The Government’s Online Safety Bill will now include measures to crack down on fraudulent online advertisements after a year long campaign by UK Finance, Which? and the Mental Health Policy Institute.
This announcement has been welcomed by many in the pensions industry as being an important step to reducing financial and pension scams.
Pimfa, the trade association for wealth management, investment services and the investment and financial advice industry, said such measure could wipe out online fraud and the practice of cloned websites.
Pimfa chief executive Liz Field says: “When the Government first published its White Paper on the Online Safety Bill many who work in financial services, consumer groups and charities were dismayed to discover that financial harm was not among the harms the new Bill would deal with.” This she said lead to a concerted campaign to get the government to include both online adverts and user-generated content.
She adds: “In May, the Government conceded our point about user-generated content and included such content within the scope of the Online Safety Bill. Today, it has once again accepted our argument — and that of the Financial Conduct Authority, Financial Services Compensation Scheme, Bank of England, and the Treasury Select Committee — that paid-for online adverts be included within the scope of the Bill.”
Yvonne Collins, head of financial crime prevention at Phoenix Group, adds: “By including measures to address this in the Online Safety Bill, internet users will be better protected and laws regulating online activity will be in line with existing practices in the wider world.
“The onus is now on social media platforms and search engines to be more vigilant against fraudulent activity on their services, including unlicensed financial promotions and fake ads.
“As platforms and search engines step up and put proportionate systems and processes in place, consumers must continue to be wary of suspicious online activity.
“Popular scam techniques to watch out for during uncertain periods include using market volatility around stock markets to encourage you to transfer or review your finances, promoting investment opportunities with guaranteed returns, offering to unlock cash held in pensions, and fake online resources that deliver malware that can infiltrate sensitive data.”