Big tech firms to be forced to tackle some scam ads as Ofcom finally launches consultation on new rules – but Martin Lewis warns far more is needed
Long-overdue rules designed to hold online platforms legally responsible for paid scam adverts they publish have finally been put forward by regulator Ofcom today (Friday 10 July). Frustratingly, it'll still be at least a year before they're fully in force – though the regulator has warned big tech firms not to "drag their heels" and to start making improvements now.
Just weeks ago, MoneySavingExpert.com (MSE) founder Martin Lewis wrote to Prime Minister Keir Starmer, asking: 'Why have you done nothing to tackle scam ads?'. In the letter, Martin called on the Government to instruct Ofcom to speed up its work and start taking action against platforms that host scams as soon as possible.
Ofcom has now proposed nearly 40 new measures as part of its draft fraudulent advertising code, which will set out how social media and other online platforms can better protect their users from falling victim to scam ads – as nearly £200 million is lost by victims to these types of ads each year.
These proposals will be consulted on until 2 October 2026. Ofcom says it will then issue a final statement "by mid-2027 at the latest".
Martin Lewis: 'It's too late, but hopefully not too little'
It is definitely far too late, and the jury is out on whether it’s too little. For too long advertising online has been a Wild West. The only way for people to be safe right now is to assume every ad is a scam unless you can manifestly prove otherwise. It's a terrible state of affairs.
The criminals behind scams can act with impunity. Big tech turns a blind eye as it seemingly makes billions from those scammers, carefree about the financial lives they destroy and the serious consequences for people's mental health. This needs to stop.
It isn't new. Back in 2018 I sued Facebook. Then we lobbied to get scam ads in the Online Safety Act. That was accepted in 2022. It became law in 2023, but we were told we'd need to wait until 2025 for the consultation to be published.
Delay after delay means it's only launching now, but implementation – even if it doesn't get shredded by big tech lawyers – is at least a year away.
And these rules only cover the very largest social media platforms and search services. That leaves gaping holes for the scammers to exploit, from apps and games to content-recommendation ads at the bottom of millions of websites.
Yet while I'm frustrated at the political sloth and limitations, this is still a step forward. Most of what Ofcom has put out today looks good at a cursory glance, and I hope it will lead to improvements. Yet far more is needed, including expanding the range of firms it can police.
What major online platforms would have to do if the proposals go ahead
The proposed new rules would only apply to "the most widely used online services in the UK". This includes search engines Google and Bing, social media platforms Facebook, Instagram, TikTok, Reddit and X, plus a handful of others including Roblox and YouTube. But they WON'T cover smaller sites, mobile apps or games – where scams ads also often appear.
Under the planned rules, the biggest social media platforms and search services would need to:
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Review paid ads on an ongoing basis, and "swiftly" take them down if they're fraudulent. Platforms will be required to have internal systems and processes to enable this, and will have to devote enough resources to their advertising moderation to make it possible.
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Ban known scammers and prevent them from creating new accounts. Sites will be responsible for verifying the identities of users setting up new advertising accounts to ensure they're who they say they are. They will also need to improve security safeguards to help prevent legitimate accounts from being hijacked.
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Make reporting scam ads easier. Ofcom says firms should make their reporting processes "easy to find, access and use". It added that firms should set up dedicated channels for trusted bodies such as law enforcement to flag fraudulent ads.
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Ensure anyone who posts an ad for banking or investment services is legally allowed to do so. This could mean, for example, being registered with regulator the Financial Conduct Authority.
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Establish ad libraries which are "publicly available, accurate and updated at least daily". Ofcom has also laid out specific requirements for how you should be able to search within these libraries, and what information should be featured in each entry.
Oliver Griffiths, director of Ofcom's Online Safety Group, said: "Platforms should not drag their heels – they can start making improvements for their users now. And sites and apps that fail to meet their legal duties, once in force, can expect to face serious consequences." This could include fines of up to £18 million or 10% of global revenue, whichever is greater.
We've long campaigned for more action on scams
Martin and MSE have long advocated for urgent action against scams, and particularly scam advertisements. In fact, Martin sued Facebook himself in 2018, in a landmark campaigning defamation lawsuit after 1,000s of scam adverts appeared on the social media site abusing his name or image.
The lawsuit was settled in 2019 after Facebook agreed with Martin on a major two-pronged action plan to fight the problem: that it would donate £3 million to set up a new anti-scams project and create a scam ads reporting tool supported by a dedicated team, unique to Facebook in the UK. However, we've seen little progress overall in quelling scam ads since that settlement.
Last month, Martin let loose on politicians over 10 years of scam-ad inaction, saying the following on ITV's This Morning: "I've sued. I've lobbied. I've cried at hideous cases of vulnerable people losing everything. Why has nothing been done?".
If you think you've been scammed, here's what to do
Firstly, try to stay calm. Scammers and fraudsters steal hundreds of millions of pounds each year, often using sophisticated methods – so don't beat yourself up. After that, you'll want to take these steps:
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End communication with the scammer. Do this immediately, and don't be tempted to respond to any further calls, emails or text messages – no matter how urgent they sound.
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Contact your bank so it can cancel any further payments. Either contact your bank directly or call the 159 hotline (this will connect you with your bank).
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Lost money to the scam? If you're in England, Wales or Northern Ireland, create a police report via Report Fraud. If you're in Scotland, contact Police Scotland on 101.
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Not lost money to the scam? Reporting the scam is still important even if you've not lost money, but where to report depends on whether the scam was a text, email, advertisement, website or phone call. See Report Fraud for more details.
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For further help reach out to a specialist organisation. Some of the options are Citizens Advice (England and Wales), Citizens Advice Scotland and NIdirect.
For full help, see our Help, I've been scammed! guide, plus our 20 ways to stop scams.
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