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UK financial watchdog warns social media about “dangerous” ads that foster fraud

File Photo: Social network words and social media logos can be seen through the magnifying glass shown in this figure taken on May 25, 2021. Photo taken on May 25, 2021. REUTERS / DadoRuvic / Illustration

September 28, 2021

London (Reuters) – Social media companies must do more to stop promoting “dangerous financial promotions” that foster fraud and face-to-face spikes, the UK’s Financial Conduct Authority said Said on Tuesday.

“We are informing them that they expect to be involved in this process of protecting the community,” FCA Chief Operating Officer Mark Steward told Watchdog’s Annual Meeting. Told.

He doesn’t give a concrete example of an ad that “provides dangerous financial promotions to social media,” but consumers who shop online and try digital banking or investing, especially during the coronavirus outbreak. As the number of people increases, financial fraud is increasing rapidly.

Google has banned FCA-approved investment ads, including gold and cryptocurrencies, since September 6th of this year.

Steward said the FCA was happy with Google’s actions.

“We can see that it’s already influencing the growth of suspicious financial promotions on Google Search,” he said.

“We are discussing this with all social media companies. It is important for all social media companies to change processes and procedures, otherwise we will have to take action,” Steward added. ..

Tech companies say they are investing in fraud prevention and working with governments and regulators.

(Report by Hugh Jones, edited by Catherine Evans and Allison Williams)



UK financial watchdog warns social media about “dangerous” ads that foster fraud

Source link UK financial watchdog warns social media about “dangerous” ads that foster fraud

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