Regulatory body Ofcom has called upon Big Tech firms to tackle scam ads on their platforms.
The proposal, published today (10 July) will apply to some of the UK’s most widely used sites and apps, including social media and search platforms.
Ofcom’s new plans will mean Big Tech will be legally required to put “robust measures” into place to address scam advertising.
Measures featured in the plans include banning those who post scam ads and preventing them from creating new accounts, intercepting imposters who pretend to represent legitimate businesses and foiling financial fraudsters.
Other plans include stepping up security safeguards and combatting criminals who “exploit” AI adverts.
Related Story
Oliver Griffiths, Ofcom’s online safety group director, said: “For too long, victims have been exposed to scam ads online with tech giants simply not doing enough to combat the fraudsters using their platforms.
“Today we’ve set out nearly 40 practical, protective measures for companies to adopt. We expect firms to take robust action to stamp out scam ads and boot out the bad actors behind them to safeguard their users.”
According to the watchdog, more than £40 billion a year is spent on digital advertising in the UK but tech firms have not done enough to protect consumers from cybercriminals.
Research from the body highlighted that 51 per cent of UK adults have encountered potentially fraudulent ads online and 36 per cent reported seeing them frequently. Ofcom highlighted that a estimated £200 million is lost by victims to these scams on average each year.
Steve Chester, director of media at ISBA said: “We know that fraud is the most prevalent crime in the UK. With digital advertising so essential to advertisers’ marketing mix, proportionate regulation of tech platforms to help tackle the problem is the right thing to do. We hope that Ofcom’s proposed measures will be swiftly considered and, wherever possible, adopted.
“It’s also welcome to see Ofcom acting to give users more control over the types of content they see. User and brand safety are an absolute priority for advertisers, who want a healthier online environment. The clear expectation from policymakers and regulators – and from advertisers – is for more to be done to tackle online harms.”
A consultation on the plans is open for feedback until 2 October.
Click here to sign up to Retail Gazette‘s free daily email newsletter
