Major tech platforms will be required to ban fraudulent advertisers in the UK under new proposals to tackle online fraud.

Facebook, Instagram, Snapchat,

Potential changes include: reducing the risk of accounts being hijacked and turned into hosts for fraudulent purposes, ensuring that ads for banking or financial services have legal authorization, and providing a channel for law enforcement to detect fraudulent ads.

The UK’s communications regulator Ofcom has announced proposals under the next phase of implementation of the Online Safety Act (OSA), which places responsibilities on technology companies to protect users from harmful content.

Fraud ad requirements apply to major “category 1” platforms like Instagram and X, as well as Google and ChatGPT.

Oliver Griffiths, director of Ofcom’s online security group, said tech groups were not doing enough to tackle scammers on their platforms.

“We expect companies to take firm action to eliminate fraudulent ads and expose the bad actors behind them to protect their users,” he said.

Once the new measures come into force and become legally binding under the OSA, failure to enforce them could result in fines of up to 10% of the platform’s global revenue. Ofcom has called on firms to immediately improve their anti-fraud measures, but a consultation on specific steps launched on Friday will end in October and final decisions will not be made until next year.

Which consumer group? He welcomed the proposals as he accused tech firms of viewing fraudulent advertising as a “lucrative revenue stream”, but expressed concern that the measures would not be implemented until next year.

“This is deeply problematic at a time when breakthrough advances in artificial intelligence are making scams more sophisticated than ever before,” said Rocio Concha, head of policy and advocacy at Which?

Last month, the Bank of England warned the public not to fall for artificial intelligence-generated scams after deepfake videos showing Nigel Farage fighting his governor went viral. Financial expert Martin Lewis has repeatedly called on the government to tackle fraudulent ads using his image.

Ofcom has also set out draft rules for category 1 companies on the handling of journalistic content as part of the consultation. Recommendations include: ensuring that social media platforms do not arbitrarily restrict access to news content and “content of democratic importance”; giving news publishers the opportunity to state their case before content is removed, tagged or demoted; and providing an expedited complaints process for journalistic content.

The watchdog also issued recommendations for category 1 platforms to limit users’ exposure to content involving suicide, self-harm, eating disorders, hate and abuse. Ofcom said users should be given the option to reduce their exposure to this content; This may include removing or blurring content entirely. Users should also be given the option to block or mute other users and filter interactions with unverified accounts.

Ofcom also sets content rules for category 1 platforms, which explain what type of material is allowed on a service and how these terms will be applied consistently.

Category 1 platforms include: Facebook, Instagram, Pinterest, Quora, Reddit, Roblox, Snapchat, TikTok, WhatsApp, X and YouTube. Warning that classification as a category 1 service would impact its operations in the UK, Wikipedia did not make the list but was described as an “emerging category 1” platform that is not subject to any restrictions.