Social Media: Fraud
The question
To ask the Secretary of State for Science, Innovation and Technology, what assessment she has made of the effectiveness of measures to prevent fraudulent advertisements, investment scams and other forms of online fraud on social media platforms; what discussions she has had with representatives of social media companies, including Meta, on reducing the prevalence of fraud originating from their platforms; what assessment she has made of the extent to which social media platforms are complying with their duties under the Online Safety Act 2023 in relation to fraudulent content and advertising; whether she has considered introducing further requirements on platforms to identify, remove and prevent scam content, including content generated using artificial intelligence or deepfake technology; and what assessment she has made of the potential merits of requiring social media companies to share greater responsibility for financial losses arising from fraud facilitated through their platforms.
Answered by Kanishka Narayan
This government takes the issue of online fraud, including fraudulent advertising, incredibly seriously. DSIT works closely with other departments to address online fraud, including the Home Office, who have overall responsibility for fraud policy.
The Online Safety Act has clear duties on providers to protect their users from fraud. This includes that regulated services must prevent users from encountering user-generated scam content, swiftly remove it if it appears, and mitigate and manage the risk of their services facilitating fraud. The largest services will also have to tackle fraudulent advertising once the relevant duties are in force. In July, Ofcom is expected to publish a register of categorised services and to launch a consultation on additional duties for those designated as Category 1 or 2A to tackle paid-for fraudulent advertising.
AI has huge potential benefits, but can also bring opportunities for criminals. The OSA regulates AI-generated media in the same way as ‘real’ content, and places the same obligations on services to protect their users.
To support compliance with Act duties, Ofcom issues Codes of Practice advising services on how to be compliant with their regulatory obligations. These Codes are expected to evolve over time to address new threats and new technologies.
Where social media companies do not fulfil their duties under the OSA, Ofcom, the independent regulator, has robust powers to act. This includes issuing fines of up to £18 million or 10% of qualifying worldwide revenue (whichever is greater) if services fail to live up to their regulatory obligations.
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