We must firmly tackle the criminal abuse of online advertising to promote scams, distribute malware and launch phishing attacks, and internet providers and social media platforms have a role to play in driving out fraudulent activity.
The Online Safety Act lists fraud as a priority offence, requiring internet platforms to minimise its prevalence on their platforms and swiftly remove content when it appears. This includes fraudulent investments using deepfakes.
The most significant requirements apply to Category 1 services – those with over seven million average monthly active users and the provision for them to share their content with each other. The Act also requires those Category 1 services to have transparent routes for users to complain about fraud, and swift procedures to address those complaints. The independent regulator Ofcom have strong powers to ensure compliance.
I am concerned that Ofcom will not consult on the relevant code of practice for fraudulent advertising until summer this year. As a result, the fraudulent advertising duties will come into force in 2027.
Ministers should monitor and evaluate the effectiveness of existing regulations and enforcement powers in addressing harms in digital marketplaces, including fraud and I will be calling on the Government to take further measures if they are needed to protect consumers.