Ofcom has published draft proposals that would require some of the United Kingdom's largest online platforms to take stronger action against fraudulent advertisements. The proposed rules form part of the implementation of the Online Safety Act and would apply to major social media services and search platforms that meet government-defined criteria. According to Ofcom, the measures are intended to strengthen protections against online fraud and increase platform responsibility for paid advertising.

The proposed fraudulent advertising code introduces nearly 40 measures aimed at preventing scam advertisements before they reach users. The draft includes requirements for platforms to remove accounts responsible for scam advertising, prevent repeat offenders from creating new accounts, verify advertisers claiming to represent legitimate businesses, confirm that advertisers promoting banking or investment services are legally authorized, strengthen account security protections, reduce misuse of AI advertising tools, and establish dedicated reporting channels for trusted organizations such as law enforcement.

Ofcom also said it wants platforms to use proactive technology to identify and block fraudulent advertisements before publication. A separate consultation on additional proposals covering these technologies is planned for the autumn. Feedback on the current consultation will be accepted until October 2, 2026, after which the regulator will review responses before publishing final decisions next year. Once approved by Parliament, the codes would become legally enforceable, with organizations that fail to meet their obligations facing enforcement action that could include fines of up to £18 million or 10% of global revenue, whichever amount is greater.

The regulator stated that online fraud continues to affect large numbers of people across the United Kingdom. It cited findings showing that 51% of adults have encountered potentially fraudulent online advertisements, while 36% reported seeing them frequently. Ofcom also estimated that victims lose more than £200 million each year to these scams. The proposals are part of a broader effort involving law enforcement, businesses, and consumer organizations to address fraud.

Alongside the advertising proposals, Ofcom published additional draft requirements for Category 1 online platforms under the Online Safety Act. These measures would strengthen protections for journalism and content considered important to democratic discussion, give adult users greater control over the content appearing in their feeds, introduce options to manage interactions with unverified accounts, simplify complaints processes, and require greater transparency through the publication of summaries covering illegal content and child safety risk assessments.

📊 What This Means (Our Analysis)

The proposals move beyond encouraging voluntary action by setting out detailed expectations for how major online platforms should prevent fraudulent advertising and strengthen user protections. By combining technical safeguards, identity verification, reporting mechanisms, and accountability measures, the draft code outlines a structured approach to reducing fraud across widely used digital services.

The broader package also illustrates how platform accountability is expanding beyond illegal content alone. The proposed requirements place equal emphasis on transparency, user control, and operational responsibility, creating a more comprehensive framework for online safety while reinforcing expectations that platforms actively manage risks rather than simply respond after harm occurs.

📌 Our Take: The proposed framework signals a broader shift toward stronger platform accountability for protecting users across digital services.