Google UK will rely on a regulator to crack down on scam finance ads

Google is tightening its ad screening rules in the UK after a steep rise in fraudulent adverts online during the pandemic. The search giant has announced that starting in the fall it will only run ads for financial products and services from sources that have been cleared by the UK’s financial watchdog.

Google said it will update its policy from August 30th and begin enforcing the rules a week later on September 6th. At that point, advertisers will have to demonstrate that they are authorized by the UK Financial Conduct Authority or qualify for its limited exemptions. According to Google, the requirement covers financial products and services that go beyond the regulator’s ambit.

The decision didn’t happen overnight, however. Google has been on the end of mounting criticism from regulators, law enforcement and consumer groups over its perceived lack of action against scrupulous ads. According to trade body UK Finance, investment scam cases on search engines saw a 32 percent increase last year. These typically involve criminals duping victims into moving their money to a fictitious fund (such as a pension pot) or to pay for a fake investment. Losses incurred from the fake ads totaled over £135 …read more