Major technology platforms operating in the United Kingdom will be required to implement stricter measures to ban scam advertisers under new regulatory proposals designed to curb the rising tide of online fraud. The Office of Communications (Ofcom), the UK’s communications regulator, has set out a draft code of practice that mandates that services like Facebook, Instagram, Snapchat, X, and YouTube take proactive steps to identify, block, and remove fraudulent advertisements from their platforms.
The proposed regulations, which fall under the government’s wider Online Safety Act, aim to force companies to prevent bad actors from creating new accounts once they have been identified as sources of financial scams. According to official statements released by Ofcom, the platforms must also implement robust verification processes to ensure that advertisers are who they claim to be, effectively ending the anonymity that often allows scammers to operate across social media and search services.
Regulatory Requirements Under the Online Safety Act
The draft code of practice is a direct response to the legislative framework established by the Online Safety Act 2023. Under these new rules, the largest online services are classified as “Category 1” platforms, meaning they face the most stringent requirements regarding the safety of their users. Ofcom has specified that these platforms must not only remove fraudulent content when it is reported but must also actively prevent the proliferation of scam advertisements through improved automated detection systems.
A primary focus of the new mandate is the prevention of “account hijacking,” where legitimate user accounts are compromised and subsequently used to disseminate fraudulent links or investment schemes. Ofcom’s proposal requires platforms to implement multi-factor authentication and other security protocols to reduce the risk of unauthorized access. Failure to comply with these regulations could result in significant financial penalties, with Ofcom holding the power to issue fines of substantial amounts or a portion of a company’s qualifying worldwide revenue, whichever is greater.
Why Platforms Are Being Targeted
Fraud remains one of the most prevalent crimes in the United Kingdom, with a significant percentage of incidents originating from online sources. By targeting the largest platforms, the regulator aims to disrupt the infrastructure that allows scammers to reach potential victims simultaneously. The draft code explicitly mentions the need for platforms to verify the identity of high-risk advertisers, particularly those promoting financial products, which have been a frequent vector for investment fraud.
This initiative follows a series of high-profile reports regarding the ease with which fraudulent ads for cryptocurrency schemes and “get-rich-quick” platforms have appeared on mainstream social media. By requiring platforms to block bad actors and prevent the creation of “burner” accounts, the regulator expects to increase the difficulty and cost for scammers to maintain a presence on major services. The consultation period for these draft measures is currently open, with the regulator seeking input from industry stakeholders, civil society groups, and the public before finalizing the code.
Next Steps for Implementation
The proposed measures are currently in the consultation phase, which is scheduled to run until early 2025. Following the conclusion of this period, Ofcom will review the feedback received and publish a final version of the code of practice. Once the code is finalized and approved by the UK Parliament, platforms will be expected to make the necessary technical and policy adjustments to remain in compliance with the law.
Users and stakeholders who wish to view the full details of the proposals or submit a response to the consultation can do so via the official Ofcom portal. As the regulatory landscape continues to evolve, the impact of these rules on the daily operations of major tech firms will be a key area of focus for consumer protection advocates and digital policy experts throughout the coming year.