Scams aren’t just happening on random pop-up ads anymore. They are buying real estate. Right in your feed.
Ofcom, the UK’s communications regulator, is finally tired of the silence. They want tech giants to stop being passive landlords and start being bouncers. Under new proposed rules, social media platforms and search engines could be slapped with massive fines. We’re talking up to £18 million. Or 10% of their global turnover. Whichever hurts more.
“Platforms should not drag their heels”
The draft code targets the heavy hitters. Facebook, Instagram, TikTok, Pinterest. Even Reddit. These firms face a strict “one strike” policy for advertisers running scams. Currently? They often get several warnings before getting banned. That stops now. At least according to the draft.
Why wait so long? The money trails are thick. About £200 million gets siphoned off by fraudsters via UK ads every year. Two hundred million pounds. Gone.
The consultation window opens until October 2. The actual laws? Those won’t land until 2027. Yes, 2027. That means Parliament has to approve everything after final decisions are made next year. It’s a long runway for a problem that eats users for breakfast daily.
The requirements are specific. Forty measures, to be precise. Ban the scammer? Easy. Prevent them from creating a new account five minutes later? That’s the work. Platforms must also stop imposters pretending to be real shops. And they have dedicated channels set up for victims to flag the garbage.
There is an AI twist too. Artificial intelligence tools can now generate ad copy. Scammers use this to spin up lies faster than any human compliance team can read them. Ofcom wants these AI systems rigorously tested. Stop the bad guys from automating their greed.
Oliver Griffiths, the safety director at Ofcom, puts it bluntly. He says the current system allows fraudsters to exploit gaps while users bleed. He expects big action. He wants the bad actors booted out. He says the consequences for non-compliance will be “serious.”
Consumer advocates see the light, but they are wary of the clock. Rocio Concha from Which? calls the move a significant step. Finally. But she points out a glaring issue. Waiting until 2027 leaves millions unprotected while AI-driven scams get smarter, faster, and harder to spot.
Is slow regulation an accident? Or a feature?
Concha argues tech firms treat scam ads like a profitable stream of revenue. The proposals might hold them accountable eventually, but the timeline is problematic. “Implement these codes as soon as possible” is the demand. It’s not just a request. It’s a necessity.
Meanwhile, Europe is tightening the screw in a different way. The European Commission told Meta to kill some of the app’s most addictive features. Infinite scrolling? Autoplay? They want them off by default. Meta is being accused of ignoring risks to kids’ mental health. If the commission sticks its gun to Meta’s head, the fine could reach 6% of annual global revenue.
Meta denies they are the problem. They claim they’ve already done enough to protect teenagers. They have their chance to argue now. To defend themselves before the final blow.
So here we sit. Two major regulators. Two sets of rules. One giant industry that has spent two decades building walled gardens on the backs of user data. Ofcom is building the fence. Europe is pulling out the thorns. The question isn’t whether they will comply. The question is how long before the next victim clicks.
