Google said all financial services in the UK must be checked by regulators before being allowed to advertise.
Google will crackdown on financial fraud on its UK platform and said on Wednesday that all financial services must be audited by the regulator before they are announced.
The UK finance agency issued 1,200 consumer warnings about scams advertised by fake companies on social media platforms last year, double the number in 2019.
Google, which is part of US tech giant Alphabet, said in a blog post that the new policy, which follows calls from the Financial Conduct Authority (FCA) to verify paid promotions, will go into effect on February 6th.
“While this is an important step for Google, we believe that a permanent and consistent solution requires legislation,” an FCA spokesperson said via email.
Victims are usually members of a united ethnic, social, religious, community or group. The scammer finds a way to join this group and offers investment opportunities with high or safe returns to the captive public. All you need to do is convince the leader or an influential member.
The regulator will review the outcome of Google’s decision once the changes take effect, the spokesman added.
Bank of England Governor Andrew Bailey is urging the government to introduce a legal requirement for internet giants to take down financial fraud sites, the Sunday Times reported in March.