Ofcom proposes 34 requirements to curb fraudulent ads on tech platforms

The proposal shifts the burden of proof from consumers to platforms, requiring proactive vetting of paid promotional content rather than reactive takedowns. For the ad tech ecosystem, this necessitates the development of more sophisticated verification APIs between social platforms and financial regulators to prevent automated 'scam-at-scale' campaigns. By aligning with Australian models that already enforce ASIC-check rejections for financial ads, the UK is pushing for a standardized global compliance threshold for big tech. Industry players should watch for the October 2 concluding date of the consultation, which will signal the start of mandatory implementation for major search and social hubs.

The move follows a record-breaking year for financial crime in the UK. According to UK Finance reporting from June 2026, the country lost £221.5 million to investment scams in 2025, a 40% year-on-year increase. This surge is attributed largely to criminals using artificial intelligence to generate sophisticated deepfake content and high-volume phishing layouts. Per the City of London Police in April 2026, investment fraud now results in an average loss of £1,675 every minute, often through professional-looking social media ads featuring cloned branding of legitimate firms.

Australia’s Scams Prevention Framework Act 2025, which Ofcom’s proposal explicitly references, has already set a precedent for this regulatory shift. In March 2026, a Reuters experiment demonstrated the disparity between the two markets, finding that Meta’s platforms successfully blocked illegal financial ads in Australia via mandatory ASIC verification while allowing similar ads to go live in the UK. Per Netcraft in June 2026, the Australian framework enforces six governance principles—including specific "Detect" and "Disrupt" obligations—that hold digital platforms liable for consumer reimbursement if reasonable preventative controls are found lacking.

Regulatory pressure is mounting globally as tech trade groups like TechUK argue that platforms already remove millions of scam ads daily before they ever reach a human user. However, according to Ofcom’s own research from July 2026, 51% of online adults in the UK still report encountering potentially fraudulent advertisements. This has led the FCA to demand more proactive prevention mechanisms, specifically targeting 'finfluencers' and AI-enabled fraudulent accounts that bypass traditional moderation tools.