TL;DR: Ofcom published draft rules in July 2026 for a fraudulent advertising code under the Online Safety Act, with 40 proposed measures for platforms like Facebook, Google and YouTube: banning scam advertisers, verifying who sets up ad accounts, requiring banking and investment advertisers to be FCA-authorised, testing AI ad tools and fast-tracking police reports. Fines could reach £18m or 10% of global revenue. The consultation closed on October 2; final rules are expected next year, so protection won’t arrive until 2027 at the earliest.
Why this matters
UK Finance says 66% of bank transfer fraud in 2025 started online, and investment fraud cases rose 26%, as Which? reported. Fake celebrity investment ads, copycat retailer ads and fake “apps” in sponsored posts are a big part of that.
The proposed measures
Among Ofcom’s 40 draft measures:
- ban fraudsters who post scam ads and stop them opening new accounts;
- verify identity of people setting up advertising accounts, to stop impersonation of real businesses;
- require FCA authorisation for anyone advertising banking or investment services;
- strengthen security to reduce account hijacking;
- test AI ad-making tools for misuse;
- create a dedicated channel for law enforcement to flag scam ads for swift removal.
The teeth
Firms that fail to comply could face fines of up to £18m or 10% of global revenue, whichever is greater. Meta is challenging the proposed fines in court, Which? reports.
Timeline
- Consultation: ran until 2 October 2026.
- Final rules: expected next year.
- Which? says consumers would be unprotected until 2027 at the earliest, and urged Ofcom to move fast. Ofcom says platforms don’t have to wait.
Which?’s Rocio Concha called the proposals “a significant step” towards holding firms accountable.
Until then: protect yourself
- Treat investment ads with celebrities as fake by default (deepfake investment scams).
- Check any finance firm on the FCA register (how).
- Don’t install “apps” from ads (fake app ads).
- Report scam ads using the three dots on the ad.
A related rule is coming for networks: see Ofcom’s plan to block scam texts. And check your own exposure with a free email exposure check.
Frequently Asked Questions
What is Ofcom’s fraudulent advertising code?
Draft rules under the Online Safety Act requiring large platforms to tackle scam ads, with 40 proposed measures.
How big are the fines?
Up to £18m or 10% of global revenue, whichever is greater.
When will the rules apply?
The consultation closed on 2 October 2026 and final rules are expected next year. Which? says protection won’t arrive until 2027 at the earliest.
Will investment advertisers need FCA authorisation?
That’s one of the proposed measures for banking and investment ads.
Sources
- Which?: Big tech must tackle scam ads or face fines (Jul 14, 2026)
- techUK: Ofcom publishes draft fraudulent advertising codes of practice