Major technology companies could soon be legally required to do far more to stop fraudulent adverts appearing on their platforms under new proposals unveiled by Ofcom. The communications regulator has set out draft measures that would force online services to identify, remove and prevent scam advertisements that trick users into handing over money or personal information.

The proposals form part of the UK's Online Safety Act and would place greater responsibility on platforms to protect users from increasingly sophisticated fraudsters. Companies would be expected to assess the risks posed by scam adverts, introduce effective systems to detect and remove them, and respond swiftly when harmful content is reported. Businesses that fail to comply could face enforcement action, including fines of up to 10% of their global annual turnover.

Online scams have become one of the fastest-growing forms of fraud in the UK, with criminals frequently using fake investment opportunities, counterfeit products, celebrity endorsements and phishing adverts to target victims. Ofcom says the new rules are designed to make it significantly harder for scammers to exploit popular online platforms while ensuring technology firms take a more proactive role in protecting users. The regulator is now consulting on the proposals before publishing its final guidance later this year.