New UK proposals to tackle scam adverts: what they could mean for fraud victims
Ofcom published its draft Fraudulent Advertising Codes of Practice on 10 July 2026, setting out nearly 40 measures intended to reduce paid-for scam adverts on some of the UK's largest social media and search services. The consultation closes on 2 October 2026, with Ofcom planning to publish its final statement by mid-2027 at the latest. Once the codes complete the parliamentary process and come into force, companies that fail to meet their duties could face enforcement action, including fines of up to £18 million or 10% of global revenue, whichever is greater.
The proposals are designed to prevent future harm. They do not create a new retrospective right to compensation for money already lost through a scam advert. If you have already been affected, your options may include contacting your bank, escalating an eligible complaint to the Financial Ombudsman Service or exploring a scam recovery claim.
What is actually being proposed
Ofcom says 51% of online adults have encountered potentially fraudulent adverts online, while 36% see them frequently. It estimates that victims lose more than £200 million a year on average through scams linked to this type of advertising. The Ofcom proposals therefore focus on preventing fraudulent paid advertising before users encounter it.
The proposed measures include requiring relevant platforms to:
ban accounts responsible for scam adverts and take steps to stop perpetrators opening replacement accounts;
check whether people creating advertising accounts genuinely represent the businesses they claim to represent;
check that advertisers promoting relevant banking or investment services are legally permitted to do so, including through FCA registration where applicable;
test AI advert-generation tools to reduce the risk that they are misused to create fraudulent advertising;
create dedicated reporting channels so trusted organisations such as law enforcement can flag scam adverts for swift action.
These protections are particularly relevant to fake investment platforms, where professional-looking adverts can direct victims to convincing but fraudulent websites. A scam recovery after a fake broker scheme can depend heavily on identifying how the victim was approached and where payments were sent.
Why the proposals will not cover every scam
The new fraudulent advertising duties apply to paid-for advertising on Category 1 and Category 2A services. They do not apply to user-generated posts or non-sponsored search content under these particular codes. However, platforms already have separate Online Safety Act duties relating to illegal content, including fraudulent content that is not part of a paid advert.
Fraud can also begin through direct messages, dating platforms or other personal contact. Cases involving romance scams and payment requests, for example, may never involve a paid advert.
If an advert does lead to a fake investment or cryptocurrency platform, preserve the evidence. Useful crypto recovery evidence can include screenshots, emails, chat histories, transaction records, wallet addresses and details of the websites or accounts used.
What to do if you have already lost money
Contact your bank or payment provider as soon as possible. Mandatory APP fraud reimbursement protections apply to eligible UK payments made through Faster Payments and CHAPS, rather than to every payment method. In-scope claims are generally subject to a maximum reimbursement level of £85,000, although firms can choose to reimburse more. Claims should normally be reported within 13 months of the fraudulent payment.
The process for recovering money sent by bank transfer, card or crypto differs because each payment method has different protections and recovery possibilities. You should also check the FCA Warning List when dealing with an unfamiliar financial business.
Watch out for recovery scams
People who have already lost money can be targeted again. The FCA warns that recovery room scams often involve unexpected approaches offering to recover losses in return for an upfront fee. Warning signs include pressure to pay quickly, guarantees of recovery and requests for further financial information. Claims management businesses carrying out regulated claims-management activity should be appropriately authorised.
Get your case looked at
If you have lost money after responding to a fraudulent advert or fake platform, Claim First offers scam-related claims on a no win, no fee basis, with no upfront charge to start a claim. The company also assists with mis-sold car finance claims, payday loan refunds and housing disrepair claims.
