UK Watchdog Orders Big Tech Crackdown on Scam Adverts

Britain’s communications regulator has announced sweeping new enforcement measures compelling major technology companies to take responsibility for fraudulent advertisements on their platforms, marking a significant expansion of the country’s online safety framework.

Ofcom published draft regulations on July 10, 2026, that would impose a direct legal obligation on social media networks and search engines to actively prevent scam adverts from reaching users, according to Brussels Signal. Companies found in violation of the new requirements could face financial penalties reaching £18 million (€21.1 million) or 10 per cent of worldwide annual turnover, whichever sum is greater.

The proposed framework requires platforms to implement multiple protective measures. Technology firms would need to permanently remove repeat offenders from their advertising systems, verify the identity of advertisers claiming affiliation with legitimate businesses, and confirm that financial service advertisers hold proper authorization from the Financial Conduct Authority. Additional requirements include strengthening account security protocols to prevent unauthorized access and subjecting artificial intelligence-based advertising systems to rigorous testing against potential exploitation by criminals.

Ofcom is also demanding that platforms establish direct reporting mechanisms for law enforcement, enabling faster removal of fraudulent content once identified by authorities.

The regulator cited research showing that over half of British adults have been exposed to potentially fraudulent online advertisements. Annual losses to victims of such scams are estimated at £200 million (€234.7 million).

Oliver Griffiths, Ofcom’s online safety group director, stated that victims have faced scam advertising exposure for too long while technology giants failed to take adequate action. He called on platforms to begin implementing protective measures immediately rather than waiting for the rules to take legal effect.

The anti-fraud measures represent one component of a larger regulatory package extending the reach of Britain’s Online Safety Act across major platforms including Facebook, TikTok and Snapchat.

The proposals are expected to reignite controversy surrounding the scope of the Online Safety Act. Critics have raised concerns that expanded compliance obligations for large platforms will drive up operational costs and potentially encourage excessive removal of legitimate content as companies adopt overly cautious moderation policies.

Consumer protection advocates, however, argue the regulatory response remains insufficient and belated. Consumer finance expert Martin Lewis criticized both government officials and regulatory bodies for the prolonged delay in addressing the problem, describing online advertising as having operated like a lawless frontier. Lewis advised consumers to treat every advertisement as potentially fraudulent unless they can definitively verify its legitimacy, calling the current situation unacceptable.

With information from Brussels Signal