Ofcom proposes rules forcing Big Tech to tackle scam ads

UK communications regulator Ofcom announced proposed fraud-fighting rules on Thursday that would hold major technology platforms accountable for tackling scam advertisements, setting out 40 measures requiring companies like YouTube, Instagram, and TikTok to take action against fraudulent content or face fines of up to £18 million or 10% of global revenue. ofcom.org.uk bbc.co.uk independent.co.uk

What the Proposals Require

The consultation on a fraudulent advertising code of practice targets content that advertises products or services in a way that misleads or tricks users. Under the proposed rules, tech companies must ban users who post scam ads and prevent perpetrators from creating new accounts. Platforms will also be required to intercept imposters and improve their fraud detection capabilities. bbc.com ofcom.org.uk telecompaper.com

The measures form part of Ofcom’s implementation of the Online Safety Act 2023, which gave the regulator responsibility for overseeing how online services tackle fraud. The fraudulent advertising duties fall under the act’s “phase three” provisions, which apply additional obligations to larger categorised services regarding paid-for fraudulent advertising. ofcom.org.uk

A Long Road to Implementation

The proposals arrive after years of development. The UK government first added a duty to prevent paid-for fraudulent adverts to the then-Online Safety Bill in March 2022, with Ofcom designated as the enforcer. A December 2025 update from Ofcom indicated the consultation would take place in 2026, with the rules not expected to come into force until 2027. hsfkramer.com linkedin.com

Ofcom’s own research has found that around nine in ten online adults in the UK have come across content they suspected to be a scam or fraud. Dame Melanie Dawes, Ofcom’s chief executive, has previously described scams as “becoming ever more sophisticated,” with their impact on victims “often going way beyond financial loss.” saferinternet.org.uk ofcom.org.uk

Broader Regulatory Context

The announcement comes as Ofcom ramps up its online safety enforcement priorities for 2026/27. The regulator has already required online services to assess fraud risks and take steps to protect users from illegal content, including removing it when identified. The new fraudulent advertising code would add specific obligations around paid-for scam content — closing what campaigners have long identified as a gap in platform accountability. dentons.com ofcom.org.uk

The consultation is now open, inviting responses from industry, consumer groups, and the public before final rules are set. ofcom.org.uk