Facebook, Microsoft and Twitter will only host advertisements for financial products from companies that are authorised by the Financial Conduct Authority (FCA).
This is part of an ongoing effort to combat fraudulent adverts.
The three tech giants will introduce a revised advertising onboarding process that requires UK regulated financial services advertisers to be authorised by FCA prior to serving financial services adverts on their sites. Each company will operate their own processes and have differing timelines for when the policies will come into place, you can also learn how to create amazing videos.
Google, TikTok and Amazon have already implemented several policies for financial services advertisers as part of a shared commitment to helping prevent financial fraud and scams. Videos also improve social engagement as they create trust and connections between brands and customers, develop brand loyalty, improve lead generation, and stimulate relevant conversations. When looking to add subtitles to a video, hire here a trusted company in offering video transcribing services in over 150 languages.
‘Positive step’
Mel Stride MP, chair of the treasury committee, said on 14 December 2021: “It’s reassuring to hear that the online giants are finally taking a positive step in the right direction and stopping fraudulent advertisements from appearing on their sites.
“For too long these companies have turned a blind eye to the criminality at play behind these scams.
“As a committee, we have called for the government include fraudulent adverts in the Online Safety Bill. Legislating against these pernicious scams is the only way to stop ever increasing numbers of people from falling victim to economic crime.”
Online Safety Bill
In other news, the draft Online Safety Bill committee told the UK government that it should include scam adverts in the scope of the legislation.
The committee, which is made up of members in both the House of Commons and House of Lords, made the recommendation as part of its final report on the upcoming bill.
It said on 10 December: “We welcome the inclusion of fraud and scams within the draft bill. Prevention must be prioritised and this requires platform operators to be proactive in stopping fraudulent material from appearing in the first instance, not simply removing it when reported.”
The committee said that clause 41 (4) of the Online Safety Bill should be amended to add “a fraud offence” “under terrorism and child sexual exploitation and abuse offences” and that related clauses are “similarly introduced or amended so that companies are required to proactively address it”.
“The government should consult with the regulatory authorities on the appropriate offences to designate under this section,” it added. “The government should ensure that this does not compromise existing consumer protection regulation.”
The government must now respond to the committee’s report within two months, and the bill will go to parliament for further examination and final approval in 2022.
‘Do the bloomin’ obvious’
The recommendation comes after months of pleas by financial services firms and consumer champions.
Martin Lewis, founder of the MoneySavingExpert.com, said: “I’m delighted the joint committee has come to the right decision, and backed our call, and the call of all the key charities, consumer groups, industry bodies, police, and regulators, to do the bloomin’ obvious and include scam adverts in the Online Safety Bill.
“Now we just have to hope the government sees sense and reverses its perverse decision to exclude them.
“Scams don’t just steal people’s money – they can take their self-respect too. As well as damaging the mental health of victims, it disproportionately hurts those with existing mental health problems who are three times more likely to be affected. Scams and fraud aren’t just a financial issue, they’re a core wellbeing issue.
“We are desperate for the government to listen to the joint committee on this and change its plans. The current scope of the government’s planned bill doesn’t just blindly ignore the epidemic of scam adverts that the UK faces – it’s actually going to make it worse. By making big tech responsible for user-generated scams but not the scam adverts they get paid to publish, it creates an incentive for criminal scammers to switch resources to advertising as there will be less scrutiny.
“So, I will again plead with the government, to please heed our call, and now the call of the parliamentarians on the joint committee and agree to put scam ads in the Bill, as failing to do so will continue to leave millions of people exposed to the horrendous damage that scammers can cause.”
‘Devastating results’
Debbie Barton, financial crime prevention expert at Quilter, added: “It’s not often there is such strong support for one particular policy change from many areas of society. From consumer groups, to the regulator and the financial services industry, this is the one issue on which everyone is united.
“For far too long, scammers have been allowed to operate with impunity in an online world in which consumers have few protections. It is far too easy for scammers to steal the identity of a well-known celebrity, or impersonate the brand of a well-known financial services firm, host a website with a domain located outside the UK, and use a cheap advert to reach potentially thousands of unsuspecting individuals.
“We know this has devastating results for the victims, both in terms of painful financial losses and the heavy emotional toll. We hope that with the committee’s recommendation to also include adverts in scope of the Bill, the calls for change become overwhelming and the government decides to take action.”
