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Ofcom has published its long-awaited draft Fraudulent Advertising Codes of Practice, setting out how Category 1 and Category 2A services should tackle paid-for scam adverts under the Online Safety Act. The consultation is open for responses until 2 October 2026.

Consultation open until 2 October 2026 

Scope 

The draft code applies specifically to paid-for advertising content on the largest platforms - it does not extend to user-generated content or non-sponsored search results. This is a narrower scope than some of the wider online safety duties. 

The scale of the issue 

Ofcom's own figures frame the rationale for the code: 

• Digital advertising in the UK is worth more than £40bn a year, forming the bulk of tech firms' ad revenue. 
• 51% of online adults say they've encountered a potentially fraudulent ad, with 36% seeing them frequently. 
• Ofcom estimates £200m+ a year is lost by UK victims to these scams. 

What the draft code proposes 

Nearly 40 measures are set out, with Ofcom's key expectations including: 

• Banning bad actors and blocking them from re-registering new accounts. 
• Verifying advertisers actually represent the businesses they claim to. 
• Checking that anyone advertising banking or investment services is properly authorised (e.g. FCA-registered). 
• Strengthening account security to reduce hijacking risk. 
• Rigorously testing AI ad-creation tools to reduce misuse by fraudsters. 
• A dedicated, fast-track reporting channel for trusted flaggers such as law enforcement. 

Timing and enforcement 

Ofcom has been explicit that platforms don't need to wait for the Codes to be approved before acting — it's encouraging the implementation of the codes now. Once the Codes are approved by Parliament and in force, non-compliant firms could face fines of up to £18m or 10% of global revenue, whichever is greater. 

A further consultation on proactive technology to filter fraudulent ads at source is expected in autumn 2026, with final decisions due in 2027. 

What regulators and law enforcement are saying 

Ofcom's Oliver Griffiths said the regulator expects firms to take robust action to stamp out scam ads and boot out the bad actors behind them, warning platforms not to drag their heels since they can start improving protections now, with serious consequences for those that fail to meet their legal duties once the rules are in force. 

The FCA's Steve Smart backed the proposals, saying tech firms must do more to proactively prevent scam adverts and don't need to wait for the new rules to step up. 

The NECC's Nick Sharp emphasised that criminals are increasingly exploiting online platforms and their advertising infrastructure, and welcomed the chance to strengthen collaboration between regulators, industry and law enforcement. 

Why this matters for members 

This consultation sits alongside the broader fraud-liability debate, where platforms are being asked to demonstrate proactive action. The narrow scope (paid ads only) and Ofcom's emphasis that firms can act ahead of enforcement suggest an opportunity for the sector to shape the debate through early, visible compliance rather than waiting to respond once the Codes are finalised. 

techUK will be reviewing the draft Codes in detail ahead of the October deadline and welcomes member input to inform a coordinated response. Please contact Samiah.anderson@techuk.org.