Ofcom has proposed new measures requiring platforms like YouTube, Instagram and TikTok to combat fraudulent ads, following a widespread issue affecting over half of UK adults.

The draft legislation could impose fines of up to £18m on non-compliant firms or 10% of global turnover – whichever is greater. The regulator argues tech giants have acted too slowly against fraudsters and expects robust action from these platforms.

Ofcom defines scam ads as those misleading viewers, which may include bans on scammers and measures to prevent impersonation of businesses. The proposed rules also target Category 1 services under the Online Safety Act, such as Facebook, Instagram, TikTok and YouTube, with stricter transparency and accountability requirements for dealing with fraudulent content.

While industry and consumer groups welcome these moves, concerns remain over implementation timelines and potential loopholes in AI-generated scams that continue to evolve.