The Online Safety Act 2023 requires certain larger online services to have in place greater levels of transparency and accountability, empower users with more choice and control, and protect users from fraudulent advertising.
These services, known as categorised services, are some of the most widely-used online services in the UK. Ofcom is responsible for ensuring that providers of these services comply with the additional responsibilities placed upon them. Ofcom has published its proposals for what Category 1 and Category 2A services should do to tackle fraudulent advertising in line with their duties under the Act. The proposals apply to paid-for advertising content, and not user-generated content or non-sponsored search content.
Ofcom has also set out its draft fraudulent advertising code, which sets out nearly 40 new measures for how platforms should be protecting their users from scammers. Ofcom’s expectations include:
- Banning bad actors who post scam adverts and preventing perpetrators from being able to create new accounts.
- Intercepting imposters who may pretend to present legitimate business by checking that those who set up new advertising accounts work for who they claim to.
- Ensuring that anyone posting an ad for banking or investment services is legally allowed to, such as being registered with the Financial Conduct Authority.
- Improving security safeguards to reduce risk of accounts being hijacked.
- Combatting criminals who exploit AI advert-making tools to create scam content by rigorously testing them to reduce risk of misuse.
- Empowering bodies like law enforcement by setting up a dedicated channel for them to report scam ads, so that these can then be swiftly removed.
Ofcom has also said that it is interested in using proactive technology to filter out fraudulent ads at source and will introduce a separate consultation on detailed proposals in the autumn, alongside a broader package of new safety measures.
This consultation ends on 2 October and Ofcom will set out its final decisions in 2027.
