The Treasury select committee has requested information from four internet and social media firms about what policies they have in place to fight investment scams and protect consumers.
Committee chairman Mel Stride MP asked Microsoft, Twitter, Snapchat and TikTok if companies offering investment opportunities on their platforms need to be authorised by the Financial Conduct Authority (FCA) before being allowed to advertise.
Internet giant Google has taken this approach when revisiting its advertisement policy for financial products in the summer.
Stride added: “Online platforms have changed the way we live, work and socialise. However, it’s clear that fraud is rapidly rising and ruining people’s lives. Scammers seem to act with impunity online and their actions can have devastating consequences.
“As a committee, we are investigating the causes, scale and effects of economic crime. We want to gain a clearer understanding of the actions tech companies are taking to combat fraud and protect consumers online. That’s why I have today written to Microsoft, Twitter, Snapchat and TikTok to request information on how they are preventing their users from falling victim to scams.
“It is also imperative that the government takes further action in this area. We have long suggested that including fraudulent advertisements within the scope of the Online Safety Bill would be a good place to start. Without coordinated action, I fear many more people will sadly fall victim to these scammers.”
The committee’s move follows calls from the FCA in October 2021 demanding stricter oversight of paid-for online advertisement, as well as Google offering an additional $2m (£1.4m, €1.7m) in ad credit to help the UK regulator fight online fraud.
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