Which? response to Ofcom's consultation on the Fraudulent Advertising Codes of Practice

Executive Summary

Which? welcomes this opportunity to respond to Ofcom’s consultation on the fraudulent advertising codes of practice. With the proliferation of celebrity deepfakes, fraudulent advertising is fast becoming ubiquitous across the social media sites and search engines consumers use every day, leaving even the savviest internet users vulnerable to being defrauded. The Online Safety Act (OSA) provides a once-in-a-generation opportunity to clean up the internet from online fraud; strong, urgent action is needed to get a grip on this content and crime.

Which? strongly welcomes Ofcom’s draft Fraudulent Advertising Codes of Practice. Holding major tech platforms accountable will require a rigorous framework (and enforcement), we fully endorse the key requirements outlined in the draft codes, including measures to:

• Verify the identity of those managing advertiser accounts. As it stands, it is far too easy for criminals to set up advertiser accounts and to publish fraudulent adverts on major online platforms. We therefore welcome Ofcom’s proposed measures on verifying the identity of those managing advertiser accounts. In particular, we welcome requirements that platforms must verify that those claiming to be authorised by the FCA to promote financial services products have the right to do so.
• Prevent account takeover. Criminals are not only adept at setting up their own accounts, but also at taking control of legitimate ones. We see all too often that fraudsters who have been removed from accounts are able to return with ease. "We are pleased to see that the draft codes oblige platforms to take measures to prevent scammers from returning, and from simply switching to dormant accounts from which they can continue to steal from consumers. These measures must remain in the final codes."
• Use proactive technology to identify potentially fraudulent content from users who do manage to make it past the first line of defence. In order for the online advertising ecosystem to be truly safe for consumers, platforms must be forced to adopt a defence-in-depth strategy. We are pleased to see therefore that Ofcom has proposed  measures to identify known scam websites, measures to prevent legitimate brands from being impersonated, and measures to find and take down deepfake impersonations of public figures. 
• Maintain a public record of ads. Researchers and regulators should be able to identify fraudulent ads, study scammers’ tactics, and ensure that platforms are complying with their duties to remove scam adverts. We therefore welcome Ofcom’s proposals that platforms must establish publicly accessible ad libraries.
• Ensure that scams are easy to report. Many consumers do not report scams because they do not know how. Failure to report scams not only increases the possibility of further consumer harm; it also means that platforms have less information from which to draw when refining their content moderation systems. We therefore support Ofcom’s proposals that reporting scams should be straightforward for consumers.