Ofcom's scam-ad code puts Big Tech on the hook for £200m fraud
Updated: Sep 1
Ofcom has proposed a Fraudulent Advertising Code under the Online Safety Act — around 40 measures forcing large platforms to verify financial advertisers, ban scam accounts and publish ad libraries, backed by fines up to £18m or 10% of global turnover.
What Ofcom proposed
On 10 July 2026, Ofcom published a consultation on a draft Fraudulent Advertising Code of Practice, targeting the largest social media and search platforms — so-called Category 1 and 2A services. The consultation runs until 2 October 2026.
The trigger is the scale of harm: Ofcom estimates UK victims lose more than £200m a year to advertising-related scams, set against roughly £40bn of annual UK digital ad spend. The nearly 40 measures include banning accounts that post fraudulent ads, verifying that financial-services advertisers hold FCA permission, and operating searchable public ad libraries.
Why this matters beyond the platforms
On paper this is a platform-duty regime. In practice it reshapes the plumbing every advertiser uses. Mandatory verification of financial advertisers, account-security duties and ad libraries will change how quickly and cheaply anyone can get an ad live.
For legitimate brands there's an upside and a cost. The upside: a cleaner ecosystem where fraudsters impersonating your brand are harder to launch and faster to remove. The cost: more onboarding friction, more identity checks, and — for regulated sectors — proof of authorisation before you can spend.
The enforcement teeth are real
Once the codes are approved by Parliament, companies that fall short face enforcement including fines of up to £18m or 10% of global revenue, whichever is greater. That is Online Safety Act-level firepower, aimed squarely at the platforms that carry your ads.
What UK businesses should do now
If you advertise financial products, get your FCA permissions and verification documentation in order before it becomes a gate. Every brand should tighten its anti-impersonation playbook — trademarked assets, verified accounts, and a fast route to report scam ads using your name. And respond to the consultation if the rules will affect how you buy media.
Quick FAQ
What is Ofcom's Fraudulent Advertising Code?
A draft code under the Online Safety Act, published 10 July 2026, requiring large platforms to prevent, detect and remove fraudulent ads through around 40 measures. Consultation closes 2 October 2026.
How much do scam ads cost UK consumers?
Ofcom estimates more than £200m is lost by UK victims to these scams each year, based on its economic analysis.
What are the penalties?
Once in force, non-compliant platforms could face fines of up to £18m or 10% of global turnover, whichever is greater.
Fraud that wears your brand's face is one of the most corrosive things that can happen to trust. Ofcom's code won't remove the friction — verifying financial advertisers and running ad libraries will make launching ads a little harder for everyone. But a marketplace where scammers can't cheaply impersonate you is worth the extra step.
— Dimitro Cohen, Technology & Ad-Tech Correspondent at Marketing Minute
The Online Safety Act is moving from principle to practice. Verification, ad libraries and platform accountability are coming — and the brands that prepare their credentials now will move fastest when the gates go up.
Has your brand ever been impersonated in a scam ad? How did you handle it? Share your experience.
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
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Written by Dimitro Cohen, Technology & Ad-Tech Correspondent at Marketing Minute
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